Financial inclusion
Why financial inclusion matters to us
Many disadvantaged Australians lack the access to fair and affordable credit and financial services that others take for granted. Simple purchases like replacing a refrigerator, buying a computer for homework purposes, or repairing a car necessary for travel to work can lead to substantial hardship, force people to enter into contracts they can’t fully understand, and even push them into the hands of unregulated, high interest–charging money lenders.
What we want
To counter this serious problem, the Brotherhood of St Laurence is campaigning for a national financial inclusion strategy, which would give people on low incomes:
- effective access to financial services, including affordable credit and insurance
- the opportunity to save and acquire assets, such as cars and homes
- financial literacy – to enable them to manage their money, make better financial decisions, enforce their legal rights and obtain their full financial entitlements.
The Brotherhood believes that the financial services sector should be required to serve the needs of the whole community, including low-income earners, who in many cases miss out because they are regarded as ‘less profitable’ than other consumers.
What we’re doing
Demonstrating the effectiveness of financial inclusion programs
The Brotherhood’s financial inclusion programs show that there are effective ways to help people on low incomes deal with financial matters and give them confidence in dealing with mainstream services such as banks.
Progress Loans show that people living on low incomes are able to manage small loans to pay for important household purchases.
Saver Plus shows that matched savings programs with financial literacy training can foster savings habits and enable people to acquire assets such as a computer to assist their children’s or their own education.
MoneyMinded is an adult financial education program developed to help people, particularly those on low incomes, to build their financial skills, knowledge and confidence.
Media release
Savings program launches nationally to help low-income families with rising school costs 21 June 2010
Articles, reports and papers
Vawser and Associates 2009, Progress loans: towards affordable credit for low-income Australians (PDF file, 818 KB)
Rosanna Scutella and Genevieve Sheehan 2006, To their credit: evaluating an experiment with personal loans for people on low incomes (PDF file, 185 KB)
Roslyn Russell 2008, Saver Plus: more than saving – A brief comparison with international programs (PDF file, 362 KB)
Roslyn Russell, Jennifer Harlim and Robert Brooks 2008, Saver Plus 2008: follow up survey results – savings behaviour of past Saver Plus participants (PDF file, 432 KB)
Influencing how financial services are governed and regulated
The Brotherhood believes that financial services should be provided in the best interests of the community as a whole. We are working to ensure the regulatory and governance structures of the finance sector promote universal access to affordable and fair financial services.
Media release
Banks services must account for low income people, Brotherhood tells Senate inquiry, 10 August 2009
Credit reforms on right track, but disadvantaged need affordable loans, 28 May 2009
Policy submissions
Submission to Senate Economics Committee Inquiry into the Banking Amendment Bill 2010, July 2010 (PDF file,165 KB)
Response to Australian Energy Regulator (AER) issues paper on retail energy pricing information guidelines, April 2010 (PDF file, 43 KB)
Response to Treasury options paper on unfair terms in insurance contracts April 2010 (PDF file, 371 KB)
Submission to Treasury re National Consumer Protection Bill, May 2009 (PDF file, 132 KB)
Response to the Standing Committee of Officials on Consumer Affairs consultation paper An Australian consumer law: fair markets, confident consumers, March 2009 (PDF file, 51 KB)
Submission to Senate Economics Committee Inquiry into Aspects of Bank Mergers, January 2009 (PDF file, 44 KB)
Submission to the inquiry into competition in the banking and non-banking sectors, July 2008 (PDF file, 172 KB)
Articles, reports and papers
Genevieve Sheehan, Therese Wilson and Nicola Howell 2008, Coming to grips with credit contracts: steps to protect vulnerable borrowers (PDF file, 153 KB)
Genevieve Sheehan and Gordon Renouf, Risk and reality: access to general insurance for people on low incomes (PDF file, 302 KB)
Go to research in progress about financial inclusion.