Fintech is the unification of the word “finance” and “technology” into a single term. It is a term that is used when the financial services of a company are leveraged by the organized introduction of technology. The merit of employing technology is reflected in the manifestation of various tech categories such as Wealthtech, Insurtech, and Edtech.

It has been observed that change is inevitable for the survival of the best. The biggest disruptors in the market have always been those who are servient to change.

Financial companies, just like other forms of economic enterprises must evolve and adapt over time. For example, if a bank does not offer online banking in 2021, it is unlikely to attract any customers. Fintech is the future of financial services and a part of the worldwide innovation boom.

Therefore, Fintech is a necessary component of any financial institution. Over the years, Fintech has penetrated the world of finance at different horizons.

Below is the list of different types of Fintech that a bank may (or rather must) choose to employ:

  • Mobile Apps
  • Online Banking
  • Electronic Statements
  • Automated Investing


In recent years, Fintech on successful acceptance in the world of Finance has personified in the following forms.

  • Blockchain
  • Artificial Intelligence & Machine Learning
  • Internet of Things (IoT)


Over the years, Australia has held a laudable Fintech presence well above the magnitude of its share in the pie of the global fintech area. This “early adopter” attitude comes as no surprise because financial services contribute up to 40% of its economy.

On recognizing the catalytic impacts of Fintech and its potency to unleash a new era of competition, the leading Fintech companies in Australia have collectively held that Australia’s fintech start-up industry has become more organized and more demanding than ever before.

This acknowledgment of significance by the Australian economy has initiated the Government (through the Treasury) to review the regulatory architecture of the Australian Payments system to ensure that the construction of law supports continued innovation.

With the impact of Covid-19, Australian Fintech has found a great opportunity to reshape and advance consumer satisfaction due to the emergence of the “Buy now, Pay later” sector. With over 800 Fintech companies marking their presence throughout the Australian territory, the tie-up with key partner nations such as UK and Singapore has paced the industrial growth.

Interestingly, the Australian Fintech sector has added more than 100 new fintech in 2020 and took the country by storm with a significant portion of fintech showing cryptocurrency and neo banking as its principal mode of interest, showcasing its malleability to adapt to the societal needs.

Fintech Australia estimates that the industry has grown from a $250 million industry in 2015 to $4 billion in 2021.

As per 2021 Global Fintech Rankings, Findexable- Australia has gained two places in global rankings to sixth place and came second in Asia pacific. In fact, leading Australian Fintech players Afterpay and Zip have expanded their business internationally thereby, growing the global community.

Based on the data available to date, we can conclude that there exists a vibrant fintech culture in Australia. However, there is no specific regulatory framework to deal with Robo-advice or other types of automated investing, so as per the existing regulations, the participants must fit into an existing regime.

Some special assistance offered by the Australian Legal departments include

  • Eligible Investments for Startups (Early-Stage Innovation Companies)
  • Eligible Venture Capital Limited Partnerships (Favourable Tax Treatments)
  • R&D incentives for Small Companies


The most interesting growth in the industry is that ASX has been growing plans to adopt a blockchain-based technology for its clearing and settlement systems process to replace its current CHESS system. The ASX is currently performing an Internal Analysis and testing of this technology with specific customer development workspaces and is currently scheduled to be implemented by April 2022 (with provision up to April 2023, when required).