Fintech Market Overview

This article does not constitute legal advice.

Banking in Australia


The regulatory framework that fintech companies must follow encompasses banking, financial services, consumer credit, consumer protection, data and privacy protection, payments and anti-money laundering and counter-terrorism financing regulations. Regulators have imposed various obligations on businesses, including licensing and registration, as well as requirements when it comes to conduct and disclosure.1

No license specifically for fintech exists; however, there are exemptions which may be a good fit for firms to trial their fintech product or service. ASIC provides eligible providers with an extended regulatory sandbox, which offers a 24-month conditional waiver from the obligation to possess an Australian financial services licence (AFSL) to evaluate financial products and services in the local market, as well as an Innovation Hub that offers applicants 12 months of advisory support on licensing and regulation.1

Entities engaged in the act of taking deposits or making advances of money, or providing purchased payment facilities, are required to be licenced by an authorised deposit-taking institution (ADI). The Australian Prudential Regulation Authority (APRA) is the regulator for the authorisation of ADI licenses and its associated supervision. In 2018, APRA unveiled the restricted ADI framework to facilitate the entry of aspiring banking operations into the sector. Within this framework, entities may only carry out a restricted set of business activities for a two-year period as they develop their resources and talents. After this time, they must either transition to a full ADI licence and operate without restriction or exit the industry.1

Any organisation that carries out a banking activity (which also includes certain PPF holders) must be given an ADI authorisation.1

Lending in Australia

Fintech in Australia

Fintech in other countries

  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/australia