UPDATE! 30 Organisations Join Forces To Enable Financial Inclusion For Three Million Australians and Boost GDP
The number of organisations committing to drive inclusion and resilience for the three million Australian adults who are experiencing financial exclusion has today risen to 30, with a range of actions underway to help those in need.
The 30 organisations which include energy providers, professional services companies, banks, universities and government agencies, have committed to Financial Inclusion Action Plans, which outline measurable actions to realise greater financial inclusion in their sphere of influence. Read the full media release.
Three million people in Australia are severely or fully excluded from financial institutions and their banking and insurance products. This financial exclusion places people and families at risk of financial hardships including poverty, vulnerability to predatory lending practices and poor social, emotional and health outcomes.
In 2015 Australia committed to financial inclusion by agreeing to international obligations including the G20 Financial Inclusion Action Plan and the United Nation’s Sustainable Development Goals.
Good Shepherd Microfinance has been appointed by the Australian Government to develop a Financial Inclusion Action Plan (FIAP) program. The FIAP program provides an opportunity for organisations to consider and take real action to realise financial inclusion and thereby enable economic mobility and resilience – especially for women – which is everyone’s interest. The program has been developed in partnership with the Australian Government, EY and the Centre for Social Impact and is also supported by an Advisory Group of experienced professionals from across the government, corporate and community sectors. A FIAP is an agreed strategy of practical actions that an organisation will undertake to improve financial inclusion in Australia.
What is a Financial Inclusion Action Plan?
A Financial Inclusion Action Plan provides an opportunity for organisations to take real action to enable financial inclusion and resilience, and thereby realise greater equality, inclusive growth and resilient communities.
Individual organisations develop a Financial Inclusion Action Plan with actions designed to strengthen financial resilience for large numbers of people, including their employees and customers experiencing exclusion and hardship, with a specific focus on:
- Economic wellbeing, especially of women
- Increasing engagement
- Innovative solutions
- Cross-sector cooperation
Why is financial inclusion important?
Economic modelling shows that by working together over the next 10 years, the FIAP program can enable large numbers of people to progress away from financial crisis and hardship, towards stability, income generation and longer term resilience. The emulation effect of a modest group of 30 organisations embedding committed actions into business as usual practices, could contribute towards a GDP uplift of $2.9 billion, government savings of $583 million and increased household wealth of $11.8 billion per annum.[1]
12 trailblazers over 240 actions
The Foundation FIAP is a 12 month commitment to declare existing actions as well as test and explore new ways to promote financial inclusion and financial resilience. Together the 12 Trailblazers have committed to over 240 actions focused on enabling core aspects of financial inclusion and resilience.
Twelve trailblazing organisations have unveiled their commitment to stimulate inclusive economic growth, especially focused on women. These organisations will see coordinated, measurable actions to improve financial resilience for large numbers of people experiencing financial exclusion and hardship.
Building a FIAP Community – Statements of Commitment
Alongside the launch of the Foundation FIAPs, four organisations also publically committed to developing and launching their FIAPs in 2017. These organisations join the growing FIAP Community of Practice that will explore multi-sectoral collaboration to create shared value through collective impact.
Advisory Group Members
The Financial Inclusion Action Plan program is governed by an Advisory Group, which includes:
- Delia Rickard – Chair, FIAP Advisory Group, Australian Competition and Consumer Commission
- Christine Nixon – Chair, Good Shepherd Microfinance
- Professor Roslyn Russel – School of Economics, Finance and Marketing, RMIT
- Fiona Guthrie – CEO, Financial Counselling Australia
- Julie Kun – CEO, Women’s Information and Referral Exchange (WIRE)
- Gerard Brody – CEO, Consumer Action Law Centre
- Diane Tate – Executive Director Retail, Australian Bankers Association
- Rob Whelan – CEO, Insurance Council of Australia
- Sally Sinclair – CEO, National Employment Services Association
- Miles Larbey – Senior Executive Leader, ASIC
- Shelley Jones – Director, Good Shepherd Microfinance
- Professor Ross Buckley – King & Wood Mallesons Professor of International Finance Law, University of New South Wales
- Amanda McIntyre – First Assistant Secretary, Office for Women, Department of Prime Minister and Cabinet
Ashurst Lawyers has been appointed as the Independent Reviewer to provide assurance that all aspects of program governance are being managed appropriately.
[1] SPP (2016). Economic Modelling for FIAP Program Implementation Team, November 2016
Related links
Dr. Godinho, V. 2017, ‘The Power of 30’, Linkedin, viewed 22 June 2017, https://www.linkedin.com/pulse/power-30-dr-vinita-godinho?published=t