The Australian fintech sector is experiencing a decline, with a significant number of companies shutting down. According to a recent report by KPMG, the total number of independent fintech firms in Australia has decreased.
The decline is particularly pronounced in the blockchain and cryptocurrency sectors. The report highlights that a number of Australian fintech firms ceased operations in 2024, with some closures attributed to operational failures and others due to mergers and acquisitions.
The decline in the blockchain and crypto sectors is largely attributed to a growing interest in artificial intelligence. In response to the challenges facing the cryptocurrency industry, the Australian Securities and Investment Commission (ASIC) has proposed a comprehensive financial licensing regime for most crypto firms operating in the country. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has also unveiled plans to intensify its focus on the cryptocurrency sector in 2025.
Despite the current downturn, there are indications that the blockchain and cryptocurrency sectors may see a resurgence in 2025. The trend of mergers and acquisitions within the fintech sector reflects a broader strategy among firms to adapt to changing market dynamics. The growing interest in artificial intelligence is reshaping the fintech landscape, influencing both investment decisions and operational strategies.