EY’s Fintech Australia 2020 census found that 39% of local fintechs now have more than 500 paying customers, up from 27% in 2019, while 88% plan to expand overseas in the future.
“Fintechs are by definition agile organizations, so they have been able to respond quickly to the COVID-19 crisis and make the most of the new opportunities it has presented,” said Meredith Angwin, Fintech Advisor at EY.
“As people have adapted to new ways of working and living during the pandemic, we have seen a significant increase in consumer use of digital payments and transactions. At the same time, the buy now, pay later sector has grown at a rapid pace, both here and abroad.
However, around 72 percent of fintechs say COVID-19 has negatively impacted their ability to raise capital, while 39 percent said it fell short of their capital-raising expectations.
“It’s not all smooth sailing,” Ms Angwin said.
“While the sector continues to face the usual hurdles of regulatory concerns and competitive pressure, it now also faces additional challenges arising from the pandemic, such as capital crunch and fears that consumers will return to the perceived security of major historical institutions. for their financial services needs in these uncertain times.
However, fintechs continue to grow in a number of key areas, including the number of employees (an average of 10 full-time and two part-time), while 78% of fintechs are now post-revenue.
