A study has ranked Sydney as the 8th strongest fintech hub in the world, beating out traditional financial powerhouses such as Frankfurt, Paris and Tokyo.
The latest Deloitte Connecting Global FinTech report was released Wednesday morning, allocating a score to 44 different fintech hubs after taking into account the World Bank Doing Business Index, the Global Innovation Index and the Global Financial Centres Index.
Sydney, with a score of 45, was the eighth most conducive hub for fintech growth, improving from ninth in the previous report in September last year. No other Australian cities were included in Deloitte’s index.
“It’s great to see that fintech in Australia is being recognised for its significance internationally in such a short period of time,” said FinTech Australia board member and chief executive of fintech startup space Stone & Chalk Alex Scandurra.
He said that there was recognition in the report that Sydney acted as a “gateway” into the Asian fintech ecosystem.
“The Deloitte report correctly notes that Sydney is increasing engaging with Asia, through encouraging Asian fintech companies to set up in Sydney and vice versa,” he said.
“This has also been a strong focus area of Stone & Chalk driven from our Fintech Connect Asia program which brings together top startups, investors and corporate customers from across Asia.”
Deloitte also identified Sydney as having a deep financial talent pool, as well as “robust” wealth management and superannuation sectors. High mobile penetration and internet banking in the country were acknowledged as advantages.
The news backs up other optimistic statistics on the fintech sector in Australia. Rival consulting giant KPMG revealed in February that investment in Australia’s fintech startups had increased from $US185 million in 2015 to a whopping $US656 million last year, while the rest of the world went backwards over that period. Sydney (8th) and Melbourne (21st) both improved their positions in last month’s Global Financial Index.
Scandurra said that although the harbour city was “an established fintech world power”, the ceiling was still high for the hub.
“With the right policy settings and support, [Sydney] has the potential to take advantage of the world’s economic gravity moving towards Asia and increasing its fintech exports in to the Asian region.”