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The Australian fintech landscape welcomed a slew of new players last year, particularly in the lending and cryptocurrency categories, according to the latest market snapshot from KPMG.
Over the past 12 months, 104 new fintechs joined KPMG's list, bringing the total to 733 active fintechs.
Daniel Teper, national fintech lead at KPMG, said the increased digitisation across financial services and new consumer behaviours shaped by the COVID-19 pandemic had created opportunities for innovation.
"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," he said.
Twenty-six groups joined the roster of active fintechs in the lending category over 2020, bringing the total to rest at 103.
According to KPMG, this increase was supported by new players in both consumer and SME lending sub-sectors. The growth in Buy Now, Pay Later providers also provided a boost in the lending space, especially as some groups were reclassified from the payments category.
"We have seen a repurposing and recategorisation of some businesses as they mature their monetisation strategy and business models," Teper explained.
There was also a substantial growth in the number of new players in the blockchain and cryptocurrency space, which swelled from 32 to 81 last year.
The table from KPMG below shows the growth in each category:
