My reflections from the 12th Annual Fintech & Banking Summit: The Future of Financial Services in an AI-Driven World

1. AI and Data Are Reshaping Financial Services

Across both traditional and emerging financial institutions, AI is becoming a core enabler of efficiency and insight. Banks are leveraging AI to process vast datasets, streamline operations, and improve decision-making in areas such as credit assessment, compliance, and fraud detection.

Some forward-thinking firms are going further by building proprietary AI models tailored to their internal processes. Minotaur Capital, for example, shared how it uses large language models to enhance efficiency and decision-making. However, an important point was made – AI is an enabler, not a substitute. Strong fund managers still need to demonstrate deep market understanding and discipline; those who aren’t good at what they do won’t become better simply by leveraging AI.

2. Regulation Remains a Barrier to Full AI Adoption

While the appetite for AI is strong, regulatory frameworks are struggling to keep pace. Compliance, privacy, and data governance requirements are slowing down adoption – particularly for larger, traditional institutions where risk management and customer data protection remain paramount.

3. Digital Banking Continues to Expand

Beyond AI, it’s clear that traditional banks are investing heavily in digital ecosystems. Platforms like AMP Bank GO, ubank (NAB), and Up Bank (Bendigo) are leading examples of how legacy players are transforming customer experience through mobile-first platforms, faster onboarding, and integrated digital tools.

4. The Evolving VC Landscape for AI and Fintech

The VC market in Australia remains relatively young compared to the US and Europe. Growth-stage funding often comes from international investors, though local funds are becoming increasingly active in technology and fintech.

When it comes to AI, investors are more confident backing AI-enabled businesses –those using AI to enhance existing products or processes – rather than pure AI plays. Several speakers likened today’s AI excitement to the blockchain hype cycle: full of potential, but still early in commercial maturity.

The clear takeaway: AI is becoming embedded in the financial services value chain, but human judgement and experience remain irreplaceable. As regulation evolves and capital markets mature, Australia is well-positioned to carve out a unique role in the global fintech and AI landscape – and I’m interested to see how the sector will evolve over the next 3-5 years.