FinTechNZ recently conducted an export-focused survey to gain a deeper understanding of the needs and challenges faced by our sector. The insights gathered from this survey will help strategically guide our focus. Primarily, this is aimed at building sector capacity to support scaled export growth. Key findings include export trends, core challenges and support needs.
Export trends
A significant 66% of respondents reported that they are currently exporting, with 50% of those targeting Australia or North America. This preference for English-speaking markets is notable but represents a slight decline from last year, likely due to the current macroeconomic challenges.
Core Challenges
Respondents identified several critical challenges hindering their growth:
- Regulatory Compliance
Navigating the complex and varied regulatory landscapes remains a significant hurdle. - Market Understanding
Gaining a deep understanding of target markets is crucial for successful expansion. - Lagging Domestic Ecosystem
A less mature domestic fintech ecosystem can limit growth and innovation. - Networking and Partnering
Building strong connections and partnerships is essential for market entry and expansion.
Support Needs
To help overcome these challenges, the sector is seeking support in several areas:
- Funding Access
Securing funding is vital for growth and scaling operations. - Facilitating Connections
Creating opportunities for networking and partnerships. - Regulatory Compliance Assistance
Help with understanding and adhering to regulatory requirements. - Strategic Market Entry Advice
Guidance on entering and succeeding in new markets.
Addressing the challenges
While our survey did not delve into the underlying causes of these challenges, it is evident that a lack of recognition and strategic focus by the Government is a significant issue. This is especially concerning when we compare the rapid growth and productivity of fintech sectors in other countries, which are now surpassing traditional primary sectors that have reached peak capacity and are experiencing plateauing growth.
We acknowledge the progress made in areas such as CDR legislation and open banking initiatives. However, the impact of these efforts on sector growth will take time to materialise. There is a pressing need for certainty and stability to ensure that we do not hinder the sector just as it is gaining momentum. Recent Government cutbacks have certainly dented sector and investor confidence, which is a very real concern.If you’re not already a member of FinTechNZ, please consider joining us. Learn more here.
