Financial capability

Our approach

A fundamental purpose of our business is helping to build prosperity of individuals and communities in which we operate. We do this by providing products and services with simple fee structures  and clear information so our customers can make informed decisions about the management of their money.

A significant investment over a number of years has helped us to understand which are the groups in the community with low levels of financial capability, and to create innovative programs to help address this. Our programs are designed to promote financial inclusion and build the money management skills and savings of people on low incomes and from disadvantaged groups, including Indigenous communities. These programs benefit participants and the community as a whole, while also delivering long-term benefits to our business and our shareholders, such as:

  • increasing awareness of ANZ’s expertise and leadership among key stakeholders in the business, government, regulator, education and community sectors, and strengthening our reputation as a good corporate citizen
  • building a financially fit workforce, which enhances our ability to attract and retain quality staff, and helps us to improve our customer service
  • helping us to become a trusted member of the community, developing products and services that respond to our customers’ needs, and reducing our exposure to risk.

2012 targets

Each year we set public targets and report progress on a business-wide program of work to improve financial capability, one of the most important issues and opportunities for our industry.

For 2012, these targets are:

  • Report publicly and engage key stakeholders in the outcomes of a strategic review of our Australian financial literacy programs including our future priorities
  • Reach an additional 30,000 people from low-income and disadvantaged backgrounds with our MoneyMinded financial capability program
  • Enrol 14,750 people in our Saver Plus program across Australia over three years
  • Implement a financial inclusion strategy for our business in New Zealand

About our flagship financial literacy programs

Our financial literacy research tells us that in Australia, financial literacy is strongly associated with a person's age, gender, education and socio-economic characteristics. The lowest average levels of financial literacy are associated with:

  • people without tertiary education
  • people whose main source of income is a government benefit or allowance, or who are in unskilled work
  • people with household income under $25,000 per annum
  • young people (under 25)
  • women, especially those over 70 years of age
  • people who speak a language other than English at home
  • people of Aboriginal or Torres Strait Islander descent.

Following this research, we have developed a series of programs that aim to improve financial inclusion and capability of disadvantaged and vulnerable individuals:

Saver Plus

A financial literacy and matched savings program which helps people on lower incomes to establish long-term saving habits. The program was developed with the Brotherhood of St Laurence and is delivered in partnership with Berry Street, The Benevolent Society, The Smith Family and other local community agencies. This program is funded by ANZ and the Australian Government Department of Families, Housing, Community Services and Indigenous Affairs.
MoneyMinded

A financial education program that aims to help people understand the fundamentals about money management so they can make informed decisions about the use and management of their money. The program is delivered by a network of financial counsellors and community educators in Australia, New Zealand, and across the Pacific including Papua New Guinea and Fiji. Online versions of MoneyMinded workshops have been designed to anable access by individuals that are visually impaired.
MoneyBusiness

A program developed to build the money management skills and confidence of Indigenous people and develop a stronger savings culture in their communities, developed in partnership with the Australian Government (Department of Families, Housing, Community Services and Indigenous Affairs) and delivered in a number of locations by community agencies.
Progress Loans

A program developed in partnership with the Brotherhood of St Laurence that allows people on low incomes with limited access to mainstream credit to take out small loans for essential household items.

Our programs are informed by community consultation, and delivered through partnerships with government and local community organisations such as:

  • Brotherhood of St Laurence
  • The Smith Family
  • The Benevolent Society
  • Berry Street
  • Mission Australia
  • Anglicare
  • Kildonan UnitingCare
  • Commonwealth Government of Australia (Department of Families, Community Services, Housing and Indigenous Affairs)
  • Financial Counselling Australia
  • Te Rūnanga o Ngāi Tahu

Our partnership approach with the community and government sectors has been widely recognised as a successful model for cross-sector collaboration.

Our programs are backed by regular research into levels of adult financial literacy. We have also commissioned research to understand financial exclusion and causes of financial difficulty.

The effectiveness of our programs is independently assessed.

For example, research conducted by RMIT University (Australia) in 2011 shows Saver Plus has a lasting impact on building a long-term savings habit, overall confidence and economic and social inclusion of those involved, with:

  • 87% of participants continuing to save at the same rate or more, up to three years after completing the program
  • 84% of participants improving their ability to plan ahead and stay on top of things financially
  • 68% being more confident in dealing with banks and other financial institutions
  • 84% being able to encourage other family members to save.
  • View our financial inclusion research under reports

2011 highlights

We are extending the reach of our Saver Plus program:

  • More than 10,000 people have joined Saver Plus since the program launched in 2003. Participants have saved over $4 million for education expenses, and have received around $5 million in matched savings from ANZ.
  • Our community partners received a $26.5 million Australian Government grant, which enables them to expand the reach of our flagship matched savings program, Saver Plus, to an additional 20,000 people (through sites in every state and territory in Australia) over the next 4 years.

We are extending the reach of our MoneyMinded program across our region:

  • Around 160,000 people have participated in MoneyMinded since it commenced in 2003, including more than 32,000 in 2011. This includes:
    • MoneyMinded/Saver Plus partners and financial counsellors in Australia reached over 18,300 participants.
    • MoneyMinded in Asia Pacific (including pilots in Fiji, American Samoa, Cook Islands, PNG and Hong Kong) reached around 2,800 participants.
    • MoneyBusiness (adapted for use in Indigenous communities) reached 9,980 participants in 215 Australian communities,
    • 980 people completed online MoneyMinded courses.

We are improving access to small loans for low-income earners:

  • Since the Progress Loan program was launched in 2006, more than 1,800 small loans have been written for approximately $5.5 million. Average loan size is $2,952 and loans are used for the purchase of household goods such as whitegoods and second hand cars.

 

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