NAB commits more to help Australians in financial stress

Share

Share

NAB has pledged to provide 100,000 loans annually to low income Australians as part of the bank’s ambition to improve the financial wellbeing of its customers and communities.

The commitment comes as research commissioned by NAB found over 2.6 million Australians have no savings at all leaving them unprepared for a financial shock such as an unplanned medical expense.

NAB Chief Executive Officer, Andrew Thorburn, said the bank wanted to better understand the issue of financial resilience and how it could do more to help.

“Banks are central to the lives of Australians, including assisting them with some of the most important decisions they will make such as buying a home or starting a business,” he said.

“But it’s just as important we back people when they need it most. That’s why we have committed through our partnership with Good Shepherd Microfinance to provide 100,000 loans annually to low income Australians within two years.

“These loans are for items such as a second-hand car, fridge or washing machines – items that can seem small but they make a big difference.”

Part 1 of Financial Resilience in Australia, produced by the Centre for Social Impact (CSI) at UNSW Sydney in partnership with NAB, reveals only one in three (31 per cent) Australians are feeling financially secure – a five per cent decline on the previous year.

It also shows:

• Fewer Australians are prepared for ‘a rainy day’, with only half having savings equal to three or more months’ pay.
• Australians are less financially resilient than in previous years, with over 2.4 million adults either severely or highly stressed about money than last year.

Financial resilience is being able to bounce back from a financial shock. This includes having savings and access to appropriate credit, as well as support from family, friends, and community and government organisations.

“The cost of living is a real concern for many Australian households so when they are hit with an unexpected bill it can be difficult to bounce back,” Mr Thorburn said.

“To build financial resilience, it is really important that Australians have access to support, products and services, so that when times are tough they can get the help they need.”

NAB has worked in partnership with Good Shepherd Microfinance for the past 14 years to provide products, support and education to Australians who don’t typically qualify for bank products and services.

“We are proud that through our long-standing partnership with Good Shepherd Microfinance, we’ve provided more than $212 million in no and low interest loans to over half a million Australians who need support,” Mr Thorburn said.

“But as the research shows, there is more to be done and we are committed to helping.”

NAB has allocated $130 million for microfinance products and last year with Good Shepherd Microfinance provided 26,000 loans to low income Australians. Mr Thorburn has set a target to increase that to 100,000 loans annually within two years.

Chief Executive Officer at CSI, Professor Kristy Muir, said it is concerning to see that Australians are feeling less financially secure.

“Financial stress can have significant impacts on a person’s life. We know that a growing number of Australians are financially stressed and don’t have appropriate, affordable or accessible supports to help them survive a financial shock. It’s important that society has the right safeguards in place,” Professor Muir said.

“By understanding more about what Australians need to help them access appropriate and affordable supports, they will be better placed to withstand financial adversity, and better equipped to face and bounce back from adverse events.”

Read more here: Part 1 Financial Resilience in Australia

Announcements

SEE ALL TOPICS

Download media content

NAB's commitment to addressing the rise of financial stress (13 seconds)

MP3 198 KB Download

What a small loan means for Aussies doing in tough (20 seconds)

MP3 314 KB Download

Helping almost half a million Aussies on low incomes (15 seconds)

MP3 248 KB Download

Advice for those feeling financially stressed (12 seconds)

MP3 187 KB Download

Related Articles

  • Half Year Results

Video: NAB CEO Andrew Irvine discusses 2024 Half Year Result

In this video interview NAB CEO Andrew Irvine reflects on NAB’s 2024 Half Year Results, economic conditions and the bank’s strategic direction.

  • 02.05.2024
  • Time to read 1 min read
  • Half Year Results

NAB announces 2024 Half Year Results

NAB has today released its 2024 Half Year Results to the market.

  • 02.05.2024
  • Time to read 1 min read
  • Climate

Chaucer leads industry with ESG balanced scorecard

Senior executive at the London-based re/insurer Chaucer Group, Simon Tighe, says insurance and reinsurance is one of the largest investors of capital in the world, and there’s not another market or industry with the impact or ability to incentivise clients to make themselves more sustainable.

  • 12.04.2024
  • Time to read 5 min read

Quick links

National Australia Bank — NAB

Sometimes When The Unexpected Happens, We Realise What We Truly Value. Whether A Home, Farm, Business Or Your Passion, NAB Is Here To Support You.

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights.