1. Financial Wellb & Indigenous Australia AIATSIS Canberra Vinita Godinho 28 March 2014

2. Age, Language, Location, Employment, Income, Financial ‘Capability’ (Literacy) 1 Lack access to safe, affordable & appropriate financial services from mainstream 17.7%, growing Source: ‘Measuring Financial Exclusion in Australia’ NAB June 2013 43.2% Indigenous Key: ‘Wicked’ problem Financial Inclusion & Indigenous Australia FINANCIAL EXCLUSION IN AUSTRALIA A growing ‘Under-banked’ population… Wellbeing

3. 2 Money in Indigenous Australia ECONOMICS 101 What is money? Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

4. 3 Money in Indigenous Australia Source: Adapted from “Measuring Financial Capability – an exploratory study” FSA 2005 SkillsKnowledge & Understanding Confidence & Attitudes Experiences & Circumstances Personality Behaviour influence 3 key elements of financial capability Managing Money Planning Ahead Choosing Products Staying Informed FINANCIAL CAPABILITY Making informed decisions about money…

5.  Financial Capability  Design of products & services  Consumer education Money in Indigenous Australia INDIGENOUS LENS What does Financial Inclusion look like? Understanding of money 4 Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013 Policy Implications Culture as enabler, not a barrier, for inclusion

6. 5 Financial Inclusion & Indigenous Australia ‘INDIGENOUS MONEY’ Culturally Distinctive vs. mainstream Australia… Money is not top priority, caring for family is.. Medium of relationships, not exchange. One of many resources.. Domestic boundary: large & fluid, financial unit is not nuclear household.. Phase 1: Remote Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

7. 6 Financial Inclusion & Indigenous Australia ‘INDIGENOUS MONEY’ Culturally Distinctive vs. mainstream Australia… Imposed from outside culture, history, disconnect from knowledge systems (trade) Money seen as problem, lacks ‘social legitimacy’ Role of elders Learning by doing Respect, value Confidence Control vs. Share Growing money Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

8. 7 Money in Indigenous Australia ‘INDIGECONOMICS’ 101 What is money? Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013 Phase 1: Remote Medium of relationships, not just exchange.. Family is store of value.. Caring is the unit of account..

9. 8 Domestic financial unit = Household cluster Money is for caring, one of many resources Disconnect from knowledge, role of elders Control vs. share, Respect, value, confidence Financial Inclusion & Indigenous Australia ‘INDIGENOUS BANKING’ Distinctive Pattern vs. mainstream Australia… Confusion about the ‘money story’, lower respect and value for money Passwords & user IDs are routinely shared amongst family & kin Difficult to control own money whilst maintaining relationships Repeated Balance Enquiries Privacy & security concerns All money is removed from account Pre-allocate money to regular expenses Maintain Multiple Bank Accounts to ‘hide’ money Incur higher fees (eg. ATM fees, interest rates) Difficult to ‘know, grow & control’ money ‘Chuck-in’ style Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

10. 9 Financial Inclusion & Indigenous Australia ‘INDIGENOUS FINANCIAL INCLUSION’ ‘Culturally Appropriate’ Policy Design… PRODUCT DESIGN REMOTE DELIVERY CAPABILITY ‘UNDER-BANKED’ POLICY Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

11. Role of Elders Money is for Caring 10 Money in Indigenous Australia INDIGENOUS FINANCIAL CAPABILITY Culturally Distinctive vs. mainstream Australia… Confidence & Attitudes Experiences & Circumstances Personality Behaviour 3 key elements of financial capability Managing Money Planning Ahead Choosing Products Staying Informed CULTURE Empower Elders Individual Obligations Collective Support Respect & Value of money Positive Social norms Know, Grow & Control money Connect & Build on Traditional knowledge Skills Money is a Valued resource, Enabler to achieve ‘own’ goals Knowledge & Understanding Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

12. 11 Money in Indigenous Australia INDIGENOUS FINANCIAL CAPABILITY ‘Culturally Appropriate’ Design… Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013 Build on & connect to traditional knowledge Role of Elders in Financial Capability Know, Grow & Control Money Money is for caring – achieve own goals Elders are vital, Role model & support Money is a resource, Rights & Obligations Saving is Caring Individual Obligations, Collective Benefit Collective support to achieve goals Care for Oneself to Care for Others Goal-oriented Savings Build elders’ capability Practise skills in family Allocate, Manage & Preserve Manage money to Manage Life

13. Financial Inclusion & Indigenous Australia Vinita.Godinho@rmit.edu.au +61395709393