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NAB’s commitment to Microfinance

We’re on a mission to help increase financial access for 1 million low income Australians by 2018.

The 2014 Measuring Financial Exclusion in Australia report, commissioned by NAB and conducted by the Centre for Social Impact, found that more than three million adult Australians don’t have access to a moderate amount of credit, a basic transaction account or don’t have general insurance.

We know we can play a big role in helping people on low incomes access basic financial products and increase their financial confidence. That’s why, since 2003 we’ve been working with Good Shepherd Microfinance, the Federal Government and over 400 community organisations to help provide Australians with financial resources, education and personal and business microfinance products.

NAB

NAB’s commitment to NILS, is a longstanding and significant one; providing over $24 million in loan capital to expand NILS across Australia, as part of our $130 million capital boost to support lending to low-income groups. Loan capital is currently provided to over 200 accredited NILS programs via interest and fee free overdraft facilities. The NILS capital we supply will ultimately become community funds, lent on an ongoing basis for continual “recycling” by community-based NILS providers.

We also support the delivery of low interest StepUP loans upto $3,000 from 36 locations across Australia. Recipients have a direct borrowing relationship with NAB and are mentored by a microfinance worker throughout the loan process and repayment period.

Those who have successfully paid off either a NILS or StepUP loan are eligible for the AddsUP Savings Program where they are encouraged to save $500, which is then matched by NAB dollar-for-dollar. The program inspires customers who have never saved before, to develop a positive long-lasting habit, by rewarding their commitment.

Our Microenteprise Loans are for those wanting to start a business but lack assets and a track record; the program provides unsecured loans upto $20,000 to help get them started and grow their business. The loan is linked to business training programs to ensure that the businesses have the greatest chance of success.

We advocate the Corporate, Community and Government partnership model to achieve financial inclusion outcomes and the impact of Good Money Community Hubs in Victoria is yet another successful example this. The primary aim of Good Money is to increase access to community finance services especially for people who are not traditionally associated with welfare services (working class families and individuals who are struggling to make ends meet). With three stores in Victoria and the first store, soon to be opened in South Australia, Good Money is expanding to its high street presence in response to demand for safe and affordable microfinance.

We also invest in research to raise awareness of financial exclusion, to deepen our own understanding of the issue and to learn more about how it affects social and economic disadvantage.

We’re focused on helping all Australians have a healthy relationship with money.

This page and its contents was written and authorised by NAB – July 2015

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