Distribution Channels for Financial Products in 2025: What Australians Need to Know

In a world where convenience and choice are king, the way Australians access financial products has never been more dynamic. Distribution channels—the pathways through which banks, fintechs, and insurers bring their products to market—are at the heart of this transformation. From digital-first banking to broker-led mortgage solutions, 2025 is shaping up to be a pivotal year for how money flows in the Aussie economy.

What Are Distribution Channels in Finance?

Distribution channels are simply the methods by which financial products and services reach customers. In Australia, these channels have evolved beyond the traditional branch network to include online platforms, comparison sites, brokers, and even social media. The rise of open banking, regulatory change, and consumer demand for tailored experiences are all accelerating this shift.

Key types of distribution channels in 2025:

• Direct digital platforms: Bank and fintech apps, websites, and embedded finance solutions.

• Third-party intermediaries: Mortgage brokers, financial advisers, and comparison websites.

• Hybrid models: Blending face-to-face service with digital onboarding and support.

2025 Trends: Digital Acceleration and Regulatory Shifts

This year, Australia’s financial landscape is being shaped by several key trends in distribution:

• Open Banking 2.0: Expanded Consumer Data Right (CDR) rules mean more data sharing, empowering consumers to switch products via apps with a few taps. This has intensified competition among lenders and insurers, making digital onboarding a must-have.

• Brokers Still Booming: Despite digital disruption, mortgage brokers now account for over 72% of all new home loan settlements (FBAA, 2025). Regulatory reforms have strengthened disclosure requirements, but brokers’ ability to offer product comparisons and personalised advice keeps them in demand.

• Embedded Finance: Retailers and tech platforms increasingly offer ‘buy now, pay later’, insurance, and even micro-investing products at the point of sale, blurring the lines between financial services and other industries.

• ESG and Ethical Channels: Growing consumer interest in ethical investing has led to the emergence of specialist channels—like green finance platforms and super funds focused on sustainability.

For example, a first-home buyer in 2025 might compare digital home loan pre-approvals via an aggregator app, consult a broker for tailored advice, and sign documents online—never stepping foot in a bank branch.

How Distribution Channels Affect Your Choices

Distribution channels don’t just change how you buy—they influence what you buy, the price you pay, and the service you receive. Here’s how:

• Access and inclusion: Digital channels are making financial products more accessible, especially for regional Australians and younger consumers. However, digital exclusion remains a risk for older Australians or those without reliable internet.

• Price and transparency: Online comparison sites and open banking tools have driven greater price transparency, but it’s still important to check for hidden fees or incentives paid to intermediaries.

• Personalisation: Data-driven distribution channels can offer more tailored product recommendations—think personalised savings accounts or investment portfolios based on your spending habits.

• Regulatory protections: ASIC and APRA continue to monitor and regulate distribution practices, especially for complex products or vulnerable consumers. The Design and Distribution Obligations (DDO) regime, updated in 2025, requires providers to match products with suitable customers, reducing the risk of mis-selling.

Ultimately, the right distribution channel can help you secure a better deal, faster approval, and ongoing support. But with more options comes the need for greater financial literacy and vigilance against scams or conflicts of interest.

What to Watch: The Future of Financial Distribution

The coming years will see even more innovation in how Australians access financial products:

• AI-powered advice: Robo-advisers and AI chatbots are making financial guidance more affordable and available 24/7.

• Super app ecosystems: Platforms integrating banking, investing, insurance, and payments in one place are gaining traction, especially among younger consumers.

• Decentralised finance (DeFi): While still niche, blockchain-based channels for lending and investing are attracting interest from tech-savvy Australians and may become more mainstream as regulation evolves.

For all the promise, the proliferation of channels means Australians should carefully consider where and how they access financial products. Not every channel suits every need, and the best outcomes come from combining digital convenience with trusted advice.