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Leading Australian fintechs on Global Fintech100

Leading Australian fintechs on Global Fintech100

Australian companies made a strong showing in the H2 Ventures and KPMG 2018 Fintech100, highlighting dynamic fintechs from around the world that are transforming the financial services industry – from digital payments and lending, to insurtech, to neo-banking – as they attract investment at a record pace.

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The Fintech100 consists of two lists, the ‘Leading 50’, ranked based on innovation, capital raising activity, size and reach and the ‘Emerging 50’, which features exciting new fintechs at the forefront of innovative technologies and practices, often pursuing new business models.

The top placed Australian fintechs were AfterPay Touch, which shot up 18 places from 2017, moving from 44 to 26, and Airwallex, a new entry at 49. These were the sole Australian representatives in the 2018 ‘Leading 50’.

Five more Australian companies: Agridigital, Look Who's Charging, Nod, Power Ledger and Trade Ledger made the 2018.
 

Key highlights include

  • Australian companies and startups made a strong showing, with 7 companies on the Fintech100, most of these in the Emerging 50.
  • Chinese fintechs continue to dominate the top of the list, accounting for three of the top five places on the Leading 50 list with Ant Financial in first, JD Finance second and Du Xiaoman Financial fourth. Singapore’s Grab was a new entry, taking third place, and US fintech Sofi moved up to fifth place
  • Global competition continues to expand, with 36 different countries represented in the full Fintech100, up from 29 in 2017 and 22 countries in 2016. Almost half of the companies on this year’s list (41) were founded and continue to operate in emerging markets.
  • Aggregate capital raising has rocketed over the past 12 months with the top four companies on this year’s list each having raised A$1.4B or more in the last 12 months. The ‘Top 50’ have raised an aggregate A$38B over the past 12 months and A$70B over their lifetime, while the Emerging 50 have raised a total of A$1.4B in the last year and just under A$3B since founding.
  • Payments companies dominate the Fintech100, with 34 in total, followed by 22 in lending, 14 in wealth management and 12 in insurance. ‘Multi’s’ (fintechs offering a broad range of financial services to customers) dominated the top of the list, led by Ant Financial.
  • Digital or ‘neo banks’ also increased their representation to 10 with Monzo, SolarisBank and Starling Bank making their Leading 50 debut.

Ian Pollari, Global Co-Lead of KPMG Fintech, commented: “Australia’s fintech ecosystem has once again demonstrated its global relevance, with a strong showing on the 2018 Fintech100. Both Afterpay and Airwallex show that local fintechs with global ambitions are able to attract customers to scale beyond our shores and raise capital from international investors.”

“Globally, payments and lending continue to be the dominant sectors, with wealth management taking off, featuring 14 companies on the list. Insurtech remains strong with 12 companies. Notable this year is the emergence of neo-banks, with 10 on the list – which is the beginning of what we believe will be accelerated growth of digital banking models globally and in Australia,” he said.

Ben Heap, Founding Partner at H2 Ventures, said: “Venture capital backing of fintech companies continues to accelerate. The companies on the 2018 list have raised over US$52B in venture capital, more than double the total of last year’s list, and more than US$27B of capital in the past 12 months, a 366 percent increase over last year. In terms of major funding rounds, 26 companies on the Fintech100 have each raised US$100M in the last 12 months. The first four companies in the Leading 50 have all raised over US$1B in the last 12 months alone."

“Against this backdrop – and with US and Chinese fintechs attracting massive interest, it is encouraging to see Australian companies holding their own and competing on the global stage."

The top 10 global companies in 2018 Fintech100

  1. Ant Financial (China)  
  2. JD Finance (China
  3. Grab (Singapore) 
  4. Du Xiaoman Financial (China) 
  5. Sofi (US) 
  6. Oscar Health (US)
  7. Nubank (Brazil)
  8. Robinhood (US) 
  9. Atom Bank (UK) 
  10. Lufax (China)

Selecting the Fintech100

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 at www.fintechinnovators.com

For further information

Ashford Pritchard
0411 020 680
apritchard2@kpmg.com
 

About KPMG Fintech

The Financial Services industry is transforming with the emergence of innovative new products, channels and business models. This wave of change is driven by evolving customer expectations, digitalisation, as well as continued regulatory and cost pressures. We are passionate about supporting clients to successfully navigate this transformation, mitigating the threats and capitalising on the opportunities. KPMG Global Fintech comprises professionals in over 45 fintech hubs around the world, working closely with financial institutions and fintech companies, to help them understand the signals of change, identify the growth opportunities and to develop and execute on their strategic plans.

About H2 Ventures

H2 Ventures is a global thought leader in fintech venture capital investment. 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 – Australia's only dedicated fintech accelerator – and operates out of Sydney's dynamic Startup Hub.

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