Australia Regtech Market Research Report: Forecast (2026-2032)

Australia Regtech Market Report Key Takeaways:

• Market size was valued at around USD0.87 billion in 2025 and is projected to reach USD1.65 billion by 2032. The estimated CAGR from 2026 to 2032 is around 9.57%, indicating strong growth.
• By Deployment Type, the cloud-based segment holds the largest market share of about 74% in the Australia Regtech Market in 2025.
• By End-User, the BFSI segment seized a significant market share of about 54% in 2025.
• Leading Regtech companies in Australia are FrankieOne, Simple KYC, Advice RegTech SAMI, Compliance Quarter, Adatree, identitii, Arctic Intelligence, Audeamus Risk, LAB Group, KYC Australia, Global Data, base2Services, AML360, Asendium, and Others.

Market Insights & Analysis: Australia Regtech Market (2026-32):

The Australia Regtech Market size was valued at around USD 0.87 billion in 2025 and is projected to reach USD 1.65 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 9.57% during the forecast period, i.e., 2026-32.

Australia’s RegTech Market is positioned for sustained growth as regulatory intensity, digital finance adoption, and enforcement activity continue to rise. Financial institutions, fintech firms, and designated non-financial businesses are facing expanding compliance obligations under regulators such as AUSTRAC, APRA, and ASIC, driving demand for automated, auditable compliance technologies.

Additionally, Australia’s reformed AML/CTF framework will be implemented in stages from 31 March 2026 , expanding expectations around enterprise-wide risk assessments, suspicious matter reporting, and remediation planning. Crucially, “Tranche 2” entities, including accountants and real-estate professionals, will be fully brought into the regime by 1 July 2026 , significantly increasing the number of businesses required to adopt formal compliance systems and digital reporting tools. This expansion materially widens the addressable RegTech user base beyond traditional financial services.

Moreover, parallel prudential reforms, such as APRA’s CPS 230 operational-risk standard effective 1 July 2025, are increasing expectations around third-party risk management and resilience, favoring structured RegTech platforms over manual processes.

Furthermore, government-backed digital initiatives, including the Consumer Data Right, secure cloud policy, and responsible AI standards, are shaping product design toward cloud-native, API-driven, and analytics-enabled compliance solutions. Together, expanding regulation, broader sector coverage, and tougher enforcement position RegTech as essential infrastructure in Australia’s evolving compliance landscape.

Australia Regtech Market Recent Developments:

• 2024 : Adatree launched its Insights product suite, including real-time account verification and balance checks using Open Banking data to help combat fraud and streamline operations.
• 2025 : FrankieOne launched advanced fraud and compliance capabilities through a unified API platform, and in early 2026, the company emphasized digital identity and mobile driver’s licence (mDL) integration ahead of AUSTRAC’s AML reforms.

Australia Regtech Market Scope:

Australia Regtech Market Driver:

Escalating Regulatory Scrutiny & Enforcement Driving Market Demand

Australia’s regulatory environment for financial services and anti-financial-crime compliance is becoming increasingly demanding, directly accelerating the adoption of RegTech solutions. At the center of this pressure is AUSTRAC, which oversees AML/CTF compliance for more than 19,000 reporting entities under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. This broad supervisory remit translates into continuous obligations for customer due diligence, transaction monitoring, and detailed annual compliance reporting, significantly increasing operational complexity for regulated organizations.

At the same time, enforcement activity reinforces the cost of non-compliance. AUSTRAC continues to pursue civil penalty proceedings against entities that fail to meet reporting and risk-management obligations, including actions filed in 2025 for systemic AML/CTF breaches. In parallel, ASIC has sought record penalties, including a USD160 million penalty against ANZ in 2025 for governance and compliance failures . Together, expanding regulation and tougher enforcement make automated, auditable RegTech solutions a necessity rather than an option.

Australia Regtech Market Trend:

Integration of AI & Machine Learning

Artificial intelligence (AI) and machine learning (ML) are becoming central to Australia’s RegTech market as regulators and institutions seek faster, more accurate compliance processes. This shift is driven by rising transaction volumes, complex AML obligations, and increasing financial crime risks. Consequently, RegTech platforms are using ML models to automate KYC checks, detect anomalous transactions, reduce false positives, and prioritize high-risk alerts.

At the same time, regulatory oversight is intensifying. In September 2024, the Australian Government introduced the Voluntary AI Safety Standard, outlining ten principles such as transparency, human oversight, and risk management . These guidelines directly influence how RegTech firms design, test, and deploy AI-based compliance tools. In parallel, AUSTRAC has publicly stated that it uses AI and advanced analytics to enhance the detection of money-laundering and terrorism-financing activities , reinforcing AI’s legitimacy in regulatory supervision.

Moreover, Australia’s domestic AI capability is strengthening. Government data show that AI-related patent filings increased from about 170 in 2015 to over 620 by 2024 , while AI research output more than doubled over the same period. This growing innovation base supports local RegTech development.

Australia Regtech Market Challenges:

Data Privacy, Sovereignty, and Security Risks

Data privacy, sovereignty, and security risks remain a major challenge for the Australian RegTech market because compliance technology directly handles sensitive identity, financial, and transactional data. Additionally, cybersecurity incidents are increasing. For reference, the Office of the Australian Information Commissioner (OAIC) reported 1,113 notifiable data breaches in 2024, a year-on-year increase of about 25% , highlighting rising exposure for cloud-based compliance platforms. Similarly, high-impact breaches such as the Optus incident affecting around 9.5 million individuals intensified regulatory scrutiny and enforcement expectations.

Likewise, regulatory oversight over cloud use is tightening. For instance, APRA’s CPS 230, effective 1 July 2025, strengthens requirements for data governance, operational resilience, and third-party risk management, directly affecting RegTech solutions hosted on public or hybrid clouds . Additionally, Australia’s Consumer Data Right (CDR) framework requires accredited providers to maintain secure, consent-driven data handling, often favoring domestic data controls.

Australia Regtech Market (2026-32) Segmentation Analysis:

The Australia Regtech Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Deployment Model:

• Cloud-based
• On-premises

Cloud-based deployment dominates the Australian RegTech Market with a market share of around 74% because modern compliance obligations increasingly depend on real-time data exchange, system interoperability, and continuous supervision. As regulatory frameworks become more digital, organizations require compliance platforms that can operate continuously rather than through periodic, manual reporting, making cloud architecture the most practical option.

A key driver is Australia’s Consumer Data Right (CDR) framework, which mandates secure, consent-based data sharing through standardized APIs. RegTech solutions supporting open banking, consent management, and audit trails are therefore designed as cloud-native systems to handle encrypted data flows at scale. In parallel, Australia’s expanding digital identity ecosystem, including the rollout of mobile driver’s licences and the federal Digital ID framework, requires near–real-time identity verification and cross-platform integration, further reinforcing cloud deployment.

Regulatory reporting practices also favor cloud solutions. ASIC’s data-led supervision approach increasingly relies on structured, machine-readable submissions, encouraging firms to adopt cloud-based RegTech tools that automate validation, record keeping, and regulator engagement. Additionally, the New Payments Platform (NPP) enables 24/7 real-time payments, significantly increasing transaction speed and monitoring complexity. Cloud-based RegTech platforms are better suited to screen, analyse, and report these transactions in real time.

Based on the End-User:

• BFSI
• FinTech
• Telecom & IT
• Energy & Utilities
• Healthcare
• Government

The BFSI segment dominates the Australia RegTech Market and holds a market share of about 54%. The BFSI sector generates major market demand because it handles the largest volumes of regulated financial activity and is subject to the most data-intensive supervision. Australia’s financial system includes over 50 authorized deposit-taking institutions (ADIs), large insurance groups, and a superannuation sector managing more than USD2.5 trillion in assets , according to APRA. Managing compliance across institutions of this scale requires automated, technology-driven controls.

Transaction intensity further reinforces BFSI dominance. Australia’s payments ecosystem processes billions of electronic transactions annually, supported by card networks, real-time payments, and digital banking channels. This high transaction velocity increases exposure to fraud, sanctions breaches, and reporting errors, pushing banks and payment providers to adopt RegTech solutions for real-time monitoring and automated alerts.

Supervisory practices also favor RegTech adoption in BFSI. ASIC increasingly uses data-led surveillance, thematic reviews, and proactive supervision programs, requiring financial institutions to maintain structured, machine-readable compliance data. Manual processes are no longer sufficient to meet these expectations.

Additionally, Australia’s financial institutions are deeply embedded in cross-border payments and correspondent banking, increasing exposure to international AML and sanctions obligations. RegTech platforms help BFSI entities standardize controls, manage regulatory reporting, and demonstrate compliance consistency across jurisdictions. As a result, the combination of asset scale, transaction volume, supervisory intensity, and international exposure positions BFSI as the dominant end-user segment of the Australian RegTech Industry.

Gain a Competitive Edge with Our Australia Regtech Market Report

• Australia Regtech Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Australia Regtech Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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