1. Financial Conversations: a toolkit for microfinance workers Courtney Keefe – Learning & Development Damien Lee – Quality Management

2. Today’s Objectives By the end of today you will be able to:
Discuss the background and overview of the financial conversations research and e-learning module
Understand the financial capability framework
Discuss the 4 types of impact and validate against your experiences
Identify ways to enhance the impact of the financial conversation

3. Consultation World Café style Consolidate feedback for next steps
Today’s Structure
Consultation
World Café style
Consolidate feedback for next steps

4. How do you define financial conversations?
Includes but not limited to:
A budgeting activity to document incomings and outgoings
Discussion of the dangers of payday lenders
Day-to-day money management tips

5. NILS Life Changing Chats
Impact of the financial conversation on NILS applicants’ financial capability
Background
Long-held belief that the financial conversation enhances financial capability
Sought to understand the impact and significance of individual conversations
Further test financial capability framework

6. NILS Life Changing Chats
Impact of the financial conversation on NILS applicants’ financial capability
You are the first to see first cut of research findings – research report not yet finalised
Aims:
Explore impact of conversation on applicants’ financial knowledge, skills and behavior – financial capability
Investigate how to have a greater and longer term impact on NILS applicants’ financial capability

7. Financial Conversations: elearning
Evidence-based, community-led learning that will build capability of NILS workers to maximize client outcomes
elearning will cover:
- definition of financial exclusion in Australia
- an analysis of the 4 levels of impact the conversation can have
- ways to enhance the impact of the financial conversation

9. No two financial conversations are the same
Differ because:
Clients
How much information is shared
Client rapport
Experience of NILS worker

10. Research Findings
Informed and Inspired
Savvy and Supported
Confidence Consolidated
Reality Check

11. Informed and Inspired Before After
Lowest confidence in each of the domains of financial capability (knowledge, skills and behaviour)
Increased levels of confidence compared with all other groups
Feelings of shame, embarrassment and fear of rejection
Largest positive and most immediate impact from conversation
Most likely to change spending habits

12. Savvy and Supported Before After
Don’t know where to go to get help and information on money matters
Far less likely to consider payday loans and goods rental viable options
Relatively confident in tracking their spending
38% changed spending habits
Feel isolated and unclear about financial options
Felt more positive about where they can go for assistance

13. Confidence Consolidated
Before
After
Largest group (More than ½ of applicants)
Benefitted from practical advice and expanding knowledge of options
Already stick to a budget
More than 25% changed spending habits
Predictable but precarious financial situation
Most memorable part of conversation was receiving information on other financial options they’re eligible for, i.e. Good Insurance, AddsUP, StepUP
Confident money managers
Confidence was reinforced
Aware of dangers of payday lenders
Picked up new ideas to manage money
Feel judged by mainstream banks
Keenly aware their options are limited

14. Reality Check Before After
Very confident in their financial capability
Reduced confidence due to overrated capabilities
Overestimated their financial situation and abilities
Have a more realistic picture of their financial situation
Had unclear picture of their finances and spending
More than 34% made lasting changes to spending habits
More likely to seek help and spend their money wisely
Realisation that they have less disposable income they than they thought they had

16. World Cafe Groups of 5-6 1 group per question/butcher’s paper
4 min/question
Rotate clockwise on bell
Solutions-focused, constructive feedback
What indicators would help you determine which impact group an applicant may fall under?
Can include:
Identifying language, i.e. “I’m really not comfortable going through my budget…”
Body language
Documentation
2. How can you enhance the impact of the conversation with these types of applicants?
For example:
Take a strengths-based approach and provide encouragement

17. Contact details Courtney Keefe Learning & Development Officer
(03)
Damien Lee
Quality Analyst – NSW
(03)