1. Marathon image

3. 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%

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

5. 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

6. 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

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

8. 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

9. 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

10. 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

11. 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
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12. 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.
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13. 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
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14. 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
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15. NEXT STEPS road to success
August: Relationship Agreements with NNA and BECA finalised
September: Accreditation and training
October: New process launched
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16. YOUR TEAM
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