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This article is general information only and does not constitute legal or financial advice. For your specific situation, consult a qualified financial adviser or legal professional.
Nearly 94% of Australians have concerns about using artificial intelligence with their bank, according to recent research from RFI Global. That figure — covering privacy worries, accuracy fears, and the loss of human support — sits awkwardly next to the fact that weekly mobile banking usage has jumped from 42% to 68% in just six years. Australians clearly want digital convenience, but they’re not ready to hand over the reins entirely. Here’s what you actually need to know.
The Australian financial sector is being reshaped by three forces at once: the rise of AI and digital tools, the retreat of the first wave of neobanks, and a regulatory push around open banking, BNPL, and climate risk. Each trend pulls in a different direction. What works for a Big Four bank may not suit a fintech startup, and what consumers say they want — more human support — doesn’t always match what they do. This isn’t a simple story of disruption replacing tradition. It’s more layered than that, and worth understanding before you make any decisions about where to put your money or how to build a financial product.
What the shift in Australian banking actually means for you
The term you’ll hear most often in this conversation is open banking. It’s the framework — powered by the Consumer Data Right — that lets you share your banking data securely with other providers. Think of it as the plumbing that makes comparison tools, budgeting apps, and switching services actually work. Without it, every new fintech has to rebuild the connection from scratch.
What I tend to notice is that the people who benefit most from these changes aren’t necessarily the early adopters. They’re the ones who wait until the tools are proven, then use them to cut costs or find better rates. That’s a sensible approach when the landscape is still shifting.
Why the tension between trust and technology matters right now
The numbers tell a story of hesitation. RFI Global found that 37% of Australians worry about privacy when it comes to AI in banking, 30% are concerned about accuracy, and 29% fear losing human support. Yet at the same time, more than half of Australians say they’d be open to using AI for product comparison. That’s not a contradiction — it’s a condition. People want the benefits of smarter tools, but they want safeguards in place first.
Consider a scenario where you’re comparing home loans. An AI tool could scan dozens of products, factor in your spending patterns, and recommend a lender in seconds. That’s useful. But if the tool gets the comparison wrong — or shares your data without clear consent — the cost is higher than a bad rate. This is where the hybrid model matters. RFI’s research shows that one in five Australians say a mix of AI and human assistance would increase their engagement. The technology works best when there’s a person to check the output.
The demographic split is worth noting too. Younger Australians, particularly those under 35, are far more comfortable with digital-only tools and BNPL services. Older cohorts tend to value branch access and face-to-face advice. Banks are now trying to serve both groups with the same platform, which creates tension in product design. A single app can’t be everything to everyone.
For businesses building financial products, this means the winning approach isn’t the most advanced technology. It’s the one that earns trust first. A future-proof business strategy in this environment has to account for both the technical capability and the human element.
Where banks and fintechs are getting it wrong
Overinvesting in AI without fixing the data foundation first
Deloitte’s outlook for 2026 warns that agentic AI — systems that can act independently — depends entirely on having AI-ready data. That means data that’s accurate, timely, broad, and securely governed. Many institutions are rushing to deploy AI tools without cleaning up the underlying data. The result is faster decisions built on flawed information. A robo-advisor that recommends investments based on outdated spending patterns isn’t helpful — it’s dangerous.
Treating neobanks as a solved problem
The first wave of Australian neobanks largely receded. Volt Bank, Xinja, and 86 400 all exited or were absorbed. Only a few remain, like Up (owned by Bendigo and Adelaide Bank) and Judo Bank (focused on business lending). But writing off the challenger model entirely misses the point. Up achieved a Net Promoter Score of +56.3 in 2025, making it the most recommended non-major consumer bank. The legacy of these neobanks is that they raised the bar for user experience across the entire sector. Incumbents that ignore that standard are vulnerable to the next wave.
Ignoring the regulatory shift on BNPL and climate risk
Buy now, pay later services are now subject to stricter ASIC oversight, meaning providers must conduct responsible lending checks. For consumers, this changes the experience — no more instant approval without a credit check. For businesses, it means compliance costs rise. At the same time, climate risk disclosure requirements have tightened for banks and super funds. Institutions that haven’t built systems to track and report on environmental exposure are already behind.
Underestimating the threat from stablecoins and tokenised deposits
Deloitte notes that stablecoins backed by US legislation could impact deposit flows and challenge traditional payment rails. Banks need to decide whether to issue, custody, process, or partner with tokenised deposits and programmable money. This isn’t a distant possibility — it’s a strategic decision that needs to be made now. Waiting to see what happens means ceding ground to non-bank competitors.
→ Scroll right to see all columns
| Trend | Current State | What’s Changing |
|---|---|---|
| AI in banking | 94% concerned; only 10% use it | More than half open to using AI for product comparison |
| Neobank adoption | 6% of consumers hold an account | Several exited; remaining players set UX standards |
| Mobile banking | 68% use weekly (up from 42%) | Primary interface for most Australians |
| BNPL usage | 30%+ of under-35s use daily | Now regulated as credit under ASIC |
One area where I see consistent missteps is in how banks communicate these changes. They launch new features — in-app card controls, account switching without closing accounts — but don’t explain why they matter. A tool that helps you manage your money is only useful if you know it exists and trust it enough to use it.
How to navigate the changing financial landscape in Australia
Understand what open banking actually lets you do
The Consumer Data Right (CDR) lets you authorise accredited third parties to access your banking data. This means you can use a single app to see accounts from multiple banks, compare loan products based on your actual transaction history, and switch providers without manually transferring direct debits. The process works like this: you give consent through the app, the bank releases your data via secure API, and the third party uses it to provide a service. You can revoke access at any time. The key is to use only CDR-accredited providers — check the ACCC register before signing up.
Evaluate digital tools by their data practices, not just their features
When choosing a budgeting app, investment platform, or comparison tool, look beyond the interface. Ask what data it collects, how it’s stored, whether it’s shared with third parties, and what happens if you close your account. The best tools are transparent about these details. A robo-advisor that uses AI to recommend investments should be able to explain its logic in plain language. If it can’t, the accuracy concerns that 30% of Australians cite become very real. For businesses building these tools, investing in a platform for AI-driven content and ads can help communicate complex features clearly to customers.
Prepare for the tokenisation and stablecoin shift
Tokenised deposits and stablecoins represent programmable money — digital currency that can move automatically when conditions are met. For businesses, this could mean instant settlement of invoices without waiting for bank processing. For consumers, it could mean faster international transfers with lower fees. The technology exists now. What’s missing is the regulatory framework and the infrastructure. Banks are deciding whether to issue their own tokenised deposits, custody third-party tokens, or partner with existing platforms. If you run a business that handles cross-border payments or high transaction volumes, it’s worth watching how the Big Four — Commonwealth Bank, Westpac, NAB, and ANZ — respond. Their choices will shape the infrastructure you’ll use.
Use BNPL and alternative credit with full awareness of the new rules
BNPL services like Afterpay and Zip Co are now regulated under the same responsible lending obligations as credit cards. This means providers must check your ability to repay before approving a purchase. For users, this changes the experience — you may face credit checks and limits based on your financial situation. The upside is better consumer protection. The downside is that the frictionless experience that made BNPL popular is gone. If you use BNPL regularly, treat it as credit, not a convenience feature. Track your repayment schedule and avoid stacking multiple purchases across different providers.
Build a hybrid approach to financial management
The research is clear: most Australians want both digital tools and human support. For your personal finances, this might mean using an app to track spending and automate savings, but consulting a human adviser for major decisions like home loans or retirement planning. For businesses, it means offering digital self-service options alongside access to real people when things get complex. The hybrid model isn’t a compromise — it’s the most practical response to a sector that’s changing faster than most people can keep up with. A business launching in this environment should plan for both channels from day one.
Frequently asked questions about the future of Australian banking
Will neobanks eventually replace the Big Four? ▾
Is my data safe with open banking? ▾
What happens to BNPL now that it’s regulated? ▾
How will AI change my banking experience in the next two years? ▾
Should I switch to a digital-only bank? ▾
What is tokenised money and should I care? ▾
The real opportunity lies in the middle ground
The future of Australian banking isn’t a choice between human and digital, or between incumbents and challengers. It’s a messy middle where both coexist, and the winners will be the institutions and consumers who navigate that middle ground well. For you, the practical step is to start using open banking tools to compare your current products — home loan, credit card, savings account — against what else is available. You might find a better rate or a feature you didn’t know existed. That’s the point of all this disruption: not to replace everything, but to give you more control over what you already have.
Remember: this article is general information only. For advice on your specific financial situation, speak to a qualified financial adviser.
If this was useful, you might also want to read Rethinking Retirement: Innovative Strategies for Financial Freedom in Australia.
Sources and Further Reading
How to Scale a Small Business in Australia Without Massive Capital — Practical strategies for growing a business in a rapidly changing financial environment.
RFI Global (2025). The Future of Financial Services in Australia: Five Data-Driven Trends. 🔗
Deloitte (2025). Banking and Capital Markets Outlook. 🔗
Cockatoo (2025). Financial Institutions in Australia. 🔗
Garut Trading (2026). Fintech Revolution in Australia 2026: How Banks Will Evolve. 🔗
