Fintech

Melbourne is Australia's leading tech city, with a growing list of homegrown and foreign fintech firms, find out why.

According to Savills, Melbourne is the only Australian city that is among the best 22 cities for tech companies in the world.  Victoria's fintech sector is leading innovation in banking and payments, credit and lending, insurance and wealth management.  These three Victorian fintech companies, Airwallex, Judo Bank and Afterpay Touch, are among the world's top 100 fintech innovators.

Financial institutions and newcomers alike are keen to drive innovation.  Startups and especially unicorns are great innovators and help to improve the local talent pool. Melbourne is home to more than 330 fintech start-ups, and by the end of 2020, there were five homegrown fintech unicorns headquartered in Melbourne, collectively valued at over US$30 billion.

5 Unicorns headquartered in Melbourne

  • Airwallex (cross border payments - founded 2015, est. valuation US$1.2 billion)
  • Afterpay (buy now pay later - founded 2014, market cap. US$31.8 billion)
  • Judo Capital (challenger bank - founded 2016, est. valuation US$0.925 billion)
  • MYOB (business online accounting software est. valuation US$1.3 billion)
  • PEXA (digital property settlement - founded 2015 est. valuation US$1 billion)

Airwallex was awarded Fintech Organisation of the Year award and AfterPay received the Global Market Presence award at the 2020 Finnie Awards, the national fintech awards run by Fintech Australia that is sponsored by the Victorian Government.

Right on the tail of these unicorns are also scaleups such as Moula ($160 million Series D in 2020), Prospa and Assembly Payments making their mark from Melbourne.

International fintech firms that have joined our thriving ecosystem include Cognizant, SlackSquare, TransferWise, Dataminr, Stripe, Revolut, GoCardless, Transfermate, Xero and Tradeplus24.

Fintech Australia, Australia's national fintech association is also headquartered in Melbourne.

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ビクトリアではワールドクラスの風力、太陽光、海洋、バイオ燃料といった再生可能エネルギー資源が身近に利用できます。風力発電タワーから太陽熱温水器まで全て地元生産できる製造業ベースがあり、それを州のワールドクラスのインフラと世界をリードする研究力がサポートしています。

大都市から離れた地方には大規模な再生可能エネルギー施設が幾つもあり、州のクリーンエネルギーの発展を牽引しています。その一例として、ビクトリア州の2カ所に100メガワット級風力発電施設を建設し、間接的に首都キャンベラに再生可能エネルギー利用の電力を供給するという計画が承認されました。(キャンベラでは、2020年までに消費電力の90%を再生可能エネルギーで賄うという計画を立てています。)ビクトリアの高い技能を持つ労働力、そして高度に発達した製造業界はこのような新たな課題や、再生可能エネルギー投資機会に対応する有利な立場にあります。

クリーンエネルギー需要に対応し、政府は家庭、ビジネス、公共建築物のエネルギー効率を高めるエネルギー効率事業計画を策定しています。これは、エネルギー効率の高い商品や電気機器を認定し、消費者が家庭やビジネス、非居住用建築物にそれらを設置すると値引きや特典が得られる制度です。温室効果ガス削減効果が大きければ大きいほど、消費者は得をする仕組みです。

さらに、政府は2000万豪ドルの新エネルギー雇用基金を設立し、新エネルギー技術分野に特化した企業に助成しています。

他州に比べ、より数多くの学生がビクトリアのワールドクラスの大学で工学・情報通信分野の学位を取得しており、投資家は新エネルギー技術プロジェクトに必要となる専門知識を有する労働力を容易に見つけることが出来ます。

しかもビクトリア州政府は非常に条件の良い研究開発優遇措置(KMPGの調査では、世界で最も条件の良い制度のひとつ)を実施しており、ビジネスの税負担が最も低い州として、新規出資者がビジネス機会を探すにあたり見過ごすことのできない州となっています。

州政府は輸出に力を入れており、上記の優遇制度以外でも、研究や産業連携を促進に努めています。

Sources
  1. Alphabeta, Fintech Deep Dive Profile 2019
  2. Willis Towers Watson, Global pension assets on the up
  3. WorldPay 2020, Global Payments Report - January 2020
  4. Fintech Australia - Australian Fintech BNPL Report
  5. Deloitte 2019, The economic value of cloud services in Australia 2019
  6. World Pay Global

Australia has regulatory settings that favour fintech adoption

There are opportunities right now for fintech in Melbourne and Australia.

Why Melbourne for your fintech business?

The Victorian Government ‘gets’ financial services and understands the importance of building an ecosystem in which fintech businesses are nurtured and encouraged.  Melbourne’s concentrated finance sector delivers considerable margins with room for fintech to disrupt and grow.

Here are some of the reasons why you should consider Melbourne when setting up your fintech business.

Melbourne has a large and sophisticated financial services sector.

Financial services is the largest industry in Victoria, accounting for A$49.3 billion in Gross Value Add, representing 11 per cent of Victoria’s Gross State Product (GSP) and employing approximately 130,000 people.

Making Melbourne their home are:

  • Two of Australia’s top four international banks, NAB and ANZ
  • Australia’s two largest health insurance funds, Medibank Private and BUPA Australia, representing over 50 per cent of the Australian health insurance market share
  • Two of Australia’s top five industry super funds, AustralianSuper and UniSuper, with a combined A$273 billion of funds under management
  • The Australian sovereign wealth fund

This has made the city a thriving place for cutting edge fintech start-ups to develop and grow their business.

Deep skills and talent

  • Victoria’s fintech talent pool outperforms other jurisdictions across the APAC region with more professionals skilled in software development compared to Singapore and Hong Kong.
  • Victoria is the leading state in Australia with largest number of professionals with expertise in programming languages.
  • Some of Victoria’s key talent and skills are in compliance, regulation, data analysis, engineering, information technology, and banking and finance.
  • Victoria also had more engineering and related technology, and IT graduates in 2019 than any other region in Australia or Singapore.

Innovation fintech hubs, co-working spaces, accelerators and access to capital support

  • Melbourne has many innovation hubs and co-working spaces, such as YBF, Inspire9, and Stone and Chalk.
  • Victorian industry and research-led accelerator programs support Victorian-based fintech start-ups, including the Melbourne Accelerator Program, Startupbootcamp and NAB Ventures.
  • Victorian fintech companies have dominated key funding rounds, accounting for almost 80 per cent of A$2 billion allocated to Australian start-ups in 2018-19.

Perfectly situated for 24 hour product development

  • Melbourne's time zone bridges the US and European markets, allowing for 24 hour product development.

Strong government commitment and support

The Victorian Government:

  • funds the Innovation Hub in Melbourne’s Docklands CBD to bring together businesses, research organisations and industry associations.
  • is establishing a new digital hub in Cremorne that will be a world class facility to upskill Victoria's tech workforce, foster entrepreneurial startups and drive partnerships in R&D.
  • has set up a wide range of funding programs and assistance packages to help start-ups grow. For example, it has invested A$60 million in a fund of funds scheme, A$25 million in a venture debt fund and is offering A$50 million in low-interest loans to help fund innovative start-ups undertake research and development.
  • funds start-up agency LaunchVic, which plays an important role in supporting the start-up ecosystem in areas such as training, pre-accelerator programs and mentoring.
  • sponsors the Finnies, the national Fintech Awards, and Intersekt, Fintech Australia’s annual conference.

Australian fintech series - presented by Invest Victoria

Session 1:  Changes, Opportunities and Challenges

Session 2:  European Fintechs in Australia

Session 3:  Meet the Regulator

Session 4:  Disruption and Transformation in the Financial Sector

We can help you with your next market entry project

If you are considering investing in Melbourne, we can help you scope the market opportunity in Melbourne/Australia and assist you with your business case development.

Working with us will allow you to be fully informed and limit the number of surprises associated with your new investment. Our staff are experienced and well connected  and can introduce you to potential partners to help make your investment a success.

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