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RSM and FinTech Australia released the FinTech Annual Census 2026, which found that 39% of Australian fintechs now generate revenue internationally.
The findings point to a sector that has moved beyond its early startup phase. Among respondents, 66% reported more than $1 million in annual revenue and 47% said they are already profitable. More than half (54%) said their valuations are between $5 million and $100 million.
At the same time, the census describes a split market. Established firms are increasingly funding growth through revenue, while earlier-stage businesses face tougher conditions as capital becomes more concentrated in a small number of deals.
More than 70% of pre-revenue and pre-profit fintechs said they are struggling to raise funds. Of the AUD $1.7 billion invested in Australian fintech in FY26, 91% went to the top 10 deals, according to data from Triple Bubble and Cut Through Venture.
Payments remains the largest part of the sector, with 31% of respondents operating in that area. Across the industry, 67% said they primarily run a business-to-business model.
Two-speed market
For profitable fintechs, regulation emerged as the main hurdle, with 53% saying Australia's regulatory environment inhibits growth. Policy settings were also a broader concern, especially around the Research and Development Tax Incentive and capital gains tax.
About 56% were concerned about changes to the Research and Development Tax Incentive, while 61% said retaining the 50% capital gains tax discount would benefit their business. Another 42% called for clearer guidance on eligibility for software research and development.
Mathavan Parameswaran, Partner at RSM, said the results show a sector that is expanding but still faces structural constraints.
"The Australian fintech sector is entering a new phase of maturity. It is no longer defined solely by early-stage startups and is increasingly characterised by profitable, scalable businesses delivering meaningful productivity gains across the economy. With almost four in ten fintechs already generating overseas revenue, and many more pursuing international growth, the opportunity is significant. However, the next generation of innovators needs access to capital and regulatory certainty to continue building a globally competitive fintech sector that drives productivity and jobs," Parameswaran said.
Expansion plans
International growth remains a clear priority for many respondents. Alongside the 39% already earning revenue abroad, a further 23% said they are pursuing overseas expansion.
The United Kingdom, the United States, and New Zealand remain the most common target markets, but Southeast Asia is gaining prominence. Some 46% ranked the region, including Singapore, among their top three expansion markets.
Despite that overseas focus, Australia remains the main market for 96% of respondents. That suggests local demand still provides the base from which most firms are trying to scale internationally.
The census also points to continued hiring and technology investment. Some 59% of fintechs said they plan to increase headcount, and 63% of those hiring expect to do so locally.
Artificial intelligence featured strongly in the responses. Nearly a quarter of fintechs (24%) said AI is core to their business model, while 94% plan to invest in AI over the next 12 months. A further 41% said they already have AI in production.
Other areas attracting investment include APIs and open banking (56% of respondents), cyber security (50%), and anti-money laundering and know-your-customer technology (45%).
Funding pressure
The census suggests many fintechs still depend on founder-led finance. Some 72% said founders were a source of funding, while 33% had backing from angel investors and 28% had raised money from friends and family. Venture capital was less common, with 24% reporting VC funding.
Sarah Gorman, Chair at FinTech Australia, said the data shows a widening divide within the sector.
"The census tells an important story about the growth and ambition of Australian fintech. We're seeing a generation of businesses generating meaningful revenue, creating jobs and competing internationally. But we're also seeing a sector operating at two speeds, with a concerning gap between established players and the next wave of innovators, who are navigating an increasingly complex policy environment and growing pressure on capital from changes to CGT and the RDTI.
"Our members range from early-stage startups and high-growth fintechs to established global businesses, and we need policy and regulatory settings that allow innovation to thrive, attract talent and investment, and support the full journey from startup to scale-up, successful exit and returns to investors. That flywheel is how we build a stronger domestic fintech sector, compete internationally and attract the next wave of capital and innovation into Australia, ultimately delivering better outcomes for Australian consumers and businesses.
We're also seeing particular concern that many financial services policies are designed without considering their impact on fintech," Gorman said.