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The problem positive social impact, declining product performance Government funding uncertainty see volumes drop 50% six month period Policy change – clients can own residential and investment property Business fundamentals package introduced BDD rose from 12.02% to 15.03% following Win Tomorrow changes Interest rate increased from 5.99% to 9.99%

Part of the bigger picture Small Business + Financial Inclusion = Australia’s most respected bank

How we did it asked the experts Research and design led by NAB Labs Conducted 30 minute face to face interviews with 13 customers, 5 mentors & providers Identified commonalities and categories Synthesis session to identify themes and areas of opportunity. GILL GORDON MINOT GELATO Provider/mentor MEL customer NAB Labs

Feedback Providers are reluctant to recommend MEL to customers and have stopped doing so It took 6 months for me to receive an outcome! The mentoring sessions felt more like a tick and flick exercise. Loved the training Loan amount is not responsible for our applicants

How we did it support across the bank MEL SKILLED VOLUNTEER DAY CUSTOMER JOURNEY WALKTHROUGH IDENTIFYING OPPORTUNITIES PROBLEM SOLVING SESSION WELCOME NEIS THE SOLUTION

Priorities prove concept first, then redesign Phase 1: Simplify process Design appropriate credit guidelines & verification process Improve application quality Ensuring we are lending responsibly Focus resource to support partners Phase 2: New product Online Lower interest rate

Complex and confusing process Credit manager sends to banker Training Course Client & Mentor prepare application Application sent to NAB CR team to vet Small Business Concierge call customer & assign to banker Small Business banker verifies and sends to credit manager Credit manager sends to banker Application approved Application declined Old process to show how many hand offs: Training Application with mentor Application submitted to SBDC SB concierge assigns to a banker SB checks all documents are attached SBDC assigns to credit manager Credit manager assesses Cards Team issues card

Simplified process Application declined Training Course Client & Mentor prepare application Application sent to Aggregator to check all the documents provided Application sent to NAB team to assess loan Application approved and sent to Cards Team to issue card

Credit policy tailored, simple and easy TODAY: Bankers processing Microenterprise Loan are applying mainstream banking credit policy. They are also asking for mainstream verification documents.  TOMORROW: A dedicated and strategic credit policy targeted specifically to suit MEL participants. Affordability (GLEE) training from NAB Footer

Mentor driving the right conversations TODAY: Customers feel the mentor session is a tick and flick exercise. Currently there is no structure or standard for content during the mentor sessions. TOMORROW: Mentor conversation guide, along with a checklist and report that will need to be completed. Post mentoring session surveys. Bi-annual accreditation review. Reporting from NAB on application quality and client performance. Footer

Product focused on responsible lending Requirement to spend the funds in 3 months was leading to poor habits Conflicts with intention of program - potentially leaving people in a worse off position Lowering amount to $10,000 Footer

DELIVERY focused as we roll out changes Focus our support in the short-term to NNA and BECA Relationship Agreement, including annual targets for them to work on achieving with their members Change their role to provide: Vetting of applications for correct documentation before being submitted to NAB Performance coaching for providers and mentors Distribution of performance reporting from NAB Footer

NEXT STEPS road to success August: Relationship Agreements with NNA and BECA finalised September: Accreditation and training October: New process launched Footer

YOUR TEAM Footer