Australia has one of the most stable and developed financial services markets in the world with excellent facilities available to access our money including phone and Internet banking, branches and ATMs. Increased competition in the traditional banking market has also provided consumers with unprecedented choice in financial products and associated services and increased flexibility to ‘tailor’ products to their needs.

But not everyone has benefited from the liberalisation of financial services over the last 20 years. While choice, innovation and flexibility have increased, so has complexity. Some people might not have the knowledge, skills or confidence to understand or choose the right product. They might live far away from the nearest branch, or might not have a computer. Some people self-exclude from the market when they believe they will be refused. Or they are forced to access its fringe; the “pay day” lenders and the like.

Innovative collaborative programs

ANZ’s response to this environment has been to more closely align its community investment with its business; developing and implementing grassroots programs to improve financial literacy and financial inclusion in Australia.

“The issues identified in our research have a very real human impact which can include devastating consequences for individuals, families and communities,” says ANZ Chief Executive Officer, John McFarlane. “While certain groups are clearly more vulnerable than others, very few people will be completely immune to these problems throughout their life.

“Together with feedback from our employees and stakeholders, our response to our research has been to recognise that improving financial literacy and inclusion in our community is one of ANZ’s core social responsibilities. 

“We know that we cannot solve these problems alone, so we are working with inspiring and insightful community partners on innovative programs to help some of the most vulnerable people in society improve their money management skills and their ability to access fair and affordable financial products and services,” said McFarlane.

Saver plus

Saver Plus was developed by The Brotherhood of St Laurence and ANZ in 2002 to help families on low-incomes improve their financial literacy, set and achieve savings goals and establish a long term savings habit. As part of the program ANZ matches every dollar saved by program participants with an additional A$1 (up to A$1,000 in matched funds)towards primary, secondary and adult vocational education costs.

ANZ has established partnerships with a range of community organisations to deliver Saver Plus. Between 2003-2005, together they have helped 669 families save more than A$617,000 and receive more than A$1.15 million in matched savings for educational purposes.

Donna Jackson was one of those people. She joined the Benevolent Society’s Saver Plus program in Sydney. At the time, Donna had separated from her husband and, with two boys to raise, she was constantly worried about money and making ends meet.

Early in the program, “the lights went on” for Jackson and she realised her life needed to change. She gave up smoking to save money, found new ways to pay off debt and looked for opportunities to find a permanent job and regular income. By the end of the program, Donna had set up her own cleaning business and even does her own record-keeping now. 

“For the first time in years I didn’t feel overwhelmed by financial stress.We set a savings goal to get a computer for my son.With the matched funds from ANZ, it was no time before Owen was working on his computer at our home rather than at friends’ places.We all benefited from the program and are much more confident about our future now,” she says.

The most recent RMIT University research on the program supports Donna’s story. It shows that 71% of Saver Plus participants continue to save the same amount or more, 12 months after completing the program. For many, the most rewarding aspect was the boost in confidence and selfesteem they gained as a result of the program.

Moneyminded

MoneyMinded is Australia’s first comprehensive adult financial literacy program. It helps people, particularly low-income earners and those facing financial hardship, to develop the knowledge, skills and confidence to increase their personal financial wellbeing.

Working with financial counsellors and community educators, MoneyMinded recognises that the most effective learning occurs through face-to-face training, delivered locally through trusted community networks.

Community educator Linda Stacey came across MoneyMinded when developing a workshop on basic budgeting and book-keeping skills for people with a non-English speaking background and long-term unemployed people re-entering the workforce. She instantly saw the benefits of the MoneyMinded resources and her students appreciated the simple and practical tools to help them better understand and manage their money. 

Stacey has since been recruited by the Smith Family to run MoneyMinded courses on the Sunshine Coast. She now sees money management as an essential life skill. 

“One of the best things about MoneyMinded is it offers real solutions to financial problems. For example – what do you do when debt collectors come calling?

And importantly it encourages personal accountability, leaving the choices squarely in the hands of the participant,” says Stacey. 

ANZ continues to identify new ways to deliver the programs to expand and adapt MoneyMinded and Saver Plus to reach more people, with a specific focus on Indigenous communities, so that more Australians can benefit.

Contact: Julie Bisinella
Telephone: +61 3 9273 4571
Website: www.anz.com 

ANZ Sustainability Report 2006: http://www.anz.com/aus/corporateresponsibility2006/default.asp