Fintech splash favours few

Banking Day staff
The investor rush to play along with the presumed champions of fintech disruption is flooding the favoured firms with cash, converting the interlopers into a new establishment.

An analysis by Sydney-based investment firm H2 Ventures and KPMG found the "top 50" companies in "have raised over US$26 billion in the last year alone, and over US$50 billion in aggregate capital over their lifetimes" the two consulting firms said in a now annual study.

Dubbed the Fintech 100, the H2 KPMG study found the entire cohort raised more than US$52 billion in venture capital over the last year, estimated to be almost double the 2017 figure.

The consultants selected the 100 drawing on data related to capital raising, geographic diversity, sector diversity and stab at ranking "product, service and business model innovation."

The second group, dubbed an "Emerging 50" raised over US$1 billion in the last year and almost US$2 billion since founding.

New Zealand payment gateway provider Pushpay makes the 100, along with seven Australian fintechs.

AfterPay Touch and Airwallex made the study's top 50. The other five were Agridigital, Look Who's Charging, Nod, Power Ledger and Trade Ledger.

The three local fintechs that made the top 100 (in the top 50) have vanished from the 2018 edition. These were Prospa, Tyro and Society One.