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Sumit Arora

Full-Stack Architect

Brisbane, Australia
January 6, 2026
7 min readIndustry Research

Finance Tech Gaps Australian SMEs Are Still Living With

Conversations with finance controllers reveal the same pain points again and again. Here's what's broken and where software can help.

The Gap

Australia's financial services ecosystem is less saturated than the US or UK. There's plenty of enterprise software (SAP, Oracle) and consumer apps (Xero, MYOB). But the middle ground — practical tools for SMEs with real compliance needs — is thin.

We've spoken with finance managers, controllers, and accountants across industries. The same themes keep coming up.

The Four Critical Pain Points

1

KYC & Client Onboarding

The Problem:

Law firms, accountants, and financial advisors need to verify client identity before engagement. Most still do this manually: collect documents, check IDs, fill forms, file paperwork. It takes 30-60 minutes per client and mistakes mean $50K+ AUSTRAC fines.

The Opportunity:

  • DVS Integration: Real-time ID verification against government databases
  • Digital Intake Forms: Client self-service with validation
  • Risk Scoring: Automated assessment based on client type, industry, geography
  • PEP/Sanctions Screening: Check against watchlists automatically

Impact:

2-hour onboarding → 15 minutes. 100% audit trail.

2

Invoicing & Tax Compliance

The Problem:

GST rules, ABN validation, payment terms, purchase order matching — every invoice has compliance requirements. SMEs handle this manually or use basic accounting software that doesn't enforce rules. Result: BAS errors, ATO queries, and accountant clean-up bills.

The Opportunity:

  • ABN Validation: Real-time check against ABR before invoice creation
  • GST Rules Engine: Automatic GST calculation based on product/service type
  • PO Matching: Link invoices to approved purchase orders automatically
  • BAS-Ready Reports: Export data formatted for BAS lodgement

Impact:

Zero BAS amendments. Accountant hours reduced 60%.

3

Credit Risk & NPA Monitoring

The Problem:

NBFCs, P2P lenders, and equipment financiers need to monitor loan portfolios for early signs of trouble. Many still do this manually — reviewing payment histories, calling customers, reacting to defaults instead of predicting them.

The Opportunity:

  • Repayment Tracking: Daily feeds from bank accounts, payment gateways
  • Risk Scoring Models: Combine payment history, industry data, economic indicators
  • Early Warning Dashboard: Visual portfolio health with drill-down to at-risk accounts
  • Automated Outreach: Trigger contact workflows when risk thresholds hit

Impact:

30% earlier detection. 15% reduction in NPAs.

4

Due Diligence & Financial Analysis

The Problem:

Before investments, acquisitions, or funding decisions, someone needs to build financial models. DCF analysis, ratio calculations, risk assessments. This is typically done in Excel by expensive consultants, every time, from scratch.

The Opportunity:

  • Templated Models: Pre-built DCF, comparable analysis, ratio calculators
  • Data Import: Pull financials from ASIC, annual reports, or uploaded statements
  • Scenario Modelling: What-if analysis with variable inputs
  • Report Generation: Professional output documents from analysis

Impact:

Due diligence in hours, not weeks. Consistent methodology.

The Common Pattern

Across all these areas, the pattern is the same:

80%
Domain knowledge
20%
Software
= 100%
Value delivered

The software isn't complicated. The value comes from understanding the domain deeply enough to know what to automate and what to leave to humans. That's where the real engineering happens.

Got a Finance Process That's Breaking?

We build practical finance tools for Australian businesses. Not enterprise software. Not consumer apps. The useful stuff in between.

Let's Talk