Fintech Market Overview

This article does not constitute legal advice.

Lending in Australia


Fintechs that offer consumer credit activities in Australia must hold an Australian credit licence (ACL). Engaging in such activity is regulated by ASIC under the National Consumer Credit Protection Act 2009 (Cth) and related regulations. It's possible a particular fintech service may necessitate both an AFSL and ACL, such as marketplace lending, peer-to-peer lending, or crowd-lending platforms.1

In Australia, the Privacy Act 1988 (Cth) dictates that only credit reporting agencies - organisations who are running businesses of credit-recording - are allowed to collect personal data, store it in credit files and share it with lenders. These credit reporting bodies must adhere to the rules and regulations between using, collecting and disclosing credit information.1

Suppliers of marketplace loan facilities (including peer-to-peer lending) normally will require an AFSL and must abide by the related commitments.1

An ACL and associated obligations will also be required if the provider's products are consumer loans (e.g., loans for domestic, personal, and household use). Similarly, all loans (including business loans that are not regulated under the National Credit Act) are subject to consumer protection provisions under the ASIC Act, including prohibitions on misleading or deceptive conduct. In some cases, peer-to-peer lenders are structured as managed investment schemes, which require registration with ASIC if offered to retail investors.1

Secondary markets for trading loans are generally not restricted; however, their provision, maker, and participants may be subject to licensing requirements.1

It is also common for marketplace lenders to have AML/CTF obligations.1

Payment services in Australia

Fintech in Australia

Fintech in other countries

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