By CryptoCoins News
Analysis has found that investment in Australia’s FinTech startups rose last year compared to the rest of the world.
In a report from KPMG, The Pulse of FinTech Q4 2016 [PDF], it found that total FinTech investment in Australia increased to $US656 million across 25 deals in 2016 compared to $US185 million across 23 deals in 2015.
It appears that authorities are beginning to realize the potential that FinTech can play in helping financial inclusion. So much so, that they are recognizing that improving the efficiency of banking services can systematically boost the performance of the economy.
It is because of this that could be one reason why government and financial regulators are now making huge efforts to support the creation of FinTech hubs in addition to helping them with the regulatory environment and the challenges it presents.
To demonstrate this, Australia’s Securities and Investments Commission (ASIC) announced last year that it was signing a first-of-its-kind blockchain agreement with the British Financial Conduct Authority (FCA) enabling financial technology companies in Australia and the U.K. to have greater support from financial regulators.
Not only that, but from December 2012 for the next 12 months all eligible businesses will be able to test different financial or credit services without first needing to apply for an Australian Financial Services License or Australian Credit License. It is hoped that this will help to further push the FinTech agenda in Australia.
Global FinTech Investment Drops
Analysis by KPMG shows that there was a 47.2 percent drop in global FinTech investment in 2016 to $US24.7 billion.
Despite this, venture capital investment remained strong in 2016, totalling $13.6 billion across 840 deals. This is a seven percent increase from 2015, even as deal flow dropped by around 100 rounds.
As can be seen 2016 was considered a tough year for the FinTech environment. The Brexit vote, the U.S. presidential election, a slowdown in China, and fluctuations in the exchange rate globally are some of the factors that prompted investors to be more cautious in their investments.
Yet, while a number of regions experienced some saturation within more developed financial technology areas such as in payments and lending, KPMG predict that increased interest will be seen in other areas. Over the next 12 months, insurtech, regtech, artificial intelligence, and data and analytics are likely to draw further growth.
It may have been a tough 2016, but the sector will continue to be an attractive sector in the future for its many benefits.
First appeared at CryptoCoins News