For many Australians, accessing affordable financial services is an expectation—until it isn’t. As we step into 2025, financial inclusion has become a national talking point, with policymakers, banks, fintech startups, and advocacy groups all pushing to break down the barriers that keep millions on the financial fringes. But what does true financial inclusion look like in Australia today, and how are new policies and innovations changing the game?
What Is Financial Inclusion—And Who’s Missing Out?
Financial inclusion means that everyone—regardless of income, postcode, or background—has access to affordable, useful financial products and services. Think basic bank accounts, credit, insurance, and digital payments. In Australia, most people assume these are a given. Yet, according to the 2024 Australian Financial Inclusion Index, over 3 million adults still face some form of financial exclusion, whether due to limited digital access, language barriers, or credit history issues.
- Remote and regional communities: Many Indigenous Australians and rural residents still struggle with branch closures and unreliable internet.
- New migrants and refugees: Establishing credit or even opening a basic account can be daunting without local documentation.
- Low-income earners: High fees and limited product options can push people toward payday lenders or informal borrowing.
2025 Policy Shifts: Aiming for Universal Access
This year, the federal government rolled out a landmark update to the Consumer Data Right (CDR) framework, expanding open banking and simplifying account switching—even for those with thin credit files. The 2025 budget also earmarked $250 million for digital infrastructure in remote regions, aiming to close the gap on digital exclusion by 2028.
Key 2025 initiatives include:
- Mandatory basic accounts: Major banks now offer fee-free, no-frills accounts for concession card holders and First Nations Australians.
- Fintech partnerships: ASIC has fast-tracked licensing for fintechs delivering low-cost remittance and micro-loan services, particularly targeting migrant communities.
- Financial literacy in schools: The national curriculum now includes digital finance modules from Year 7, aiming to boost confidence and capability from an early age.
Real-world example: The rollout of fee-free basic accounts led to a 22% increase in account openings among Indigenous Australians in the Northern Territory during Q1 2025, according to the Australian Banking Association.
Digital Transformation: Opportunities and Risks
Australia’s rapid embrace of digital banking and cashless payments has made banking more convenient—but also risks leaving some behind. The closure of hundreds of physical branches in 2024 and 2025 has hit regional towns and older Australians hardest.
To address this, the government-backed Community Banking Hubs pilot launched in February 2025, providing face-to-face banking services and digital skills training in 50 rural locations.
Meanwhile, digital identity initiatives—like the myGovID expansion—are making it easier for new arrivals and people without standard IDs to open accounts online securely.
- Digital payment adoption: Over 92% of daily transactions are now contactless, but around 1.5 million Australians still prefer cash.
- Alternative credit scoring: Lenders are using open banking data to assess creditworthiness, helping those with no formal credit history access affordable loans.
The Road Ahead: What Needs to Happen Next?
Despite progress, gaps remain. Advocacy groups are calling for:
- Further expansion of community banking hubs beyond the pilot phase.
- Stronger regulation of buy now, pay later (BNPL) services, which often target financially vulnerable users.
- More culturally tailored financial products and multi-language support across digital platforms.
Ultimately, financial inclusion in Australia is evolving fast—but it demands vigilance, collaboration, and ongoing innovation to ensure no one is left behind.
