09 Jul 2014

Spotlight: shared value and banking

Shared value and banking – a global view

FSG has just released their latest research, Banking on Shared Value, exploring the role of banks in creating financial value while also addressing unmet social and environmental needs.

The paper talks to the crucial role banks play in society and therefore the potential they have to embed shared value into their operations.

In the paper, Michael Porter, leading authority on shared value and co-author of a number of Harvard Business Review articles on the concept, talks to the opportunity that financial services companies have to embed the strategy into their operations to reap the rewards for both business and society at large.

“Banks are essential to enable each individual to achieve his or her ambitions, to foster every spark of innovation, and to grow every industry and community. The potential to create shared value through retail, commercial and investment banking is enormous,” he said.

Furthering customer prosperity, fuelling the growth of regional economies and financing solutions to global challenges are the key areas identified for banks to leverage in order to create shared value.
Read the full Banking on Shared Value report


Shared value at NAB

NAB is bringing shared value to life by ensuring our purpose drives business strategy.  Our financial hardship program, NAB Care, is just one of our initiatives that talk to the shared value opportunity banks have in growing customer prosperity.

NAB Care is integrated into our collections department, with staff equipped with training from mental health organisation Lifeline in order to readily spot and manage customers experiencing financial hardship.

Our approach has meant that we’ve not only helped over 100,000 Australians in financial distress, but we’ve also seen $7.2 million in cost savings as a direct result of the program’s early contact with customers.

Within the wider NAB business, our enduring promise of ‘more give, less take’ is central to our fair value agenda and we’ve worked hard to embed this sentiment into all processes and programs.

Gavin Slater, NAB Group Executive Personal Banking believes the concept of purpose and profit is not mutually exclusive; rather it is an opportunity to come up with new ways of thinking.

“Our purpose to do the right thing has driven our ‘Fair Value’ strategy, creating value for our customers, employees, and shareholders over the past five years. We know our purpose is not a barrier to profit, but instead can be a source of profit and we are constantly looking for ways to innovate our business accordingly” he said.
Find our more about our ‘more give, less take’ approach.

Measuring our value – Lifeline’s Crisis Support Chat Service

Lifeline’s Crisis Support Chat Service exists to help people who are experiencing a personal crisis and looks to prevent the incidence of suicide. Users can access the online chat based service through Lifeline’s website and receive one-to-one confidential advice with a trained crisis supporter.

In 2008, our wealth management business MLC (a NAB company) took a leadership position in improving mental health outcomes for all Australians through the establishment of the MLC Community Foundation.

The Foundation understands the impact mental health issues have on our customers, people and business. As the founding partner of Lifeline’s Crisis Support Chat Service, MLC Community Foundation wanted to understand the social and economic benefits of the service.

The Social Return on Investment (SROI) study found that the service delivered a social and financial value of $8.40 for every $1 invested into the program.

The study demonstrated that social value was created for two categories of service users; crisis intervention and aversion and the public medical system and emergency services.

Three main outcomes were identified for the service users including:

· reduced suicidality/self-harm potential

· improved resourcefulness

· enhanced belonging.

Watch the video to find out more about the service and the results of the SROI study.

MLC Community Foundation has been a proud supporter of Lifeline since 2008 and has provided staff, volunteer and financial support, helping to enhance its 24 hour telephone crisis service along with the Crisis Support Service. Financial support is in the form of a long term grant that has reached $2.4 million since our relationship commenced.
Find out more about the work of MLC Community Foundation.

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