National Priority 4

Financial Management and Banking

Financial management and access to banking services, particularly in remote areas, is widely identified as an important issue and an area that requires coordination and cooperation amongst financial services, traders and consumers. Low financial literacy increases the vulnerability and disadvantage of Indigenous consumers.

The focus of this priority is to improve financial literacy, with a particular emphasis on education of young people, and to address the lack of financial services for Indigenous people in regional and remote areas.

However, feedback provided during the development of the strategy highlighted that financial literacy alone will not prevent scams, and that compliance action by consumer agencies is also important.

IssuesActions
Responsibility
Timeline
Low levels of financial literacy amongst Indigenous people, especially young people. This often leads to being trapped in a cycle of debt to traders.
Agencies to commit funding to ensure existing and future consumer and financial education programs will be developed and delivered in a culturally and appropriate way.
SCOCA working party on consumer and financial literacy as well as each consumer agencies.
Ongoing.
There are widespread difficulties in understanding contract terms, obligations and rights.

Inappropriate marketplace behaviour targeted at indigenous consumers.

Lack of, or high cost of, banking services in regional and remote areas.

Government funding for financial counselling services is focused on post crisis support rather than preventative programs 		SCOCA to establish Indigenous banking/financial issues liaison group. This group will work with banking and other credit providers including the Australian Bankers Association, Credit Union Services Corporation of Australia, Australian Association of Permanent Building Societies, the Australian Financial Conference, the Reserve Bank and Australian Prudential Regulation Authority to promote the development of:
  • special rural, regional and remote policies to be adopted by banks, building societies and credit unions;
  • culturally appropriate services for Indigenous customers; and
  • education initiatives to enhance the financial literacy of Indigenous consumers, having regard to the recommendations of the Consumer and Financial Literacy Taskforce.

SCOCA Commissioners to take responsibility for this group.
December 2005.