Australian fintech startups to watch

By Madhvi Mavadiya | 18 January 2016

As Hong Kong and Singapore dominate the fintech arena in the Asia Pacific region, Australia’s accomplishments in the industry can get lost in amongst news of billion dollar investments in other countries. Fintech growth rates have exploded in Australia and with Sydney as a leading hub for the country’s financial services and IT industry, there is a lot of innovation to expect for 2016.

Here is a list of the Australian startups to watch in 2016:

Avoka

At the end of last year, Avoka kicked up a storm with news of their partnership with identity verification company Trulioo, which is a step in the right direction as biometric authentication is set to boom in the year 2016. The new solution will merge two existing systems in order to enable international banks to conduct digital authentication across 40 countries and four billion people.

Equitise

In the equity crowdfunding industry, Equitise is emerging as a big player after plans were put in place to create a secondary market where crowdfunded securities could be traded with the intention of making this business more transparent for buyers and sellers. The platform, created in partnership with Syndex, will also generate additional interest in crowdfunding companies and encourage more investment.

Metamako

Last year was a transforming year for Metamako, particularly with the launch of their application MetaApp which will allow financial services to reduce latency and simplify the overall structure of a trading platform. Alongside this, Metamako joined the newly established fintech hub in Sydney, Stone & Chalk, which will help the fintech company to flourish and accelerate development. Most recently, the fintech company was named as one of top 50 emerging stars in KPMG Fintech and H2 Venture’s prestigious list of global finance technology innovators.

Pin Payments

Pin Payments has gained popularity after the launch of their “programmed payments” service that allows payments to be routed from the person paying to a bank account with the introduction of a new Pin API. While Pin is set to become a direct competitor for PayPal and Square, Pin Payments will charge 30 Australian cents per transaction.

Promisepay

After securing funding from Westpac’s Reinventure Fund, the online payments system startup PromisePay partnered with Airtasker, the Australian online marketplace, which powered the platform’s $25 million in transactions. The aim of the partnership was to eradicate any uncertainty about getting paid for tasks and simplifying the marketplace, as CEO and co-founder Simon Lee believes that it is inherently complex.

Stockspot

2015 was a big year for StockSpot, an online investment adviser and fund manager as it raised £1.25 million in a series A funding in order to fund expansion. With the use of algorithms, StockSpot assesses financial situations and advises where money should be invested; this model could disrupt the traditional insurance industry, which is what other robo-advisors like Wealthfront and Betterment have started to do.

Tyro

Fintech startups aim to disrupt the traditional financial sector and Tyro, a 12 year old payments company announced that they aim to do so by creating a new bank with the $100 million they’ve saved. This news comes in a long line of reports of challenger banks coming to the surface so it will be interesting to see how these new lenders develop in 2016.

MoneyPlace

This P2P lender received an investment of $60 million from Australian bank Auswide in 2015, who also took a 20% stake and this news was amongst a plethora of reports of banks dipping their toe into the fintech space. Money Place only received their retail and wholesale Australian Financial Services licence in October, so they have grown in leaps and bounds within the P2P sector.

A report by Morgan Stanley predicted that loans made on P2P platforms in Australia will grow to $22 billion by 2020 and this is the trend that will be seen across the global P2P industry – just one element of the entire fintech revolution. The Australian fintech industry is set to grow at an increasing rate and all of the companies listed above are operating in this background, so watch this space!