National research conducted by ANZ over several years has consistently shown a strong link between socio-economic status and levels of financial literacy and inclusion in Australia. We have used the findings of this research to inform our business strategy and guide our responses to the key issues identified.
Our community investment strategy focuses on developing and delivering innovative programs to help some of our community's most vulnerable people improve their lives by building their financial knowledge, skills and confidence. For example:
Saver Plus
was developed by ANZ and the Brotherhood of St Laurence (BSL) to help families on low incomes improve their financial literacy, set and achieve a savings goal, and establish a long-term savings habit. ANZ matches every dollar saved by participants (up to $1,000) towards primary, secondary or vocational education costs.
A total of 2,247 people have now participated in the program - 1,385 this year alone. Together, they have saved more than $1.5 million and each person is eligible for up to $1,000 in matching on completion of the program. Research conducted by RMIT University showed that 75% of participants continued to save the same or more 12 to 24 months after completing the program and approximately 95% are reaching their savings goal during the program.MoneyMinded
is a financial education program and resource designed to help people, especially those on low incomes, make better and more informed choices about their money. It contains no ANZ branding or product information. A total of 22,458 people have participated in MoneyMinded this year and more than 40,000 in total since the program began in 2004. An additional 1,040 people were trained to deliver the workshop this year, bringing the total number of people trained to 1,972.Progress Loans
is a loans program developed with BSL and available to people who have had difficulty accessing affordable, fair and safe credit from mainstream providers. Since Progress Loans started, 209 people have obtained credit to purchase essential household items and services. The majority of these people (71%) are women. The average loan size is $1,722 and all loans are performing ahead of the mainstream rate.MoneyBusiness
is a unique financial literacy and money management program tailored specifically to help improve Indigenous people's money skills and develop a stronger savings culture. The program was developed in partnership with the Australian Government and is being piloted in six communities in remote Australia, assisting participants to better understand money problems and put in place strategies to address them.
Research shows these programs are making a real, positive difference to the lives of adult Australians and their families. More savings, a better understanding of money issues and access to effective money management techniques and tools are helping low-income earners become more financially capable and confident into the future.
PARTNERSHIPS FOR CHANGE
A cornerstone of our community investment strategy has been the development of deep partnerships with a range of community organisations who share a mutual interest in improving financial literacy amongst some of the most vulnerable groups in our society.
Our initial aim was to help those people in segments of the community who in the past had been excluded from mainstream banking. We recognised early that these people were unlikely to trust us and approached experienced and forward-thinking community organisations to assist in reaching the people we wanted to help.
It has taken time to establish strong relationships with these community partners. Some were strong critics of the banking sector. Others were wary of the level of commitment from corporations.
All welcomed our long-term commitment to helping to change the systemic issues that contribute to social and economic disadvantage. For us, this included a willingness to listen and respond to 'hard truths' about how banks had in part contributed to these issues.
Today, we partner with organisations such as BSL, The Benevolent Society, The Smith Family and Berry Street Victoria in the design and delivery of specific programs. We also have valued relationships with a range of other organisations that enable us to understand issues in the community and our role in addressing them.
Our approach and results have been recognised in consecutive years by the Prime Minister's Awards for Excellence in Community Business Partnerships and as leading practice globally on the Dow Jones Sustainability Index.
BUILDING ON OUR STRENGTHS
While ANZ has financial knowledge, expertise and resources, our partners know intimately the people who need help and the issues that matter to them. They also have the expertise to deliver appropriate services. These are highly valuable resources - just as important as a financial investment - to achieving our shared objectives.
Our community partners value ANZ's strong leadership - especially our support for comprehensive research into the issues of financial literacy, financial exclusion and financial difficulty in Australia, which both inform and affirm the solutions we develop.
Seeing the value of partnerships as broader than any one particular program is also important. For example, we consulted closely with a range of partners, community organisations and the financial counselling sector when we reviewed our practices related to the marketing of credit limit increases to low-income earners, and the cost and application of exception fees. Similarly, when developing our approach to Human Rights we were able to draw upon the Brotherhood of St Laurence's expertise on these issues. We also worked closely with Reconciliation Australia on our Reconciliation Action Plan in support of Indigenous Australians.
Our partners have also accessed professional expertise from ANZ people on issues such as marketing and information technology, as well as general volunteer support for a range of initiatives.
WORKING THROUGH CHALLENGES
We have been working with our partners to understand how to effectively measure the success of our programs. Together, we have recognised they should not be judged solely by output, and are now focusing our research to determine the social and economic benefits of our programs for participants and their families.
Our partnerships with the Australian and Victorian Governments bring our financial literacy programs to people and communities that would otherwise have been difficult to reach, such as Indigenous communities in remote Australia. Over time we have developed a better understanding of the respective roles that each sector - government, corporate and community - can play in this process.
We are contributing to international discussions on the challenges facing cross-sector partnerships through our involvement with the Partnership Brokers' Accreditation Scheme (PBAS). This includes sharing case-studies that may help other organisations draw upon our experience in tackling similar issues and opportunities through a partnership approach.
IDENTIFYING AND RESPONDING TO NEW OPPORTUNITIES
Looking ahead, our partners are considering ways they can use our approach to respond to emerging issues such as social exclusion in Australia.
Our Reconciliation Action Plan was cited as an example of such an approach, while the impact of carbon pricing for low-income earners was identified as an immediate issue requiring deeper research and a considered response.