Fin

an

cia

l W

ellb

&

Ind

igen

ou

s A

ustr

alia

AIATSIS Canberra

Vinita Godinho

28 March 2014

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

Fin

an

cia

l In

clu

sio

n &

In

dig

en

ou

s A

ustr

alia

FINANCIAL EXCLUSION IN AUSTRALIAA growing ‘Under-banked’ population…

Wellbeing

2

Mon

ey in

In

dig

en

ou

s

Au

str

alia

ECONOMICS 101What is money?

Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

3

Mon

ey in

In

dig

en

ou

s

Au

str

alia

Source: Adapted from “Measuring Financial Capability – an exploratory study” FSA 2005

SkillsKnowledge & Understanding

Confidence & Attitudes

Experiences & Circumstances Personality

Behaviour

influenceinfluence

influenceinfluence

3 ke

y el

emen

ts o

f fin

anci

al c

apab

ility

• Managing Money• Planning Ahead• Choosing Products• Staying Informed

FINANCIAL CAPABILITYMaking informed decisions about money…

Financial Capability Design of products & services Consumer education

Mon

ey in

In

dig

en

ou

s

Au

str

alia

INDIGENOUS LENSWhat does Financial Inclusion look like?

• Understanding of money

4Source: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

• Policy Implications

• Culture as enabler, not a barrier, for inclusion

5

Fin

an

cia

l In

clu

sio

n &

In

dig

en

ou

s A

ustr

alia

‘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:

RemoteSource: Vinita Godinho PhD, ASIC Conference Alice Springs 23 October 2013

6

Fin

an

cia

l In

clu

sio

n &

In

dig

en

ou

s A

ustr

alia

‘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

7

Mon

ey in

In

dig

en

ou

s

Au

str

alia

‘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..

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

Fin

an

cia

l In

clu

sio

n &

In

dig

en

ou

s A

ustr

alia

‘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

9

Fin

an

cia

l In

clu

sio

n &

In

dig

en

ou

s A

ustr

alia

‘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

• Role of Elders• Money is for Caring

10

Mon

ey in

In

dig

en

ou

s

Au

str

alia

INDIGENOUS FINANCIAL CAPABILITYCulturally Distinctive vs. mainstream Australia…

Confidence & Attitudes

Experiences & Circumstances

Personality

Behaviour

3 ke

y el

emen

ts o

f fin

anci

al c

apab

ility

• 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

11

Mon

ey in

In

dig

en

ou

s

Au

str

alia

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 moneyto

Manage Life

Fin

an

cia

l In

clu

sio

n &

In

dig

en

ou

s A

ustr

alia

Vinita.Godinho@rmit.edu.au+61395709393