Open Source in Australian Finance: Trends, Policy, and Opportunities (2025)

Open source software has long been the backbone of the internet, but in 2025, it’s rapidly becoming the engine behind Australia’s most innovative financial products and services. As the finance industry faces growing pressure to deliver transparency, lower costs, and digital agility, open source is moving from the periphery to centre stage.

Why Open Source Matters in Australian Finance

In a sector where security, compliance, and customer trust are non-negotiable, open source might sound risky. But today, the world’s largest banks and nimblest fintechs are betting on open source to power everything from payment systems to risk analytics and customer platforms. Here’s why:

• Cost Efficiency: With open source, financial institutions avoid costly software licences and vendor lock-in, freeing up budgets for innovation.
• Transparency and Security: Open codebases allow for community scrutiny, rapid bug fixes, and strong security—a top concern for banks handling sensitive data.
• Interoperability: Open standards make it easier for banks, fintechs, and regulators to share data and integrate systems, especially as Australia’s Consumer Data Right (CDR) continues to expand.

2025: The Regulatory Push for Open Source

This year, open source has taken on new importance thanks to updates in Australia’s regulatory and policy landscape:

• Consumer Data Right (CDR) Expansions: The ACCC and Treasury have updated CDR rules, mandating greater data sharing and interoperability—areas where open source APIs and frameworks thrive.
• APRA’s CPS 234 Update: Revised cybersecurity standards now recognise open source best practices as valid controls, provided institutions implement rigorous governance.
• Digital ID and Payments: The Reserve Bank’s roadmap for faster payments and digital identity verification is built on open protocols, encouraging banks to adopt open source infrastructure for compliance and innovation.

For example, in 2025, several major banks—including NAB and Westpac—publicly committed to open banking platforms using open source standards, making it easier for Australians to switch providers and access new fintech apps.

Real-World Impact: How Open Source Is Used in Aussie Finance

Open source is far more than Linux servers and web browsers—it’s now core to how financial products are built and delivered. Here’s what’s happening in Australia:

• Banking-as-a-Service (BaaS): Local fintechs are launching BaaS platforms built on open source frameworks like Kubernetes and Open Banking APIs, slashing time-to-market for new digital banks.
• Risk and Compliance Automation: Open source tools such as Apache Kafka and Airflow are helping financial institutions automate data pipelines, reporting, and regulatory compliance.
• Customer-Facing Innovation: From chatbots to mobile banking apps, developers are leveraging open source libraries for rapid prototyping and robust security features.

One standout is Volt Bank’s 2025 relaunch, which is underpinned by an entirely open source core banking system. This move has enabled Volt to iterate faster, reduce costs, and offer more customisable products to customers than legacy rivals.

What’s Next? The Challenges and Opportunities Ahead

While open source offers huge benefits, it’s not without hurdles. Australian financial institutions must invest in upskilling teams, maintaining code hygiene, and contributing back to the open source community to avoid security and compliance pitfalls.

Looking ahead, the trend is clear: open source will be central to everything from artificial intelligence in lending to the secure sharing of digital identity. As the regulatory focus on transparency and interoperability grows, so does the opportunity for financial services to innovate and collaborate using open standards and shared code.