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NAB Community Newsletter - April 2009
NAB support continues for communities devastated by Victorian fires
The tireless work of volunteers and the donations made to the 2009 Victoria Bushfire Relief Fund has lessened the burden for many Victorians impacted by the devastating bushfires.
Walking the talk on reputation and community trust
In his speech at the Australia-Israel Chamber of Commerce, NAB CEO Cameron Clyne outlined the work NAB is doing to build reputation and community trust.
NAB and TCU - working together
NAB and the Traditional Credit Union (TCU) are exploring new ways to work together and have recently created two TCU secondment opportunities for NAB employees.
NILS goes to Alice
The No Interest Loans Scheme (NILS) has extended its reach and will be accessible to low-income people living in Alice Springs.
Five states on board with affordable loans program
The Tasmanian operations of StepUP, a unique low-interest loan program designed and managed by NAB and Good Shepherd Youth and Family Service was launched in February by Senator Nick Sherry, Minister for Superannuation and Corporate Law.
Helping outstanding young Australians realise potential
With the support of the Australian Islamic community, NAB is offering an opportunity for an outstanding young Australian to reach their potential through the NAB Sheikh Fehmi El-Imam Scholarship.
School-community partnerships - want a piece of the $5 million pie?
With a prize pool of $5 million every year for three years, NAB's Schools First initiative is a national awards program that provides financial recognition and support to build and enhance effective school-community partnerships.
A bright idea, a rare opportunity and a NAB Microenterprise Loan
In good news for NAB Microenterprise loan customers, NAB decreased the fixed interest rate from 9.95%p.a. to 5.99%pa effective 16 March 2009 (for new and existing Microenterprise Loan customers).
Better Buddies expands to 300 primary schools
150 additional schools have joined the Better Buddies Framework in 2009 to help create a friendly and caring atmosphere and reduce instances of bullying within the school.
Fringe lending pilot brings transparency in tough times
With predictions of a deepening economic crisis, NAB's small loans pilot is well-timed to expose the true costs in the payday and fringe lending market.
Groups get a boost with NAB Community Grants
Each month, the NAB Community Grants Program gives $4000 each to community groups that rely on volunteer support, based on nominations submitted from NAB employees.
Your feedback is important to us. Email: community@nab.com.au
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NAB support continues for communities devastated by Victorian fires
The tireless work of volunteers and the donations made to the 2009 Victoria Bushfire Relief Fund has lessened the burden for many Victorians impacted by the devastating bushfires.
A total of $21 million has been raised through NAB branches and internet banking for the Victorian bushfire appeal, including a $1 million NAB cash donation.
NAB has also helped customers whose property has been lost or destroyed in the Victorian bushfires with a package that includes:
- a $10,000 grant for the full loss of home, farm building or business premises that are secured against a mortgage held by NAB.
- a $5,000 grant for the partial loss of home, farm building or business premises that are secured against a mortgage held by NAB.
- waiver of loan establishment fees for customers who plan to rebuild homes, farm buildings or business premises that have been destroyed by bushfires
- waiver of excess for all home, contents and motor insurance claims on policies held through National Homes Insurance (underwritten by Allianz).
Over 250 customers have accessed these grants with nearly $2 million in cash assistance given directly to customers.
To discuss the relief measures available, customers should contact 136 NAB (136 622) from 8am Monday 9 February, or visit their local branch.
Walking the talk on reputation and community trust
In his speech at the Australia-Israel Chamber of Commerce, NAB CEO Cameron Clyne outlined the work NAB is doing to build reputation and community trust.
Drawing on his conversations with customers, employees and the community, this work will focus on three key areas:
- Communication - in particular on interest rates. Being more transparent, educative and open about how NAB funds itself and how interest rates are set.
- Providing even greater accessibility to financial services for people who are on low incomes or, for whatever reason, are marginalised, suffering hardship or excluded from mainstream financial services. This work will build on our award-winning micro-lending programs and the actions outlined in our Reconciliation Action Plan (RAP).
- Raising awareness and improving transparency around fees so that NAB customers can be more confident that they will only pay fees for services they explicitly want.
Cameron concluded that while this work requires a long-term focus and there's no easy solution, NAB is focussed on building greater community trust and recognises this as a strategic priority for its business and also the wider financial services industry.
For more details, read Cameron's speech to the Melbourne Australian-Israel Chamber of Commerce at
20090325_AICCAddressByCameronClyne.pdf
NAB and TCU - working together
NAB and the Traditional Credit Union (TCU) are exploring new ways to work together and have recently created two TCU secondment opportunities for NAB employees.
This builds on the work NAB and the TCU are doing to open new TCU branches in remote locations in the Northern Territory.
The TCU has been operating for almost 15 years and the majority of Aboriginal staff speak the local languages of the customers they serve. The TCU plans to increase access to its financial services for more than 3,250 Indigenous customers, over the next five years with NAB's support.
The secondment opportunities reflect NAB's commitment to building respectful, two-way learning relationships with organisations already working with Indigenous communities, like the TCU.
"Our Reconciliation Action Plan has a number of commitments that will help make a positive difference and reduce the disadvantage Aboriginal people in remote locations face," said Stephanie Rice, NAB's Indigenous Affairs Manager.
“Equally, it's about building bridges with Indigenous communities to increase our awareness of Aboriginal and Torres Strait Islander culture,” added Stephanie.
The opportunities form part of NAB's broader commitment to lift its focus on and involvement with Indigenous Australians. The two 12 month TCU secondment opportunities include:
- a TCU Business Development Manager role (Darwin)
- a TCU Branch Supervisor role (Groote Eylandt, NT)
The work NAB is doing with the TCU is one of many ways we are building a greater organisational understanding of and respect for Indigenous Australians, culture and aspirations and addressing financial exclusion.
To read NAB's Reconciliation Action Plan, visit www.nab.com.au/indigenous.
NILS goes to Alice
The No Interest Loans Scheme (NILS) has extended its reach and will be accessible to low-income people living in Alice Springs.
NILS is a national program developed by Good Shepherd Youth & Family Service and delivered by over 280 community organisations across the country (NAB has been working with Good Shepherd and State Governments to ensure the growth of this important program across Australia).
Through NILS, low-income consumers are provided with access to funds so that they are able to purchase essential household items.
The local Alice Springs community can access the program through Anglicare NT. NAB has provided the program's loan capital and is funding the micro-credit worker who will work with loan applicants. The funding of this role reflects NAB's commitment to support financial inclusion within Indigenous communities.
Minister Karl Hampton will launch the program in April.
Read more about NAB's commitment to microfinance at www.nab.com.au/microfinance..
Five states on board with affordable loans program
The Tasmanian operations of StepUP, a unique low-interest loan program designed and managed by NAB and Good Shepherd Youth and Family Service was launched in February by Senator Nick Sherry, Minister for Superannuation and Corporate Law.
Tasmania is the fifth state to embrace this multi-award-winning loans program designed for people on low incomes who are struggling to secure credit for much-needed household goods or services.
StepUp loans are a fixed-rate, low interest, unsecured personal loan for amounts between $800 and $3000. A feature of the program is an application and repayment process that includes face-to-face financial mentoring.
The launch coincides with NAB's announcement to almost halve the StepUP interest rate to 3.99%pa which is fixed for the term of the loan (effective 23 February 2009).
“The impact of the StepUP program cannot be underestimated - since its launch in 2004, micro-credit workers have had over 6,000 financial conversations about budgeting and how to access appropriate financial products and services," commented Richard Peters, Head of NAB's Community Finance & Development team.
"StepUP meets a very real community need and its expansion across five states in five years has provided thousands of low-income Australians with positive banking experiences as well as access to fair and affordable credit", added Mr Peters.
More information about StepUp can be found at www.nab.com.au/microfinance.
Helping outstanding young Australians realise potential
With the support of the Australian Islamic community, NAB is offering an opportunity for an outstanding young Australian to reach their potential through the NAB Sheikh Fehmi El-Imam Scholarship.
The NAB Sheikh Fehmi El-Imam Scholarship is designed to strengthen links between NAB and the Muslim community. The Scholarship enables an undergraduate student to continue their post-graduate studies in finance and/or economics, here in Australia or at an overseas university.
The winner receives a one-off scholarship payment of $25,000 towards advanced study in finance or economics, and employment with NAB* (full-time or part-time) for 12 months during or at the completion of their post-graduate studies. A special feature of the Scholarship is to encourage the development of Shariah-compliant financial products and services.
The successful applicant will be an active community participant with a track record demonstrating leadership and initiative. The scholarship will enable the applicant to fulfil their personal and professional potential in the area of Shariah-compliant finance.
The 2007 scholarship winner, Melbourne PhD student Imran Lum, is currently completing a 12 month employment contract with NAB. "The Islamic finance industry is now worth an estimated US $1 trillion and it continues to develop at a rapid rate,” said Imran. “This scholarship has not only enabled me to further my academic understanding of the industry, it has also given me practical experience in the complexities associated with developing a viable Shariah-compliant product."
Applications for the 2009 Scholarship close Friday 17 July and more details can be found at www.nab.com.au/wps/wcm/connect/ nab/nab/home/about_us/4/1/1/7/6
School-community partnerships - want a piece of the $5 million pie?
With a prize pool of $5 million every year for three years, NAB's Schools First initiative is a national awards program that provides financial recognition and support to build and enhance effective school-community partnerships.
All Australian primary and secondary schools can apply for Schools First funding for their community partnership from 1 July - 14 August 2009.
To explain the nomination process, Schools First is running a series of 80 workshops across the country. The workshops are free-of-charge and open to school staff, principals, school councils, parents, local government, State and Federal government, local business associations, health and well-being organisations and any other community group interested in partnering with a local school.
To register for a workshop, RSVP on our website www.schoolsfirst.edu.au
A bright idea, a rare opportunity and a NAB Microenterprise Loan
In good news for NAB Microenterprise loan customers, NAB decreased the fixed interest rate from 9.95%p.a. to 5.99%pa effective 16 March 2009 (for new and existing Microenterprise Loan customers).
NAB's Microenterprise Loan program offers unsecured business loans of between $500 and $20,000 for people on low incomes who have few or no avenues to access affordable business credit. To source loan referrals, NAB works with a range of business literacy training providers, like the National NEIS Association, who filter eligible applicants based on business-readiness.
Twenty-seven year old University of Newcastle graduate Michael Danvers knows first hand how a dream came to life when he received a loan to open Getnet Kiosk, a publicly accessible internet kiosk located within the John Hunter Hospital.
Michael had almost completed his Industrial Design degree when a tender was released for retail opportunities within the hospital. He approached the Hunter Business Centre for advice on setting up a small business, and was introduced to NAB's Microenterprise Loans.
“I was up against some major competitors but found that living locally and being prepared with an in-depth business plan worked in my favour. The NAB Microenterprise Loan was perfect for setting up my business, from registering the name to buying all the necessary equipment to build the kiosk,” Michael said.
In 2008, NAB announced a further $100 million in loan capital to support micro-businesses in Australia. As at March 2009, 53 entrepreneurs have been supported with $2.3 million in loan capital.
For more information, visit www.nab.com.au/microenterpriseloans
Better Buddies expands to 300 primary schools
150 additional schools have joined the Better Buddies Framework in 2009 to help create a friendly and caring atmosphere and reduce instances of bullying within the school.
The Alannah and Madeline Foundation (AMF) introduced the Better Buddies Program into 30 schools in 2007, and with the support of NAB has increased the number of participating schools to 300 in 2009.
Each participating school is matched with a NAB Buddy - a local NAB representative that will attend and support Better Buddies school events throughout the year to help create a safe environment for all children, free from violence and bullying.
One in six children suffer weekly from the effects of bullying, which often occurs at school - in the classroom, in the playground and through the corridors. The Better Buddies Framework is tailored to reduce this impact and introduce a positive vibe into the school community.
Older children in grades five and six ‘buddy up' with those in prep to introduce and learn the values of the framework: caring for others, friendliness, respect, valuing difference, including others and responsibility.
Each new Better Buddies school will receive a set of purple ‘Buddy Bears' to launch the program at their school, along with a host of other items throughout the year that will be delivered by their local NAB Buddy.
NAB has been a proud partner of the Alannah & Madeline Foundation since 2006 and has dedicated in excess of $2.2 million to date, contributing to the development of key initiatives to provide children with a safe and happy childhood.
NAB's ultimate goal is to assist AMF in building Better Buddies to be implemented in all primary schools across Australia.
Read more about Better Buddies at www.nab.com.au/wps/wcm/connect/nab/n ab/home/About_Us/5/3/13/
Fringe lending pilot brings transparency in tough times
With predictions of a deepening economic crisis, NAB's small loans pilot is well-timed to expose the true costs in the payday and fringe lending market.
As the only big bank actively participating in Australia's alternative finance market, NAB has taken a unique leadership role and hopes to make a significant contribution to stimulate much-needed debate on the issue of non-mainstream lending.
NAB also supports measures by the Federal Government to regulate fringe lenders as part of a proposed overhaul of consumer credit laws to be phased in from mid-2009.
NAB's Head of Community Finance & Development, Richard Peters, said that nine months into the pilot, plans to test a breakeven interest rate (where revenues fully cover costs) were tracking well.
“Data indications are that the actual breakeven rate of 27.92% (or 15.76% as a percentage of the initial loan amount) is slightly less than forecast and remains well below current industry practice,” Mr Peters said.
The pilot is not a commercial venture for NAB, but an extension of NAB's microfinance programs that aim to address financial exclusion by creating fair and affordable loan options.
Money Fast Chief Executive Officer, Justin Hatfield, said the pilot sought to demystify a sector where many players exploited loopholes to charge vulnerable consumers with high rates and charges.
“Fringe lending is an area that takes advantage of people facing difficult times. Recent indicators are that more people are entering this market as a result of a downturn in financial circumstances due to employment status and income levels,” Mr Hatfield said.
Read more about NAB's Small Loans Pilot at www.nab.com.au/smallloanspilot
Groups get a boost with NAB Community Grants
Each month, the NAB Community grants program gives $4,000 each to community groups that rely on volunteer support, based on nominations submitted from NAB employees.
Grants are awarded to eligible nominations that demonstrate how the grant will enhance the volunteering capacity of the community organisation and ultimately, the impact on the community.
Some recent recipients are:
- Fight Cancer Foundation's Back on Track program supports Australian children living with cancer to stay connected to their schools, teachers and peers ensuring they develop educationally, physically and emotionally. The program recently received a NAB community grant to fund the production of marketing materials aimed to attract new volunteers. (Nominated by NAB employee Barry Lumsden.)
- Womens Health Victoria, a national women's health promotion, information and advocacy service works with health professionals and policy makers to influence and inform health policy and service delivery for women. The group's NAB Community Grant will help volunteers with public speaking engagements to share their experiences on women's health issues. (Nominated by NAB employee Naomi Renza.)
- Fareshare, a community organisation that sources food that would otherwise be wasted and cooks nutritious meals for distribution to hundreds of community organisations who then feed the disadvantaged. The grant will assist in recruitment costs to employ a full-time volunteer coordinator. (Nominated by NAB employee Lynne Parker.)
- Saint Kilda Youth Services (SKYS) helps underprivileged and homeless youth to re-engage with mainstream society, employment or further study/training by running short term education and training courses in hospitality, media and retail industries and generalist secondary school education modules. The grant will be used to purchase a new database software package and replace an existing inefficient data collection system. (Nominated by NAB employee Shehan Dhanapala.)
Visit www.nab.com.au/volunteeringfor more information about NAB's volunteering program.
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