Authorised Deposit-Taking Institution (ADI) in Australia: 2025 Guide

Australia’s Authorised Deposit-Taking Institutions (ADIs) aren’t just banks—they’re the safe keepers of your money. With 2025 seeing regulatory tweaks and heightened consumer awareness, understanding what an ADI is has never been more important for every Aussie saver and borrower.

What Is an ADI? The Pillar of Safe Banking

Authorised Deposit-Taking Institutions (ADIs) are financial institutions licensed by the Australian Prudential Regulation Authority (APRA) to accept deposits from the public. The term covers traditional banks, credit unions, and building societies. If you’re depositing money with an ADI, you’re benefiting from some of the world’s strongest banking protections.

• Banks: The major and regional players you know—Commonwealth Bank, Westpac, NAB, ANZ, and more.

• Credit Unions: Member-owned institutions focused on community banking.

• Building Societies: Smaller, often regionally focused, with a history in home lending and savings products.

In 2025, the landscape of ADIs continues to evolve, with new digital banks gaining APRA approval and traditional players enhancing digital services to compete.

ADIs and Your Money: The Financial Claims Scheme (FCS) in 2025

One of the biggest perks of banking with an ADI is the government-backed Financial Claims Scheme (FCS). If your ADI fails, the FCS guarantees up to $250,000 per account holder, per institution. In 2025, this cap remains unchanged, but there’s been a renewed push to ensure consumers know their entitlements, especially as fintechs and neobanks become more prevalent.

Key FCS facts for 2025:

• Coverage: All savings, transaction, and term deposit accounts held with ADIs are covered.

• Speed: Payouts are promised within seven days of an ADI failure, as reaffirmed by recent APRA statements.

• Eligibility: Only deposits with licensed ADIs (not payment platforms or non-bank lenders) are protected.

With the rise of digital wallets and buy-now-pay-later services, it’s crucial to check whether your funds are held with an ADI or a non-ADI entity.

Regulatory Updates: What’s Changed for ADIs in 2025?

Regulation of ADIs is an ever-evolving space. Here’s what’s new and noteworthy in 2025:

• Stricter Licensing for Digital Banks: Following the lessons of failed neobanks in previous years, APRA has tightened entry requirements for new ADIs, with a focus on sustainable funding models and robust risk controls.

• Open Banking Expansion: Open banking rules now require ADIs to provide even more data sharing options for customers—making it easier to compare products and switch providers securely.

• Climate Risk Disclosures: All ADIs must now report climate-related risks and exposures, aligning with global best practices and APRA’s 2025 sustainability mandates.

For everyday consumers, these changes mean stronger institutions and more transparency around who’s holding your money and how they’re managing risks.

How to Make the Most of ADI Protections

Choosing an ADI is about more than just picking a bank with a big brand. Here’s how you can maximise the benefits of ADI status in 2025:

• Check the APRA Register: Before opening an account, confirm your bank, credit union, or building society is listed as an ADI on the official APRA website.

• Split Large Deposits: If you have more than $250,000 to deposit, consider spreading your money across multiple ADIs to ensure all of it is protected by the FCS.

• Review Digital Providers: Many fintechs partner with ADIs to hold customer funds—but always read the fine print to confirm your money is covered.

Example: In 2025, a growing number of Australians use digital wallets linked to ADIs. If you store $100,000 in a neobank that’s an ADI, you’re covered. If your money is with a wallet provider that isn’t an ADI, you could be at risk if the provider fails.

The Bottom Line: ADIs Remain a Safe Bet for Australian Savers

In a fast-changing financial world, ADIs continue to provide the bedrock of trust, stability, and government-backed security for Australian depositors. Whether you’re considering a high-interest savings account, taking out a home loan, or exploring new digital banking options, knowing your institution’s ADI status is essential for peace of mind in 2025.