Invest
‘Lagging the world’: Australia’s fintechs grew despite lack of incentives
Invest
‘Lagging the world’: Australia’s fintechs grew despite lack of incentives
Australia’s fintech sector continues to grow, despite the challenges of the COVID-19 recession, new research has shown.
‘Lagging the world’: Australia’s fintechs grew despite lack of incentives
Australia’s fintech sector continues to grow, despite the challenges of the COVID-19 recession, new research has shown.

Research released by KPMG shows Australia has added another 104 fintechs to the market in just over 12 months.
In total Australia now has 733 active fintechs.
Commenting on the findings Daniel Teper, National Fintech Lead, KPMG Australia said the strength of the market through the COVID-19 pandemic was a positive for the sector as a whole.
“Despite the impacts of COVID-19 on the economy, increased digitisation across financial services and new customer behaviours have created new opportunities for innovation.,” Mr Teper said.

“The overall impressive net growth in the number of fintechs illustrates both the robust market dynamics and a strong support for the fintech sector in Australia.”
Fintech sector lagging behind
Despite a growing number of fintechs entering the market, venture capital investor Seed Space highlighted Australia cannot compete globally in a fintech market due to weaker global initiatives.
The capital firm points out early stage venture capital limited partnership schemes in Australia currently offer a 10 per cent tax offset to investors in “innovative companies at the early and growth stages of the startup life-cycle”, according to information on the Treasury website.
Similar incentive schemes in the US offer an up to 100 per cent tax offset for early stage fintech investors depending on the state where the investment is located, while the UK’s investment scheme offers an up to 50 percent tax offset.
Early stage fintech investors in Japan are offered a 25 per cent offset for investing in early stage companies, the Seed Space data noted.
In a submission to the Senate committee on fintech and regtech, the company said not only were the incentives available in Australia not large enough to push investor money towards the fintech sector, the concession scheme was also restricted in the types of companies investors could fund, with service businesses such as robo advisers and neo-banks excluded.
“Many Australian fintechs are excluded from these incentive programs, despite their use and development of innovative technologies, and creation of novel business models,” the company said.
In order to boost Australia’s competitiveness as a global investment hub for fintech, Seed Space managing director and founder Dirk Steller said the government should also look at investment matching programs such as those used in European markets.
“In the UK and also in the EU, there are government direct investments into VC firms often through matching programmes - i.e. the VC firm raises $50 million and the government adds another $50 million,” Mr Steller said.
“We believe the Australian Future Fund could have similar provisions.”
About the author

About the author


Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more

Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more