Our three Good Money stores are celebrating some positive statistical feedback. In their one year of existence, they’ve had over 3000 conversations with customers across the three stores about our No Interest Loan Scheme (NILS) program, the low-interest StepUP program, matched savings program AddsUP, and financial counselling. These have translated into 180 loans, with loan numbers increasing particularly since March when the No Interest Loan Scheme (NILS) application processes began in-house.
Good Money is a new way of offering microfinance products to Australians on low incomes; designed to be a more direct alternative to payday lending. It uses a customer-friendly retail store environment to deliver low-cost financial services and affordable credit to people on low income. This joint project between Good Shepherd Microfinance, NAB and the Victorian Government is the first of its kind. The emphasis of Good Money is to engage customers who don’t generally access welfare services, and encourage them to make responsible and sustainable financial decisions which lead to greater social inclusion and long-term financial self-management.
Recent data has shown that 86% of customers have never previously accessed community finance, or financial inclusion products and services. Furthermore, 42% of Good Money customers have previously used ‘payday lending’ services within the last year. These figures demonstrate that the High Street locations and safe lending model are fulfilling the need for visible, viable, and socially responsible alternatives to the growing fringe and payday lending sector.
To reach the new commercial client group, Good Money has successfully used typical pay-day lending advertising, with 70% of the customers engaging with the stores and services through visual advertising material, word-of-mouth, or walk-ins to the store. Good Money is currently reassessing how it can advertise in new ways to reach more eligible clients.
These recent statistics are encouraging and illustrate the progress Good Money has achieved. They demonstrate that Good Money is meeting the expectations of what it set out to do: address the needs of those who require financial assistance.
For those that haven’t realised that safe, affordable and fair options exist - we are now in more accessible locations, and ready to help.
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