FinTech Australia raises concerns about targeted Open Banking consultation
FinTech Australia welcomes the Federal Government’s targeted consultation on Open Banking reforms. However, it has flagged concern at a proposed measure to exempt smaller regional banks and credit unions from the regime. Fintech Australia represents over 400 Australian fintechs, many of which serve Australians in regional Australia or who bank with credit unions, who will be impacted.
“This proposal poses a risk to the foundations of Open Banking,” Rehan D'Almeida, CEO of FinTech Australia said. “The power of this pro-competition regime is its universality, which empowers consumers, drives innovation and preserves competition.”
“Creating carveouts is likely to create a two-speed system that forces reliance on less secure data-sharing methods, like screen scraping. Australians deserve a functional open banking system and there are promising signs the government is otherwise close to optimising the policy settings..
“FinTech Australia will be pushing back against this proposal to make it clear that this proposal jeopardises crucial national infrastructure and will hurt disadvantaged members of the community.”
FinTech Australia is seriously concerned that exempting small banks and credit unions would disadvantage these consumers, who would miss out on important efficiency and competition gains as well as the availability of innovative new products through Open Banking, such as novel forms of aid for those in financial hardship.
At Intersekt last month, the Australian Competition and Consumer Commission (ACCC) confirmed this upward trend, reporting that 800,000 Australians had used open banking technology in the six months to July 2025, up 50% from 530,000 consumers from the six months prior.
"We support measures which will make it easier for consumers to participate in open banking and share their own data with organisations of their choice. We therefore welcome the Government's exploration of new ways to streamline consumer consents, as per this latest consultation." D'Almeida added.
“However, a broad rollout ensures we achieve the same high adoption rates, low costs and competition gains seen in other jurisdictions like the UK."
About FinTech Australia
FinTech Australia is the not-for-profit peak industry body for the Australian fintech sector, representing more than 400 companies nationwide. It works to foster a thriving fintech ecosystem by advocating for supportive policy, promoting innovation, and enhancing collaboration between startups, industry and government.
