Sydney among upcoming fintech cities
23 July 2015
Five emerging fintech hubs, including Sydney, Singapore, Berlin, Madrid and Amsterdam were named the "five dark-horse cities" by a global survey.
Global investment in fintech has tripled in the past five years, making the financial sector one of the growing areas experiencing radical change.
KPMG identifies three leading centres in the global fintech race as Silicon Valley, New York and London. However, emerging fintech hubs such as Sydney has a potential to develop into a major player.
Sydney well-positioned to be a fintech hub
Sydney boasts a strong and sophisticated financial services industry, with its geographical location and time zone advantages, located within the rapidly growing Asia-Pacific region, Sydney is well positioned to drive focus and collaboration in the sector.
According to a recent KPMG report, Sydney is positioned to capitalise on this growing trend and become a fintech hotspot. "As a leading global centre for financial services, coupled with a deep cluster of ITC/ digital, creative, and professional service industries, the city is positioned to capitalise on this growing trend".
In research, conducted by PwC, it suggested that the "Australian tech startup sector has the potential to contribute $109 billion or 4% of GDP to the Australian economy and 540,000 jobs by 2033". With around 64% of Australia's tech start-ups based in NSW, this is worth around $70 billion to NSW.
Stone & Chalk
Recently, NSW's first fintech Stone & Chalk, an independent, not-for-profit entity was created to support the State's rapidly growing financial technical services sector.
Stone & Chalk has attracted more than $2 million in industry support and will enable Sydney to play a lead role in the fast emerging fintech global market. It is the result of the NSW Government's Financial Services Knowledge Hub.
The financial services industry employs about 177,000 people and produces five per cent of Australia's overall gross domestic product. Sydney has the potential to become a key fintech leader within the Asia Pacific region and a key exporter of financial services.