But, despite the strength of the Melbourne fintech community, the survey finds that Melbourne is lagging behind, and offers poor support, to financial tech companies compared to Sydney, London, the US, Singapore and Hong Kong.
Fintech Census, founded by MoneyPlace CEO, Stuart Stoyan, surveyed 52 Melbourne fintech companies, representing more than 500 entrepreneurs about the challenges facing their business.
According to Stoyan, there is an “overarching cry out” for a dedicated fintech space in Melbourne and, more broadly, he says Fintech is a huge opportunity for Australia. “Financial services represent 9% of GDP and are ripe for disruption.”
“There has been some great efforts to establish Sydney’s fintech community. We need these efforts to be replicated in Melbourne, so that a robust national fintech ecosystem can ensure Australian fintech remains relevant in a regional and global context,” Stoyan said.
“The census paints a clear picture of the needs of fintech in Melbourne including limited early stage funding, lack of clear pathways to partner with Government or corporates and that the majority believe Melbourne is lagging behind Sydney.”
And, Stoyan says the Fintech Census – the first ever in Melbourne - was the first step towards establishing a collective voice for Victorian fintech entrepreneurs and, he adds, it showed a unified call for greater support from the Government and corporates.
And, here’s a snapshot of Melbourne’s fledgling fintech sector from Stoyan:
• Melbourne fintechs are solving problems for payments, personal finance/asset management, lending or providing institutional tools
• The majority of Melbourne fintechs are under two years old, have less than 10 employees, are post-launch and are based in the CBD
• Almost 60% of Melbourne fintechs have five or less employees. About 10% have more than 20 people in the company
• 85% of Melbourne fintechs are founder funded with a quarter also receiving funding from VCs or externally funded
• Only 10% of Melbourne fintech founders are women
• The majority, 50% were aged in their 30s, with 15% in their 20s and 10% over 50-year-old.