Regtech in Australia 2025: Compliance, Innovation & Trends

Regulatory technology, or Regtech, is no longer a buzzword in Australia’s financial landscape—it’s a critical tool for businesses navigating an increasingly complex regulatory environment. As 2025 unfolds, Regtech solutions are redefining compliance management, helping organisations cut costs, reduce risk, and respond rapidly to new rules. With ASIC and APRA ramping up expectations and the government investing in digital transformation, Regtech is shaping up as a must-have for Australian financial institutions and beyond.

What is Regtech and Why Does It Matter in 2025?

Regtech refers to the use of technology to help businesses comply with regulations efficiently and effectively. While it originated in the financial sector, its reach now extends to superannuation, insurance, fintech, and even non-financial industries subject to strict reporting and governance requirements. In 2025, this technology is front and centre as regulators demand more transparency and real-time reporting.

• Automation: Regtech automates manual compliance tasks, reducing human error and freeing up staff for higher-value work.
• Data analytics: AI and machine learning spot suspicious patterns and potential breaches faster than traditional reviews.
• Real-time reporting: Cloud-based platforms enable instant submission of compliance data to regulators.

As the cost of compliance continues to rise—Deloitte estimates it now represents up to 10% of operational expenses for some Australian banks—Regtech is emerging as the smart way to stay ahead without blowing the budget.

2025 Policy Updates Accelerating Regtech Adoption

This year, several policy shifts are accelerating Regtech uptake in Australia. The government’s Digital Economy Strategy 2025 has earmarked funding for Regtech pilots, recognising its role in boosting productivity and integrity. Meanwhile, ASIC’s updated Regtech in Action program is driving collaboration between regulators, industry, and technology providers.

Key 2025 developments include:

• Open Banking Expansion: With the Consumer Data Right now covering more industries, Regtech tools are essential for secure data sharing and consent management.
• Anti-Money Laundering (AML) Reforms: New amendments require continuous monitoring, automated transaction reporting, and enhanced customer due diligence, all areas where Regtech excels.
• Climate Risk Reporting: APRA’s climate disclosure guidelines mean financial institutions need Regtech to track and report environmental risks.

These changes are pushing even smaller firms to adopt automated compliance solutions, levelling the playing field and making regulatory adherence more accessible.

Real-World Regtech in Action: Australian Examples

Australian Regtech startups and established firms are making global headlines with their innovations. Here are three ways Regtech is delivering value in 2025:

1. Automated KYC (Know Your Customer): Sydney-based company FrankieOne is helping banks onboard customers in minutes, using AI to verify identity documents and flag potential fraud across multiple jurisdictions.
2. Continuous Monitoring: CUBE, operating in Australia, offers automated rule-tracking, alerting compliance teams the moment a regulation changes—essential for asset managers and super funds juggling obligations across APRA, ASIC, and international regulators.
3. AI-Driven Reporting: Regtech platforms like Arctic Intelligence are using machine learning to assess AML risks, generate custom reports for AUSTRAC, and provide actionable insights for ongoing compliance improvement.

These solutions aren’t just for big banks—fintechs, wealth managers, and even large corporates are integrating Regtech to future-proof their operations.

The Future of Regtech: Challenges and Opportunities

While Regtech delivers clear benefits, adoption is not without hurdles. Integration with legacy systems, data privacy concerns, and the pace of regulatory change are ongoing challenges. However, the opportunities far outweigh the risks:

• Cost savings: Automated compliance can cut costs by up to 50% compared to manual processes.
• Competitive advantage: Firms that embrace Regtech can launch new products faster and enter new markets with confidence.
• Risk reduction: Real-time monitoring dramatically reduces the likelihood and impact of breaches.

In 2025, expect to see Regtech expand beyond finance, with utilities, health, and even education sectors beginning to adopt compliance technology. As Australia cements its position as a Regtech hub, the sector will play a pivotal role in the nation’s digital and economic growth story.