When Australians take out a mortgage, invest in shares, or open a high-interest savings account, chances are a financial intermediary is working in the background. In 2025, the role of these middlemen—think banks, brokers, fintech platforms, and credit unions—is more significant than ever. But what exactly do financial intermediaries do, and how are they changing with new technology and regulation?
Understanding Financial Intermediaries: More Than Just Middlemen
A financial intermediary acts as a bridge between people who have money (savers and investors) and those who need money (borrowers and businesses). Traditionally, this means banks and credit unions, but the scope has expanded to include mortgage brokers, robo-advisors, peer-to-peer lending platforms, and even superannuation funds.
- Banks: Pool deposits and lend to individuals and businesses.
- Brokers: Match borrowers with lenders, or investors with investment products.
- Fintech Platforms: Use technology to connect savers and borrowers directly, often at lower cost.
- Superannuation Funds: Invest your retirement savings in a diversified portfolio.
Without intermediaries, the financial system would be less efficient, more expensive, and riskier for everyone involved.
2025 Policy Updates: New Rules, New Opportunities
This year, Australia’s financial landscape has been shaped by several key policy changes:
- Open Banking Expansion: The Consumer Data Right (CDR) now covers more product categories, allowing fintechs and brokers to offer more tailored financial products and comparisons.
- Mortgage Broker Best Interests Duty: Strengthened ASIC enforcement means brokers must prioritise borrowers’ needs, not just lender commissions.
- Buy Now, Pay Later (BNPL) Regulation: ASIC’s new licensing regime brings BNPL providers under the same responsible lending rules as traditional lenders, increasing transparency for consumers.
- Superannuation Fund Transparency: APRA’s 2025 requirements mean funds must provide clearer disclosure on fees, investment performance, and risks, making it easier for Australians to compare options.
These updates aim to enhance competition, protect consumers, and make the system fairer. For example, open banking lets Australians share their financial data with third-party apps, making it easier to get a better home loan deal or manage spending.
How Financial Intermediaries Impact Your Everyday Finances
Whether you’re buying your first home, investing for retirement, or managing business cash flow, financial intermediaries can save you time, money, and stress. Here are some real-world examples from 2025:
- First Home Buyers: Many rely on mortgage brokers who use advanced comparison tools powered by open banking to secure competitive rates and navigate government incentives like the First Home Guarantee.
- Small Businesses: Digital lenders now offer fast, unsecured loans using AI-driven risk assessment, thanks to real-time access to business bank account data.
- Everyday Investors: Robo-advisors, such as Stockspot and Six Park, automatically build and rebalance low-fee portfolios, making investing accessible and transparent.
The right intermediary can help you:
- Get better rates on loans and deposits
- Reduce fees and avoid hidden costs
- Access expert advice or automated financial planning
- Protect your interests when dealing with complex products
The Future: Digital Disruption and Consumer Power
Looking ahead, technology will continue to transform the financial intermediary sector. Expect more Australians to use digital wallets, instant payments via the New Payments Platform (NPP), and AI-powered financial advice. Regulatory focus on data security and ethical AI will ensure consumer protection keeps pace with innovation.
For consumers, this means more choice, greater convenience, and (ideally) lower costs. But it also means staying informed and aware of how your data is used, and choosing intermediaries with transparent business models and strong reputations.
