Australia's leading fintech innovators for 2017 | KPMG | AU

The Fintech100: Announcing Australia's leading fintech innovators for 2017

Australia's leading fintech innovators for 2017

Australia has made a strong showing in the 2017 Fintech100, with 10 Australian fintechs appearing on the list announced today by Fintech Innovators, a collaboration between fintech investment firm H2 Ventures and KPMG Fintech.

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The Fintech100 is divided into two components: the ‘Top 50’ firms around the globe, which are ranked based on innovation, capital raising activity, size and countries; and the ‘Emerging 50’, companies that are at the forefront of innovative technologies and practices, seeking to boldly push the envelope in financial services.

Three Australian companies, Prospa, ZipMoney and AfterPay Touch, made the Top 50, either as a new entry or at a higher rank than their 2016 placement.

Seven Australian fintechs were represented on the Emerging 50: Airwallex, CoverGenius, Hyper Anna, Macrovue, MoneyMe Financial Group, Tic:Toc, and Valiant.

Key global highlights of the list included

  • China fintechs take the top three places on the list, and Chinese firms account for five of the top ten.
  • Global fintech innovation continues to accelerate, with 29 different countries represented in the Fintech100, up from 22 countries in 2016.
  • ASPAC is on the rise, with 30 fintechs on this year’s list; while the UK and EMEA dominate the Emerging 50 with 26 companies; the US placed 19 companies on the full list, the most of any country, and three in the top 10.
  • ‘Disruptors’ dominate – fintechs focused on disrupting traditional models represent 73 of the Fintech100.
  • Lending and payments focused companies continue to be lead in terms of sectors, with 32 and 21 respectively on the full list. Fifteen companies are in transactions/capital markets and 12 are in insurtech.

Overall, the Fintech100 includes

  • 41 companies from the UK and EMEA (Europe, the Middle East and Africa)
  • 29 companies from the Americas (North and South America), and
  • 30 companies from ASPAC (including Australia and New Zealand).

Ian Pollari, Global co-lead of KPMG’s Fintech practice, commented: "Australia has once again demonstrated its strong fintech credentials with a very strong showing on the Fintech 100. Globally, disruptive fintech companies continue to dominate, representing strong interest from investors in business models and management teams that are seeking to radically change the industry paradigm.

“That said, the importance of ‘enablers’ – companies working in cooperation with financial services institutions to steadily improve products and services – has remained steady. Across the 2017 list, there are 27 such enablers; working across accounting, insurance and banking," he said.

Ben Heap, Founding Partner at H2 Ventures said: "Capital continues to flow into the fintech sector reflecting investor confidence in the future potential of these firms. Australian fintechs Prospa, ZipMoney and AfterPay Touch have all raised significant capital over the past 12 months.

“The Top 50 are a strong reflection of the diversity of fintech innovation. There are fintechs with lending and payment platforms, insurtech, digital banking and companies applying big data to fintech. Superior data & analytics capability notably will be a requirement to be a great financial services firm in the future, be it a traditional bank or a game changing fintech startup,” he added.

The Top 10 companies in the 2017 Fintech100

  1. Ant Financial – China
  2. ZhongAn – China
  3. Qudian (Qufenqi) – China
  4. Oscar – US
  5. Avant – US
  6. Lufax – China
  7. Kreditech – Germany
  8. Atom Bank – UK
  9. JD Finance – China
  10. Kabbage – US

Other key insights from the 2017 Fintech100 report

  • Aggregate capital raised remains significant – the top 50 companies have raised US$4.8B in the last year alone and over US$27Bn in aggregate capital over their lifetimes. The ‘Emerging 50’ have raised over US$600M in the last year and just over US$1B in total, since founding.
  • Major funding rounds dominate investment – twelve companies on the Fintech100 raising over US$100M, notably ZhongAn’s US$1.5B raise in conjunction with its recent IPO on the Hong Kong Stock Exchange.
  • ‘Disruptors’ continue to stand out – fintechs focused on disrupting technologies continue to dominate, accounting for 73 of the Fintech 100. These are companies that are radically changing their industry paradigm for all players.
  • Lending and payments lead – The number of lending and payments related businesses continue to stand out in this year’s Fintech 100, with 32 and 21 respectively.
  • Open banking around the world – Open banking regulation in the UK, Europe, the United States and Australia has been a major catalyst for innovation, with 15 companies working in the related areas included on the Fintech100.

How is the Fintech100 selected?

The Fintech100 were selected following extensive global research and analysis based on data relating to five factors. Two criteria are related to capital raising reflecting the emphasis that venture capitalist investors place on the ability of firms to innovate in order to generate a long term sustainable competitive advantage.

  1. Total capital raised 
  2. Rate of capital raising 
  3. Geographic diversity 
  4. Sector diversity 
  5. X-factor: degree of product, service and business model innovation (a subjective measure that is applied only with respect to companies appearing on the 50 Emerging Stars list)


View the full Fintech100 list or download the report at www.fintechinnovators.com.

Further information

Ashford Pritchard
KPMG Australia
+61 411 020 680 (mobile)
apritchard2@kpmg.com.au

Kent Miller
KPMG International
+1 908 313 5037 (mobile)
ktmiller@kpmg.com

Melissa Hurwitz
H2 Ventures
+61 431 241 300 (mobile)
melissa@h2.vc

About H2 Ventures

H2 Ventures is a thought leader in fintech venture capital investment around the world. Founded by brothers Ben and Toby Heap, and based in Sydney, Australia, it invests alongside entrepreneurs and other investors in early stage fintech ventures. H2 Ventures is the manager of the H2 Accelerator – a leading fintech, data and A.I. accelerator.

About KPMG's Global Fintech practice

KPMG’s Financial Services practice has launched the global fintech practice in order to leverage international investment activity and capability development in fintech across KPMG member firms. Warren Mead and Ian Pollari, partners with KPMG in the UK and KPMG in Australia respectively, have been appointed as global co-leads of the practice, along with a leadership team including partners from countries including the U.S., U.K., Israel, China & Hong Kong, India and Australia.

About KPMG International

KPMG is a global network of professional services firms providing Audit, Tax, and Advisory services. We operate in 155 countries and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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