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What’s on the horizon for NZ fintechs ?
New Zealanders have eyes on the economic horizon and want to understand trends, anticipate business challenges and identify the future opportunity, FintechNZ executive director Jason Roberts says.
It is clear Aoteroa has weathered the covid pandemic pretty well, which in turn bodes pretty well for our tech sector and Fintech in particular.
“The base metrics are identifying a pretty resilient economy with GDP exceeding pre-pandemic levels, and budget indications looking better than the post-GFC bounce back,” he says.
“New Zealand taken on lower debt by comparison with other countries such as 50 percent less than Australia, 70 percent less than the UK and 80 percent less than the US.
“However, against strong geopolitical headwinds, supply chain issues, and the invasion of Ukraine, New Zealand has more than a few challenges.
“While post pandemic, Kiwis we can be certain of uncertainty, as a nation it has to have more confidence about the tech economy knowing this sector has largely accelerated of its own accord.
“But the NZ tech sector has also recently been boosted with the likes of a $20million top up in funding targeting digital among many others. Aotearoa has to put in $2.9 billion in the emissions reduction plan to fight the climate crisis and this will spark plenty of modified investment choices and further drive new innovation as well.
“However, the focus now is on building capacity for the important export markets and the time is now to build the best fit for New Zealand and the world.
“So how should Kiwis evaluate fintech momentum and investments with a lens on international activity and trends?
“Global investment is declining to pre-2021 levels. So while the trajectory is still healthy we are no longer seeing the boom blast of covid as growth proportionally cools.
Reports identify some Asian economies such as Singapore, India and Vietnam and African markets are accelerating at pace, reflecting greater financial inclusion for mass populations who have better greater digital access and products.
With New Zealand only exporting 1.3 percent of Fintech export value to the Asian region, what can we explore here in this fast growing sector?
What we can anticipate for Aotearoa over the next year is some minor retrenchment of investment and deals, perhaps reflective of the wider international marketplace noted above.
With growing interest in the proposed consumer data rights (CDR) legislation Aotearoa can see this as but one catalyst for New Zealand marketplace change.
CDR opens the foundations for greater competition and the intention of developing best-fit products and services. There are many other success factors to consider of course with effective implementation the real focus for FintechNZ over the coming years.
Ngā mihi nui, Kip (he/him)
P +64 275 030188
Christchurch, New Zealand