Afterpay slides in global fintech rankings

Tech-darling Afterpay has suffered a slide in the ranking of the world's leading fintech innovators.

The annual KPMG and H2 Ventures FINTECH100 list is a collaboration between the global consulting firm and Sydney-based venture capital investment thought leaders, H2 Ventures, which ranks the top 50 most innovative fintechs and the next fintechs to shake up the global financial services scene.

This year's iteration saw seven Australian fintechs make the cut, including emerging challenger bank Judo Bank, whose notable backers include the likes of Myer Family Investments, Credit Suisse Asset Management and Abu Dhabi Capital Group.

Topping the list of Australian entrants at 32 was Melbourne's Airwallex, which facilitates cross-border transactions through secure payment facilities. It's unicorn status was confirmed this year after a successful Series C fundraising round, which reached USD$100 million and sent its value beyond USD$1 billion. Last year the firm underwent a USD$80 million funding round, reportedly the second-largest in Australian history at the time. Among its backers are Tencent Holdings, Sequoia China, Square Peg Capital and MasterCard.

After an up and down year, Afterpay scraped into the top 50, dropping 21 places from its 2018 ranking to reach 47th.

In June AUSTRAC went after the firm, ordering an audit of its compliance with the Anti-Money Laundering and Counter Terrorism Financing Act (AML/CTF), with a final report due later this month.

At the time Afterpay said it welcomed the opportunity to continue to work constructively and closely with the regulator.

"We are committed to remaining focused on becoming better at what we do," Afterpay said in June.

"We have [proactively engaged with AUSTRAC on our AML/CTF compliance over a number of months, including recent engagement about our intention to conduct an independent review as part of our AML/CTF program.

"We recognise that Buy Now Pay Later is a new and maturing sector not only for our customers, but also for regulators. And we will continue to work closely with AUSTRAC to develop a leading compliance regime specific to our business in a transparent and cooperative manner."

Read more: AfterpayAUSTRACH2 VenturesAbu Dhabi Capital GroupCredit Suisse Asset ManagementKPMGMyer Family InvestmentsSequoia ChinaSquare Peg CapitalTencent Holdings
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