Fintech industry grows at a rate four times faster than the tech industry

The fintech sector in New Zealand has experienced exponential growth over the past decade, outpacing the rest of the tech industry by four times, according to the Technology Investment Network’s second annual Fintech Report. In 2023, the sector generated export revenues of $2.64 billion, with more than half of its 8857 staff hired from overseas.

Despite this rapid growth, the sector has yet to fully benefit from open banking due to the lack of consumer data right legislation in the country. However, there is hope on the horizon as the Customer and Product Data Bill is making its way through the parliamentary legislative process.

Minister of Commerce and Consumer Affairs Andrew Bayly highlighted the potential benefits of open banking, stating that it would improve productivity and competition in the financial services sector. He emphasized that personalized financial services tailored to individual needs would benefit consumers and small and medium enterprises, enabling them to access new products and services to grow their businesses.

The report also outlined key highlights of the fintech sector, including a 10-year compound annual growth rate of 32 percent, with total revenue growing from $160 million in 2013 to $2.64 billion in 2023. Despite a decrease in funding in 2023, the sector continues to invest in research and development, with 20 percent of total revenue dedicated to developing new products and services.

Overall, the future looks bright for the fintech sector in New Zealand, with opportunities for further growth and innovation on the horizon.