The National Australia Bank (NAB) came toegether wiht the Centre for Social Impact (CSI) at the University of New South Wales to release the largest study of its kind.
According to the Indicator, 2.65 million adults would have difficulty raising $3000 in an emergency and many lack access to basic banking services.
The Indicator shows that the factors leading to financial exclusion include:
- Cost: the average annual cost of basic financial services in Australia is $1740. That’s more than 15 per cent of income for around 10 per cent of adults in Australia.
- Accessibility: internet banking is only used by 54.5 per cent of the population and access to ATMs in rural and remote areas is more difficult than in urban areas.
- Demographics: people with low levels of education, born overseas with English as a second language, aged under 24 or over 65, or unemployed are more likely to be excluded.
- Supply, including the promotion of inappropriate credit products and the absence of basic, affordable insurance products.
Prof. Peter Shergold, Director of CSI, said “the NAB/CSI Financial Exclusion Indicator is… the first time Australia has been able to measure and understand the full dimensions of financial exclusion. It will guide public policy and influence corporate practice.”