Australia unveils Financial Innovation Strategy for fintech

FinTech Australia has welcomed the federal government's national Financial Innovation Strategy, launched in Melbourne by Assistant Treasurer and Minister for Financial Services Dr Daniel Mulino.

The strategy forms part of the government's response to an independent review of the Enhanced Regulatory Sandbox led by Maha El Dimachki.

FinTech Australia said the plan sets out a national agenda for the financial system, with measures covering regulatory testing, payments, digital assets and data sharing.

Its initiatives include changes to Australia's regulatory sandbox framework, further work on Consumer Data Right reforms, digital assets and payments licensing, and early work on thematic sandboxes in areas such as AI-enabled financial services and digital financial market infrastructure.

The strategy also includes work on options for taxpayers to share Australian Taxation Office-held tax data through the Consumer Data Right, consultation on a new strategic plan for the payments system, and the creation of a Financial Innovation Committee bringing together government, regulators and industry.

FinTech Australia Chair Sarah Gorman said the sector aligned with broader economic and policy goals.

"We've always considered fintech in this country a force for good, an industry that can align with key government objectives such as a more dynamic and competitive economy, trusted data sharing and innovation that benefits consumers," Gorman said.

She said the announcement reflected the need to respond to international change and address obstacles facing the sector.

"Today's announcement acknowledges that we must respond to a rapidly evolving global landscape and shows a willingness to work with the ecosystem to remove the barriers preventing further progress in key areas of fintech.

"We're incredibly proud that the Intersekt fintech festival is hosting this major announcement, and we look forward to working with regulators to implement this strategy," Gorman said.

FinTech Australia Chief Executive Officer Rehan D'Almeida said the strategy could improve coordination between policymakers, regulators and industry participants.

"Maha El Dimachki's review made a compelling case for a broader national strategy and more effective pathways from testing to market. The government has listened and acted. Today's launch is an important response to that recommendation, and the commitment to modernise the sandbox framework is particularly welcome," D'Almeida said.

He said the proposed committee could help identify barriers and align reform work across different parts of government.

"The new Financial Innovation Committee can provide a focal point for identifying barriers early, coordinating interconnected reforms across government and ensuring Australia keeps pace with international developments," D'Almeida said.

D'Almeida said the focus would now shift to delivery, including legislation, regulatory guidance and practical pathways for new products and services to move from testing to market.

"Minister Mulino has signalled that the government is committed to supporting Australia's fintech sector. The test will now be implementation. Australia needs timely legislation and guidance, genuinely proportionate regulation, and programs that allow startups and established firms to test, commercialise and scale new services with confidence.

"Launching the strategy at Intersekt sends a strong signal that industry will be central to this work. FinTech Australia looks forward to working with the government and regulators to turn the strategy into practical outcomes for consumers, businesses and the broader economy," D'Almeida said.

In opening remarks at the event, D'Almeida said fintech now contributed AUD $13.7 billion directly to Australia's GDP and accounted for more than 50,000 jobs nationally.

"It took a decade to get here. Now we have to look to the next one, and it starts with sovereignty: a resilient financial system underpinning Australia's digital economy that is owned and built by Australia.

"To do this, we need government, banks, financial institutions and technology providers building together, starting with pilots and real use cases. Fintechs are ready to participate and lead, and this strategy gives us a clear benchmark against which to hold government, regulators and industry accountable," D'Almeida said.