Australia is well-positioned to lead the next wave of financial innovation — but only if industry and regulators move together with urgency. That was the dual message delivered by ASIC Chair Joe Longo (pictured), as he launched new research into fintech and regtech trends and addressed the Tech Council of Australia.
The research, commissioned by ASIC and conducted by the Digital Finance Cooperative Research Centre, documents how artificial intelligence is becoming embedded across everyday financial operations — including credit underwriting, claims processing, portfolio management, and disclosure.
Longo, who will step down as ASIC chair this May, drew on international examples to illustrate the stakes. In the United States, insurtech company Lemonade uses machine-learning models to process claims in under three seconds. In Australia, by contrast, complaints about motor vehicle insurance claims handling delays have surged.
On financial advice, he pointed to the scale of the challenge — maintaining current advice coverage in Australia would require adviser numbers to more than double by 2055 — and argued that technology offers a way through.
“It is clear that innovation can significantly improve productivity in our financial system, boost Australia's economy, and lead to better consumer experiences,” Longo said.
The research paints a broadly positive picture of Australia's starting position. The country's New Payments Platform processed more than 1.82 billion real-time transactions in 2025 alone, and Australia's buy now pay later sector — pioneered by Afterpay — is cited as a global benchmark.
On venture capital, Australian startups raised more than $5 billion in 2025, the third best year on record, and for every $1 billion invested since 2000, Australia has produced 1.22 unicorns — a higher ratio than any other country, including the United States.
But Longo was candid that strengths in some areas mask gaps in others, and that complacency is a genuine risk. Only around half the market participated in ASIC's recent tokenisation survey, with just one third providing detailed feedback — a sign, he suggested, that some participants remain reluctant to engage with innovation at all.
“We cannot let complacency chart our future. That is why we must continue to work together to break down barriers around innovation. This challenge is bigger than any of us alone can tackle,” he said.
ASIC's response to that reluctance is to make engagement easier, not to retreat from it. Longo was unambiguous about the regulatory direction: ASIC intends to be a backer, not a blocker, of innovation. The regulator is pushing ahead with its regulatory simplification initiative, exploring pathways from sandbox to licensing for fintechs, and hosting a Financial Markets Innovation roundtable with further research on capital market innovation and tokenisation due in June.
“Good regulation is good for consumers – and good for business,” Longo said, framing principles-based oversight as the approach most likely to enable innovation while protecting consumers.
For brokers, the broader signal is that the tools and platforms shaping credit assessment, client communication, and compliance are entering a period of rapid change. Longo's warning — that Australia risks producing a "lost generation" consigned to a lower standard of living if the country fails to act — was directed at the nation, but the challenge lands squarely in the financial services sector that serves it.
For more information, read the ASIC media release and Longo’s full speech.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
