Australia Makes Top 10 In Global Fintech Standings
(13th) and Melbourne (32) outperform major centres in the first global fintech index covering more than 230 cities across 65 countries
SYDNEY, 4 DECEMBER 2019: Australia’s positive initiatives to establish and grow its fintech sector is paying dividends. The country ranks eighth in the Global Fintech Index City Rankings 2020 which evaluates the fintech ecosystems of more than 230 cities across 65 countries. Australia’s leading cities for fintech are Sydney – in 13th position, second only to Singapore in the Asia Pacific region – and Melbourne 32nd.
Many of the cities which traditionally top the lists of leading financial centres are conspicuously absent from the new league table. Financial giants such as Frankfurt, Shanghai and Zurich have been replaced by cities including Sao Paulo, Bangalore and Mumbai.
Top of the Global Fintech Index City Rankings 2020 is the San Francisco Bay area, followed by London, New York and Singapore. The United States also tops the list for fintech countries followed by the United Kingdom and Singapore. Lithuania, a country with a population of about a third of that of London, lies fourth in the global list thanks to its active encouragement of fintech companies and regulatory approach.
By country and region, the USA and the rest of the Americas form the biggest single area by number of fintech hubs. At the same time Europe’s diversity of centres (both old and new), its commitment to progressive regulation, and to ensure that rules are applied evenly, contribute to its position as the region with the second highest number of hubs globally.
The Global Fintech Index City Rankings 2020 identifies emerging hubs, fintech companies and trends. The Index algorithm incorporates data from global partners including StartupBlink, Crunchbase and SEMrush.
“We’ve noticed a growing interest in our ecosystem globally during our trade missions and talks this year, and this report crystallizes the reasoning behind it,” FinTech Australia General Manager Rebecca Schot-Guppy said.
“This is an incredible result, and a testament to the hard work our ecosystem has put in to grow its reach and influence.”
Simon Hardie, CEO and Founder of Findexable – the company behind the Ranking explained: “The Index is the inspiration of thousands of hours of interviews, surveys and internet searches – and the product of four months of algorithm development to create, for the very first time, a fully global ranking of fintech countries and cities.
“The rankings in the report are proof of how much, and how fast, the world is changing.”
Fintech is the electricity of the global digital economy – making connections and making it easier and cheaper to transact for more people in more parts of the world than was ever possible before.
Keeping up with the pace of change, and keeping track of progress, however, is essential if fintech’s innate digital difference is to be successfully converted into real-world value.
For the purpose of the Index algorithm fintech is any business that applies a technologically enabled innovation specifically geared for the provision or distribution of financial services.
The country and city rankings are calculated from a total score comprised of a combination of three metrics:
- Quantity – Size of fintech ecosystem and supporting structures – number of fintechs, fintech hubs, co-working spaces, accelerators, global influencers and population (countries only)
- Quality – Impact/performance – size and growth of fintechs (eg number of unicorns), investment, events, value generation, international collaboration, website ranking
- Environment – ease of doing business, critical mass, regulatory environment – regulatory interventions to improve competitive environment, incentives for start-ups, internet censorship, payment portals, fintech courses.
A comparison between the Global Fintech Index City Rankings 2020 and the most recent Global Financial Centres Index shows the varied success of different cities (chart right):
Simon Hardie added: “The rankings are evidence of a worldwide de-coupling between the financial strength and the commercial domination of traditional financial centres. Financial wealth is no guarantee of a city’s status as a fintech hub. You might call this the rise of non-traditional finance.
“There are some common features of winning fintech hubs around the world. Fintech-friendly regulations incentivise entrepreneurship and encourage investment. A strong talent pool is also key to fintech success together with an ecosystem where people can connect easily.”
One of the most interesting outcomes from the launch of the Global Fintech Index City Rankings 2020 is the breaking of an assumed link between a city’s status as a start-up city and its position as a global fintech hub. As this year’s rankings show, a city’s start-up status is only a reflection of the strength of its fintech community. The terms fintech and start-up are not interchangeable.
While established global start-up centres like London, New York and San Francisco – all retain or improve their positions at the top of the rankings – others do less well. Among the top 40 fintech hubs tracked by the index, nearly half are in a lower position as a fintech hub compared to their ranking in global start-up indices.
This table below shows the comparison between fintech hub and start-up city rankings.
Hardie added: “Keeping up with the pace of change, and keeping track of progress, is essential if fintech’s digital difference is to be successfully converted into real-world value. We created the Global Fintech Index City Rankings 2020 to help fintech founders, and the ecosystems they’re based in, reach their goals.”
Download the Global Fintech Index City Rankings 2020: https://findexable.com/gfi-download/
For further information on Findexable and the Global Fintech Index City Rankings 2020
Email: [email protected] or Tel: +44 (0)779 376 8109
For further information on FinTech Australia
(+61) 409 623 618
A global Index
The Global Fintech Index (GFI) by Findexable is the first global, real-time, objective ranking of all cities where there is a fintech cluster. The rankings are determined and updated using our proprietary algorithm. It is digital and real-time. It uses open data & data sharing to create a continuously updated index.
A global mission
The GFI is designed to highlight opportunities and drive transparency across the ecosystem. We are on a mission to help financial institutions, governments and investors understand how innovation is evolving, where to invest, and what it takes to build a thriving fintech ecosystem.
ABOUT FINTECH AUSTRALIA
FinTech Australia is a member-driven organisation that is building an ecosystem of Australian Fintechs to advance the global economy and culture. It aims to build a strong community, foster connections while supporting innovation and regulation that members require. Above all else, FinTech Australia exists to be the voice of the Australian fintech community.
FinTech Australia collaborates with stakeholders to create the best possible regulatory environment, and by fostering an ecosystem of supportive partners and networks so fintech companies can thrive and grow in Australia. It is also an active driver of policy development in the emerging fintech space.