A global guide to the SMB market for fintechs and financial service providers Australia
Read on to learn about:
• The size and composition of the small business market in Australia
• The fintech ecosystem and regulatory environment
• The top financial platforms in the region
The market at a glance
Size & make up of the market
The SMB population is relatively large, with a smaller proportion of sole traders than average.
International trade
Australian SMBs aren't especially involved in import or export directly. Still, they are relatively exposed to global forces due to Australia's strong position as a resource exporter and reliance on intermediate outputs.
Most popular financial software
Xero, the first mover in cloud accounting software, launched in Australia in 2008 and now has the edge over legacy market leader MYOB. MYOB offers both desktop and online packages while Xero is purely online.
The fintech ecosystem
Fintech in Australia is well established and encouraged, ranking 6th globally. It has moved from being a disruptor to a collaborative sector with traditional businesses, allowing fintechs to scale and traditional businesses to benefit through partnership.
Top financial software platforms
2.3M Australian SMBs have specialist bookkeeping or ERP software
of Australian SMBs use spreadsheets in place of accounting software
fully outsource bookkeeping to accountants
SMB tech readiness and the fintech ecosystem
Tech readiness and regulatory environment
Australian SMBs lead the field in using eCommerce and are ahead of the curve in cloud computing usage.
There is a good balance of tech skills and entrepreneurship skills. But the innovation skills are below developed countries' (OECD) averages.
In July 2024, France is introducing mandatory e-invoicing & real-time reporting for VAT, which will likely drive an increase in SMBs using digital systems to manage their finances.
Fintech ecosystem
Australia is ranked #6 out of 83 in Findexable's global index of the strength of fintech ecosystems.
The two largest fintech sectors in Australia are payments and lending. The fastest growing industries are insurtech, wealthtech, and regtech.
The Australian Government works with the fintech industry to ensure an internationally competitive environment for fintech. It established a Fintech Advisory Group to advise the Treasurer directly on issues important to Australia's fintech industry.
