Insights into New Zealand’s FinTech Sector
By Sarah Minhinnick, General Manager, Capital Markets Origination, NZX
New Zealand has long obtained a reputation for being innovative and agile. We’ve had to. Being a comparatively small country, having the ability to innovate at pace has been core to our economic success.
This is especially true within the New Zealand FinTech sector. Over the past decade we’ve seen exceptional growth in FinTech, as local talent has continued to innovate and leverage new technologies to develop our key industries.
From financial management solutions, banking, shopping or wealth management, the secret ingredient growing our FinTech sector is our ability to think big while benefiting local. New Zealand has long been at the forefront of financial innovation, and it’s now being recognised on a global scale.
The 2022 Fintech Insights Report, prepared by Technology Investment Network (TIN) highlights the tremendous growth in overseas revenue for TIN 200 Fintech companies, up to 26.2% - which is significantly higher than the average TIN200 growth rate of 14.4%.
The Covid pandemic spurred on opportunities within the sector, with our leading Kiwi FinTech Companies – Xero, Pushpay, PaySauce and SmartPay among others, helping companies meet the growing demand for digital adoption.
At the peak of the pandemic, Pushpay allowed churches in the US the ability to connect to their congregations virtually through Covid live-streaming services. In some cases, their digital reach enabled a six-fold increase in attendance and opened a new door for Pushpay to prove what’s possible.
In the Capital Markets it’s also been remarkable to see record-levels of retail investors encouraged by the growing popularity of online trading platforms such as Sharesies, Hatch, Jarden Direct and ASB Securities. With these platforms providing easy and low-cost access to the New Zealand markets, up to 15% of New Zealanders are running their own investment portfolios through a wealth tech app created by a New Zealand FinTech.
When we look at the trends shaping our society – with the new generation of ‘digital natives’ already making waves within our workforce, changes within work environments and heightened demand for consumer data rights, the need for FinTech innovation is there for all to see.
At NZX - as a FinTech company ourselves - we know that being at the forefront of the technology curve is necessary to stay competitive. We also recognise the important role capital markets have in supporting our FinTech community, by providing Kiwi FinTech’s with a platform to amplify their profile and access the capital they need to grow.
It is important as the gatekeepers of capital at all stages to ensure both current and future tech leaders are properly informed of these levers of scale. This includes early-stage venture capital, private equity, bank funding, as well as both public and private markets.
We look forward to supporting future opportunities with the sector!
See Sarah Minhinnick at the FinTechNZ Hui Taumata, where she will join a panel titled “your capital raising journey to success — VC & partnering”