Fintech innovator: Sydney makes major strides
Australia is home to over 800 fintech companies, 28% founded by women. More than half of the country’s fintechs are based in Sydney, the birthplace of Rokt, Zip Co, Afterpay, Brighte, and a raft of smart companies harnessing technology to disrupt and improve the way people pay for life’s necessities.
The first major financial market in the world to open each day is the Australian Securities Exchange (ASX), which is based in Sydney’s Barangaroo financial district. With the Reserve Bank of Australia (RBA), plus a host of foreign banks, fund managers, private equity firms, venture capitalists, and accounting and law firms nearby, it is fertile ground for fintechs to flourish.
Sydney’s powerhouse fintech companies
Financial technology – better known as fintech – refers to innovative technologies aimed at enhancing and streamlining the provision and use of financial services. In essence, fintech plays a vital role in assisting companies, entrepreneurs and individuals effectively manage their financial operations and overall financial wellbeing.
It’s a burgeoning area of the tech industry and one that Sydney has warmly embraced.
The stars of Sydney’s fintech landscape include:
Rokt
Founded in Sydney in 2012, Rokt is an AI-powered ecommerce platform. The platform optimises each element of a transaction, allowing ecommerce retailers like eBay to leverage their first-party data to provide personalised messages and offers, among other services. This creates greater relevance and value for customers, leading to higher revenue for the companies using the platform. Its founders set out to transform ecommerce and succeeded. Rokt is now the global leader in ecommerce technology, enabling companies like Uber, PayPal, Hulu, and eBay to increase customers and grow revenue. With more than 500 employees, it has offices worldwide and is one of Australia’s first fintech ‘unicorns’ – a privately held startup company valued at over US$1 billion.
Zip Co
Zip is a leading global Buy Now, Pay Later (BNPL) company that disrupts the credit card model. Founded in Sydney in 2013, it gives consumers, merchants, and businesses in 13 international markets access to transparent, flexible, and interest-free credit and has more than 8 million customers worldwide.
Afterpay
Founded in Sydney in 2014, Afterpay is Australia’s biggest BNPL platform. An alternative payment system designed to avoid the problem of credit card debt and help people spend responsibly, its phenomenal growth has seen it gain more than 22 million global customers and over 240,000 global merchant partners.
Brighte
Dubbed the ‘Afterpay for solar’, Brighte is another fintech that has disrupted how people pay for things. Founded in Sydney in 2015, it offers affordable payment plans for solar and smart home technology with zero interest. Since 2016, more than 2.3 million installed solar panels have been enabled by Brighte finance.
Fintech in Australia: backed by industry and government
Thanks to substantial industry and government support, Australia excels in the fintech space. It’s the world leader in contactless payment penetration and has the second-highest smartphone adoption worldwide, making it a nation equipped to embrace cutting-edge fintech solutions.
Incubators like Stone and Chalk, based at Sydney’s innovation hub, Tech Central, provide valuable guidance to fintech startups and scaleups, ensuring they have the right support to make a significant global impact. An industry-led initiative, it connects fintech entrepreneurs, venture capitalists, corporates, and government across the full spectrum of the fintech landscape (payment systems, peer-to-peer lending, crowdfunding, automated advice, capital markets, and cryptocurrencies).
The enhanced regulatory sandbox
The introduction of the enhanced regulatory sandbox (ERS) by the Australian Government has paved the way for people and businesses to test out new and innovative financial services or credit activities without needing a licence up-front. ERS offers a testing period of up to 24 months, encouraging new fintech ideas to emerge and helping shape the future of financial services in Australia.
Australia’s ‘early adopter’ culture breeds success
Sally Loane is Chair of Destination NSW, Chair of Ignition Advice and a director of Chubb Insurance Australia. She was the Chief Executive Officer of the Financial Services Council (FSC) from 2014–2021. She believes Australian culture is uniquely suited to financial innovation, driven by a population eager to embrace new technologies and ideas.
Ms Loane highlights the ‘early adopter’ mentality and the ‘can-do’ attitude that permeates the Australian consumer base.
Sally Loane, Non-Executive Director Destination DNSW
“People here are not afraid to take risks and try new tech. We’re world-leading in our payment systems,” she says. “And by this I mean how we make financial transactions, from the largest banks to a small consumer purchase. Most Australians are now very used to paying cashless on our smartphones and watches, but in many overseas countries we are still asked for a PIN or a wet signature.”
Sally Loane
Chair of Destination NSW
This forward-thinking approach and technological sophistication position Sydney as a global leader in fintech.
Barangaroo: a symbol of daring progress
Reflecting on Sydney’s remarkable progress in the fintech and regtech space, Ms Loane says the city’s appetite for innovation makes it an ideal choice for any organisation seeking an inspiring location to host a financial services event.
“This is the place that’s close to all the major banks, to all the major fund managers, the regulators, and the people who drive financial services in Australia,”
Sally Loane
Chair of Destination NSW
Sydney’s Barangaroo precinct has lifted the city’s standing on the global financial stage even more. The city’s newest financial hub, Barangaroo is a sustainability trailblazer , accommodating approximately 1,800 residents and serving as a workplace for 23,000 office workers. For anyone in financial and professional services, it’s the place to be.
“I think real strides have been made in linking this extraordinary precinct to the rest of the city,” says Ms Loane. “It’s very easy to walk from, say, the ASX or the RBA into the city from Barangaroo. Sydney is the best place for any financial services event because this is the place where it happens.”
