Australian superannuation fund First State Super has unveiled plans to plough millions of dollars into fintech startups through a partnership with specialist VC fund H2 Ventures.
The agreement was announced at Sydney innovation hub Stone & Chalk by Australian premier Malcolm Turnbull, who declared: "There has never been a more exciting time to be in fintech."
He pointed to a KPMG report last year which found that $27 billion of big banking revenue could be at risk of being digitally disrupted by new technology.
First State Super has not specified the amount of money its plans to direct towards fintech, saying that it would work closely with H2 Ventures - which is housed at Stone & Chalk - to root out the most promising investment opportunities.
Launched in May, H2 ventures has set out plans to raise a A$10 million war chest to fund the launch of 100 early-stage fintech startups over the next three years.
Setting out its predictions for the sector over the coming year, H2 expects that traditional global banks will provide valuable exit opportunities for canny investors as they seek to protect their business from disruptive startups, a trend that is likely to drive "irrational exuberance" in valuations of some firms.