The 2020 Fintech Australia Census of EY found that 39 percent of local fintech companies already have more than 500 paying customers, up from 27 percent in 2019, while 88 percent plan overseas expansions in the future.

“Fintechs are by definition agile organizations, so they were able to respond quickly to the COVID-19 crisis and make the most of the new opportunities it presented,” said Meredith Angwin, EY fintech advisor.

“As people have adjusted to new ways of working and living during the pandemic, we have seen a significant increase in the use of digital payments and transactions by consumers. At the same time, the buy-now-pay-later sector has expanded apace, both here and abroad.”

However, some 72 percent of fintech companies say that COVID-19 has negatively impacted their ability to raise capital, while 39 percent report that they are not meeting their fundraising expectations.

"It's not all smooth sailing," Ms. Angwin said.

"While the industry continues to face its usual headwinds of regulatory concerns and competitive pressures, it is now also grappling with additional difficulties arising from the pandemic, such as capital tightening and concerns that consumers may revert to the perceived safety of the main institutions operating in the market for their financial services needs in uncertain times.'

However, fintech continues to grow in a number of key areas, including headcount (an average of 10 full-time and two part-time), while 78 percent of fintech is now post-revenue.