New Zealand isn’t an early adopter of fintech. As late as 2017, the country didn’t belong to a region that received massive venture funding in this tech space. This fact is clearly pointed out in the infographic below by experts from carsurance.net.
Since then, however, the southwestern-Pacific nation has begun to come of age. Thanks to cohort-based programmes like the Kiwibank FinTech Accelerator, many startups have received the support they need to get their promising innovations off the ground.
Here are the reasons why 2019 will be an exciting year for fintech in New Zealand.
More Wearable Tech Adoption
Wearables will take the country by storm in the coming months. Consumers, especially millennials, are expected to embrace and use smart watches and glasses to pay for goods and services.
Despite the projected increase in online transactions, though, the cooperation of small and medium businesses is critical for New Zealand to truly become a cashless society by 2028.
Merchants need to start developing non-cash payment strategies and consider novel methods for identification to win the confidence of most consumers.
The arrival of Wirecard to New Zealand in 2018 should help accelerate the digitalization of payments in the country.
More Disruption in Traditional Sectors
Fintech disruption won’t be concentrated on the banking sector alone. Tech startups will also give established insurance and real estate firms a good run for their money.
One of the more popular entrants is the United Kingdom’s Purple Brick, which helps democratize real estate processes for a fixed rate.
Insurance companies will also be under tremendous pressure as the government tries to eliminate commission-based products. The entry of fintech startups in this area is seen as good news because consumers will be able to enjoy more choice and more flexibility.
More Investment Platforms
One of the first alumni of the Kiwibank’s FinTech Accelerator to gather steam in 2019 is Sharesies. This young company aims to level the playing field for minor investors.
Hatch is another exciting fintech startup that enables Kiwis to purchase shares in the United States stock in three easy steps.
More Opportunities Overseas
Asia is opening its door to New Zealand’s fintech firms. The Hong Kong government has committed to pouring $10 billion in investments, which can be an abundant source of financial juice for Kiwi startups to grow and gain a foothold in East Asia.
In late 2018, New Zealand laid the groundwork for further collaboration with Singapore, which is the world’s second freest economy – only behind Hong Kong.
Such partnerships allow Kiwi companies to get stronger and further thrive in more mature markets in Asia, which can help invigorate the fintech space back home one way or another. Fintech has plenty of room to grow in New Zealand, and several unprecedented changes are about to unfold soon. To learn more about global fintech trends, check out the infographic.
