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Sydney, 10 November, 2003: The Australian Bankers’ Association (ABA) has told a Parliamentary Inquiry that there is a need for an Industry Roundtable, in partnership with Reconciliation Australia, to examine issues and work toward solutions on access to banking and financial services in remote communities across Australia.
The ABA has identified the need for the Roundtable to be organised in conjunction with Reconciliation Australia, Indigenous leaders, and Government and business representatives in its submission to the Parliamentary Joint Committee on Corporations and Financial Services’ Inquiry into banking and financial services in rural, regional and remote areas.
David Bell, Chief Executive of the ABA, said: “I am hopeful that the Parliamentary Joint Committee will encourage participation from Telstra, Australia Post, the Australian Competition and Consumer Commission, Department of Transport and Regional Development, Department of Family and Community Services and the Department of Communications.”
“The Roundtable, operating for twelve months, would explore cross-sectoral strategies to improve services and access for people living in remote areas”
“Clearly, many of these issues are bigger than the banking industry. There are no easy solutions for these communities – strategies need to be creative and specifically tailored.”
“We are pleased that Reconciliation Australia will work with us to build partnerships across sectors and to explore new ways of tackling Indigenous disadvantage.”
Co-Chair of Reconciliation Australia, the Hon. Fred Chaney AO, says the organisation would welcome the opportunity to work with the ABA to convene the Roundtable.
“There is no doubt that people living in remote communities, both Indigenous and
non-Indigenous, would benefit from a more cooperative and creative approach to the provision of financial services,” said Mr Chaney.
“It is a credit to the ABA that the initiative will be founded on industry and community consultation and negotiation, a process which reflects the approach taken by Reconciliation Australia in encouraging Australians to work together towards common goals.”
The ABA and individual banks have worked collaboratively since the Reconciliation Australia Workshop on 'Improving Financial Services for Indigenous Australians' held in May 2002. The major need identified in that process has been the level of financial literacy amongst remote and indigenous communities, something that banks continue to be committed to improving.
The ABA’s submission also contains the results of the assessment study of the banking needs in each of the 32 identified communities with populations over 200 that do not have access to over-the-counter banking facilities within 20 kilometres of the community.
The study demonstrates that the banking needs of remote communities and the problems they face are shaped by a combination of factors.
The ABA’s assessment study found that:
· over-the-counter banking services in remote and very remote areas has grown by 3 branches and 29 other face-to-face services, a total increase of 8% in the past year to June 2002;
· at least half of the 32 towns identified do have over-the-counter banking facilities, and in many cases a bank agency, with a giroPost or a Rural Transaction Centre (RTC) either locally or in a community nearby (within 20 km in most cases);
· a number of member banks have been working to improve financial literacy or banking practices in regional Australia, in association with government agencies and in particular focussing on indigenous people;
· most often there is a lack of regional economic development in these areas which exposes the area to the fortune or volatility of a single industry or a dependence on government support payments;
· a barrier to expanding telephone and Internet banking is the absence of minimum quality and availability of telecommunications infrastructure.
David Bell, Chief Executive of the ABA, said: “These communities generally do not enjoy a solid regional economy, poor literacy skills have been identified, the quality of infrastructure is poor for example, telecommunications, which if improved may enable greater electronic banking.”
“We hope that the Joint Parliamentary Committee will identify a lead agency to ensure that the necessary investment in technology infrastructure takes place.”
“Where communities cannot support an over-the-counter banking service, the banking industry would also like to encourage Australia Post to fill these gaps. For example, it could expand giroPost into the remaining 1000 post offices that currently do not provide the service and roll-out business banking access into all rural sites.”
The ABA looks forward to continuing consultation with the committee and to undertaking further work in partnership with Governments and other stakeholders which may benefit Australia’s regional communities.
For further information:
Heather Wellard Claire Tedeschi
ABA Public Relations Reconciliation Australia
Phone: 02 8298 0411 Phone: 02 6273 9200
Mobile: 0409 830 439 Mobile: 0418 633 277
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