Sydney, 11 June, 2004: The Australian Bankers’ Association (ABA) supports the establishment of a coordinating body that better connects financial literacy education providers with consumers of that information.
This approach is outlined in a discussion paper ‘Australian Consumers and Money’, by the Consumer and Financial Literacy Taskforce, which was today launched in Sydney by Senator the Hon Helen Coonan, Minister for Revenue and Assistant Treasurer.
Chairman of the ABA and member of the Consumer and Financial Literacy Taskforce, John McFarlane, said the banking industry is looking forward to participating in the consultation with the community on the Taskforce’s discussion paper and the ABA will be preparing a submission.
“The banking industry has committed to a long-term strategic priority of helping improve Australians’ financial literacy. This includes helping increase understanding in the areas of investment, superannuation and retirement planning and in assisting the most vulnerable sections of the community, many of whom are struggling with financial skills,” said Mr McFarlane.
“At the heart of a customer’s relationship with a bank is trust. It is difficult to gain and maintain trust if people are confused, or do not understand their financial position and the terms on which the relationship is based. I acknowledge while we have taken some steps, there is still much work to be done by the financial services industry to explain and market its products and services to customers simply and clearly.
“Empowering people with the appropriate financial skills, knowledge and information will ensure they are better placed to make informed decisions about their money and avoid being misled on financial matters,” he said.
The ABA last year launched an industry program designed to help improve Australians’ financial literacy. The program ‘Broadening Financial Understanding’ aims to assist Australians make informed judgements and effective decisions about the use and management of their money at all stages of their lives.
David Bell, Chief Executive of the ABA, said: “One of its first steps was to consult with community groups about their clients’ financial literacy needs. The ABA held a workshop in March this year which brought together national and international experts, consumer representatives, policy makers and bank representatives to discuss contemporary issues and future challenges in improving financial literacy.”
A report prepared on the conference, ‘Broadening Financial Understanding Workshop – Summary of Outcomes’ will be incorporated into the ABA’s submission to the Federal Government on the Taskforce’s discussion paper.
Notes for editors:
For a copy of the Taskforce’s discussion paper ‘Australian Consumers and Money’ please go to this website: http://cfltaskforce.treasury.gov.au.
Please click here for a copy of the ‘Broadening Financial Understanding Workshop – Summary of Outcomes’ – Word or PDF.
For further information:
Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
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