KPMG's 2023 Australian fintech survey highlights current trends and sentiments in the Australian fintech market.

The report provides insights into key challenges that fintech leaders are facing around revenue, funding, resources and customers, and outlines opportunities available for the Australian fintech sector.

Australian fintech opportunities and challenges

More than half of our respondents are finding current economic conditions more challenging than last year.

Over 53 percent of fintech firms in Australia are finding current economic conditions more challenging compared to last year.

Australian fintechs are expecting to face challenges around raising capital, customer acquisition, resourcing and revenue contraction in the next 12 months. The capital raising environment continues to be difficult to navigate, particularly for early-stage tech firms. However, organisations that are focused on near-term, self-sustained profitability will be more likely to weather the storm and continue to attract fintech funding.

In addition, we expect a continued period of rationalisation will likely take place over the near-term, with consolidation expected in areas of over-participation or where scale benefits are critical to building a profitable enterprise.

Looking ahead, if Australia successfully brings inflation in line with targets, we can assume pressure on the market will ease and investors may feel safe to refocus on growth assets again.

Australian Fintech Survey Report 2023

KPMG's fintech survey report highlights the difficulties faced by the fintech market both globally and in Australia, where both total investment and the number of deals materially dropped compared to 2022. In 2023, there has been a modest decrease in the number of fintech firms active in the Australian fintech ecosystem compared to previous years, the first time we have recorded a decline since our analysis began.

Focusing on areas of interest such as revenue & funding. resources and customers, our report covers key trends and the overall sentiment of leading Australian fintech businesses.  

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