Sydney is the home of Australian FinTech
From NSW, you can shape the global future of finance. Ranked 5th in the world in a global assessment of FinTech hubs, Sydney has a reputation for shaping the future of finance and tech.
NSW’s capital receives the major share of FinTech venture capital in the country — in the order of $171 million — with 60% of Australia's FinTech companies located in Sydney. It’s this industry standing and investment growth potential that have led many new and established companies to move to Sydney.
Some of the city’s promising FinTech startups currently include:
The Finnie Awards, supported by the NSW Government, recognises emerging tech and talent, as well as excellence in wealth management, payments, consumer lending, crowdfunding and more.
Quick facts: FinTech in Sydney and NSW
Why make Sydney and NSW a base for your FinTech business? Read some of our key statistics:
- NSW is home to almost 60% of FinTech startups in Australia, and that number is growing fast.
- NSW’s FinTech sector experienced a 480% growth rate from 2014 to 2017.
- In 2016, $US675 million was invested in Australian FinTech across 25 deals.
- Between 2014 and 2016, Sydney received $US171 million in FinTech-related venture capital, more than anywhere else in Australia.
- Australian FinTech venture capital firms have grown by 150% since 2014.
- Sydney is the only Australian city to rank in the top 20 globally in the Startup Genome’s 2017 report, with NSW home to almost two-thirds of Australia’s FinTech companies.
An easy place to startup
The NSW and Australian Governments are committed to building an ecosystem in which FinTech businesses are nurtured and encouraged. Here’s how a Sydney base will help your FinTech startup make its mark in the global financial industry.
An environment that encourages growth
Situate your company at the centre of FinTech. Touch base with tech’s emerging leaders, raise capital and learn from other financiers at one of the following Sydney hubs.
- The NSW Government funds the Financial Services Knowledge Hub to bring together businesses, research organisations and industry associations. Through this hub, Stone & Chalk was born. Stone & Chalk is now the Asia Pacific’s largest FinTech hub and a central component of the state’s financial services ecosystem. The hub attracts membership from 24 large Australian and global corporations and government. The hub supports the growth across the full spectrum of the FinTech landscape, including payments, peer-to-peer, crowdfunding, automated advice, capital markets, and cryptocurrencies.
- H2 Ventures is a Sydney early-stage venture capital firm looking to invest in businesses just like yours. Through its accelerator program, talented entrepreneurs, investors and world thought leaders come together to make decisions that impact world finance.
- The Australian Securities and Investment Commission encourages innovation and has released a world-first class waiver to allow eligible FinTech businesses to test certain specified services for up to 12 months without an Australian financial services or credit licence.
- In the heart of Sydney’s financial district, you’ll find Tyro FinTech Hub. Backed by FinTech entrepreneurs, this is a space where you can put your finger on the local economic pulse, find like-minded business owners and discover growth areas.
- The NSW Government is serious about building a stronger entrepreneurial community through its Sydney Startup Hub. As the largest startup hub in the southern hemisphere, with 11 floors to accommodate up to 2,500 people over the next five years, there’s scope for cross-functional business areas to merge and collaborate. Startup accelerator, Fishburners, is one of the hubs many tenants.
Current investment opportunities in FinTech
There are opportunities right now for FinTech investment in Sydney and NSW. Here are some of the most significant trends.
- Growing diversity, including a five-fold increase in the number of Australian FinTech startups in the past five years.
- Increased investment activity, rising from $US53 million in 2012 to more than $US675 million in 2016. This includes mergers and acquisitions, private equity and venture capital investments.More competition, with Australia’s consumers increasingly less loyal to traditional financial institutions. 28% of Gen Y respondents now hold products with three or more institutions, creating increased opportunities for FinTech startups.
- Unbundling of the traditional financial services value chain, giving FinTech and other startups the chance to solve specific customer pain points.
Interested what Sydney and NSW can offer FinTech companies? Speak to the NSW Investment Concierge for personalised service.
Case study: OnDeck uses Sydney as a springboard to success.
After pioneering online small business lending in the US, OnDeck has come to Australia to provide alternative funding solutions to small companies.
The online lender has set up its Australian office in Sydney to take advantage of the city’s strong entrepreneurial culture and support for FinTech innovation. Being in Sydney has allowed OnDeck to easily access larger financial institutions and potential partners, and to be close to where its customers are.
Read more about OnDeck