The 2019 Fintech100 highlights dynamic fintechs from around the world transforming the financial services industry.
The 2019 Fintech100 report, by Fintech Innovators, a collaboration between fintech investment firm H2 Ventures and KPMG Fintech, features the leading 50 'Established' fintech companies across the globe, as well as the most captivating 50 'Emerging Stars'.
Now in its sixth edition, the report highlights innovative fintechs that create products and services at the juncture of technology and financial services, seeking to disrupt the products and processes dominant in the marketplace.
Payments and transaction companies form the largest group on the 2019 Fintech100 list, representing 27 of the ranked firms. Wealth and insurance companies have continued to rise in prominence this year. Four of the seven Australian companies ranked are payments companies.
The Asia-Pacific region dominates the rankings, with Ant Financial (China) coming in first place for the second year running, followed by Grab (Singapore) and JD Digits (China). China has dominated the Fintech100 for the past three years and this year is no different, with three Chinese fintechs in the Top10. We are also seeing the emergence of India as a fintech force, taking out two of the top 10 positions.
Seven Australian fintechs were selected among the world’s leading players, with cross-border payment provider Airwallex the highest ranked Australian firm at #32 on the Top 50 Established firms, having risen from #49 in 2018. It’s followed by challenger bank Judo Bank at #33 and online payment service AfterPay Touch at #47. On the Top 50 Emerging firms list, Australian fintechs included mortgage provider Athena Home Loans, voice analysis engine daisee, disaster response provider Sempo and smart receipts app Slyp.
Flow of capital
The Fintech100 companies in this year’s list have raised over US$18B in the last 12 months. 32 companies on the Fintech100 have raised at least US$100M in the last 12 months alone and the average capital raised by the top 10 companies in the past 12 months is over US$1.25B. Significant Venture investors in Fintech companies include Sequoia Capital and SoftBank, together with strategic investors such as Alphabet (Google’s Holding Company), BBVA and Tencent Holdings.
South East Asia is the latest hotspot
There are more Asia Pacific based companies on the 2019 fintech100 than from any other region. Of the 11 companies that have raised over $1B in the past 3 years, 8 are from the Asia Pacific serving customers in China, India and rapidly emerging markets in South East Asia such as Indonesia, Vietnam and Thailand. The smart money is rapidly flowing to fintechs focused on this region.
An increasing number of fintechs are rapidly globalising across multiple jurisdictions, with examples including Australia’s AfterPay Touch.
Monoline to mainstream
Early fintech innovators with monoline product propositions are now diversifying to fulfil a greater set of mainstream customer needs. Australia’s favourable regulatory developments, such as the Restricted ADI License, are facilitating greater levels of competition and customer choice.
Almost every company on this year’s list is a beneficiary of a global policy shift to putting customers in control of their data, including Australia’s Open Banking and Customer Data Right legislation, which is driving competition and allowing fintechs to access customer banking data to create faster, more personalised and innovative services.