Australia Plans Tech Push to Unlock Financial Innovation

Australia's top financial regulator is issuing an urgent call to embrace technology that could transform everyday money matters for millions of people.

Outgoing Australian Securities and Investments Commission chair Joe Longo warns the country risks creating a "lost generation" if it doesn't act quickly to adopt financial innovations already taking hold worldwide. His message comes as new research reveals how artificial intelligence is reshaping everything from insurance claims to investment advice.

The changes could make a real difference in people's lives. In the US, insurtech company Lemonade already processes insurance claims in under three seconds using AI. That's a stark contrast to Australia, where complaints about motor vehicle insurance delays have surged recently.

"Imagine how such technology could improve claims handling times following the next hailstorm," Longo told a Tech Council event. For anyone who's waited weeks for an insurance payout after storm damage, that future can't come soon enough.

Financial advice could see an even bigger transformation. The number of financial advisers in Australia has nearly halved since 2018, even as demand keeps growing. Meeting today's advice needs would require adviser numbers to more than double by 2055.

AI-powered platforms like Betterment are already offering automated investment advice at a fraction of traditional costs. That could open up professional financial guidance to people who've never been able to afford it before.

The Ripple Effect

Australia has proven it can innovate. The country gave the world Wi-Fi, cochlear implants, and pioneered the buy now pay later sector that's now used globally. Its real-time payments infrastructure is considered world class.

But maintaining that edge requires constant forward movement. The research found that while Australia leads in some areas, it's falling behind in others. That gap will only widen without action, letting other nations capture the economic benefits.

The shift comes with challenges. Financial services are increasingly delivered through platforms rather than directly by banks and insurers, creating new questions about who's responsible when things go wrong. Many institutions now depend on just a handful of cloud services and digital wallet operators, meaning disruptions could ripple across the entire system.

Longo argues this makes smart regulation more important than ever. Rather than rigid rules for specific technologies, he advocates for principles-based oversight focused on accountability. Good regulation can actually support innovation rather than stifle it.

The message is clear: technology is moving faster than anyone can fully comprehend, and hesitation carries real costs. With the right approach balancing innovation and protection, Australia can ensure its next generation enjoys greater financial access and prosperity rather than less.