Authorised Deposit-Taking Institution (ADI) in Australia: 2026 Guide

An Authorised Deposit-Taking Institution (ADI) is a financial institution that has been granted a licence by APRA to accept deposits from the public. This group includes:

• Banks: The large and regional banks you see on high streets and online.
• Credit Unions: Member-owned organisations that focus on community banking and often offer competitive rates.
• Building Societies: Institutions with a history in home lending and savings, often with a regional focus.

All ADIs must meet strict regulatory standards to ensure they operate safely and soundly. In 2026, the ADI landscape continues to evolve, with new digital banks entering the market and established players expanding their online services.

The main reason to check your provider’s ADI status is protection. When you deposit money with an ADI, you benefit from government-backed safeguards that are not available with non-ADI financial service providers.

The Financial Claims Scheme (FCS)

A key protection for depositors is the Financial Claims Scheme (FCS). The FCS is a government guarantee that covers deposits held with ADIs. If an ADI fails, the FCS provides a safety net for eligible deposits up to a set limit per account holder, per institution.

• Coverage: The FCS covers savings, transaction, and term deposit accounts held with ADIs.
• Limit: There is a cap on the amount covered per account holder, per ADI. If you have more than this limit, only the amount up to the cap is protected.
• Eligibility: Only deposits with licensed ADIs are protected. Funds held with non-ADI entities, such as some payment platforms or non-bank lenders, are not covered by the FCS.

This means that if your bank, credit union, or building society is an ADI and something goes wrong, your eligible deposits are protected up to the government’s limit.

Not all financial service providers in Australia are ADIs. Some fintech companies, digital wallets, and buy-now-pay-later services are not licensed as ADIs. This distinction is important:

• ADIs: Can accept deposits and are subject to APRA’s prudential regulation and the FCS.
• Non-ADIs: May offer financial services but do not have the same regulatory oversight or deposit protections.

Before depositing money or using a new financial service, check whether the provider is an ADI. This is especially important as more Australians use digital wallets and new financial apps.

The regulatory environment for ADIs continues to change. In 2026, several developments are shaping how ADIs operate and how consumers interact with them:

Stricter Entry Requirements for New ADIs

APRA has increased scrutiny of new digital banks and neobanks, focusing on their funding models and risk management. This aims to ensure that new entrants are financially sound and able to protect depositors’ interests.

Open Banking Expansion

Open banking rules have expanded, requiring ADIs to provide more options for customers to access and share their financial data securely. This makes it easier for consumers to compare products and switch providers if they find better options.

Climate Risk Reporting

ADIs are now required to report on climate-related risks and exposures. This move aligns with global trends and aims to increase transparency around how financial institutions manage environmental risks.

These changes are designed to strengthen the financial system and provide more transparency and choice for consumers.

Before opening an account or depositing a significant sum, it’s wise to confirm your provider’s ADI status. Here’s how you can do this:

• APRA Register: The official APRA website maintains a public register of all licensed ADIs. Check this list to confirm your bank, credit union, or building society is authorised.
• Provider Disclosures: Most ADIs clearly state their status in their product information and on their websites. Look for references to being an "Authorised Deposit-Taking Institution" or "ADI".

If you’re unsure, contact the provider directly and ask about their ADI status before proceeding.

Understanding ADI protections can help you make smarter decisions about where to keep your money. Here are some practical tips:

Spread Large Deposits

If you have more than the FCS cap to deposit, consider spreading your funds across multiple ADIs. This ensures that all your money remains within the protected limit at each institution.

Review Digital Providers Carefully

Many fintechs and digital wallet providers partner with ADIs to hold customer funds. However, always check the details—if your money is held with a non-ADI, it may not be covered by the FCS.

Example: If you store $100,000 in a digital bank that is an ADI, your deposit is protected under the FCS. If you use a wallet provider that is not an ADI, your funds may not have the same protection if the provider fails.

Consider Your Needs

When choosing between banks, credit unions, and building societies, consider factors such as customer service, product range, and digital features. All ADIs offer the same basic deposit protections, so you can focus on what matters most to you.

ADIs remain central to Australia’s financial system. Whether you’re opening a high-interest savings account, taking out a home loan, or exploring new digital banking options, ADI status is a key indicator of safety and reliability.

With the continued growth of digital banking and financial technology, Australians have more choice than ever. However, the core protections offered by ADIs—especially the FCS—remain a crucial safeguard for your savings.

In 2026, Authorised Deposit-Taking Institutions continue to provide a strong foundation for Australian savers and borrowers. By understanding what an ADI is, how deposit protections work, and how to check your provider’s status, you can make confident decisions about where to keep your money safe. As the financial landscape evolves, ADIs remain a reliable choice for security, transparency, and peace of mind.