The 2024 landscape of financial technology in Australia is prominently led by the payments sector, marking its position as the most developed area within the field. According to a report by KPMG, this sector not only boasts over 150 active companies but has also captured approximately 20% of the nationwide fintech market. Notable firms within this sector include Tyro, Cuscal, Zip, and Airwallex, which have attracted significant deal values through both local and international investments.
A key event in this sector has been the acquisition of Australian company A2B by Singapore-based ComfortDelGro, a major multi-modal transport operator. This movement illustrates the increasing interest foreign investors have in Australian fintech, specifically in payments. However, as the sector continues to mature, there is a growing anticipation for new regulatory measures aimed at ensuring that payment service providers operate within a clearer framework designed to level the playing field.
In tandem with developments in the payments sector, the regtech space has also experienced notable growth in 2024. According to KPMG, investments in regtech have surged, primarily driven by the heightened needs for risk management and compliance solutions across both emerging and established organisations. Remarkably, the regtech sector was the only fintech subsector to observe an increase in global investments during the first half of 2024.
Currently, Australia hosts around 80 active regtech participants, making it the third-largest fintech subsector in the country. The focus within regtech has shifted increasingly towards deploying solutions that yield greater organisational value while concurrently reducing compliance costs and mitigating the risks associated with non-compliance. Regtech firms are now leveraging artificial intelligence technology to navigate the complexities of evolving regulations efficiently. This trend is particularly crucial as the regulatory landscape becomes more intricate, especially for international fintech participants, thereby heightening the potential for continued investments and interest in regtech for the foreseeable future.
As 2024 progresses, the intersection of payments and regulatory technologies clearly illustrates the dynamic nature of Australia's fintech sector, driven by technological advancements and an adaptive approach to compliance and risk management.
Source: Noah Wire Services