Or Hobbit movies. It’s dairy, worth around NZ$ billion – nearly % of the nation’s export income.
The second thing you should know is that the tech sector is no after dairy as a source of offshore revenue.
And the fast-growing fintech sector is unofficially Aotearoa’s th biggest export generating around NZ$ billion
The value of fintech to the nation that gave Xero to the world has been revealed in a new report by Technology Investment Network TIN.
TIN’s inaugural Fintech Insights Report delivers a deep dive into $ billion into the sector, looking at a range of benchmarks including size and significance, key export markets, investment challenges and opportunities, along with a comprehensive directory of early-stage Fintech companies based in New Zealand.
TIN managing director Greg Shanahan said Kiwi fintech has been one of the fastest growing market sectors in the TIN Report for more than a decade, with a five-year compound annual revenue growth rate is %.
In , Fintech was the second largest market sector in the TIN Report in dollar value growth – generating almost a quarter of all growth – and third largest in terms of total revenue.
“The continuing growth of cloud-based financial management and payment systems, accelerated by the COVID pandemic, will only serve to strengthen the importance of the New Zealand Fintech sector as more tech companies and investors seek opportunities,” he said.
“In addition, the constant flow and high cost of implementing global financial regulations has provided a robust revenue stream for the sector, as well as the potential for further exciting innovation and entrepreneurship. As a result of its exceptional growth in the sector, it’s also been at the forefront of investment and M&A activity, particularly over the past two years.”
There were fintech companies in the TIN rankings in and between them they generated a combined $. billion in revenue, or .% of the total TIN revenue. The annual TIN Report benchmarks the country’s top high-tech companies and their global impact.
Shanahan said total offshore revenues for these companies was $. billion and grew by % in the financial year.
TIN expects toal global revenues for NZ Fintech companies to top $bn for the financial year to March .
The fintech sector’s growth in was $. million; a % increase on the previous year, with Wellington-based accounting software company Xero accounting for more than % of sector revenue.
Unlike the TIN, double digit growth was seen across all company revenue bands. Growth was highest for those companies with revenues between $ – $ million which increased by .%.
Growth in overseas revenue for TIN Fintech companies has increased by .% and is significantly higher than the average TIN export growth rate of .%.
The largest export market was Australia, generating revenue of $ million; an increase of $ million or .%.
TIN Fintech companies increased their profitability EBITDA by .% in , with EBITDA representing .% of revenue the second highest of all TIN secondary sectors and higher than the TIN average of .%.
Fintech companies grew their workforce by over people in ; representing growth of .% which is more than double the TIN average of .%
The six publicly-listed Fintech companies account for two thirds of the TIN Fintech company revenues, with Xero and Pushpay’s revenues of $. million and $. million together contributing .%.
The Fintech sector has the second highest average annual wage at over $,; .% higher than the TIN average of $,.
Total wages and salaries for Fintech companies account for .% of revenue, higher than the TIN average of .%.
The Fintech sector increased its investment in research and development R&D by .% to be .% of revenue, aided by the Government’s Research and Development Tax incentive.
