1) 17.7% of Australians, or around 3.12 million adults, are financially excluded from mainstream financial products and services like transaction accounts, credit cards, and insurance. 2) Financial exclusion means people cannot afford basic needs, do not have money to pay for emergencies, and are vulnerable to predatory lending. 3) NAB has launched several microfinance programs over the years like NILS, StepUP loans, and AddsUP savings to help underserved populations gain access to affordable credit and savings options. The volume of their microfinance loans has increased substantially each year.

1. NAB’s discovery of
underserved markets:
Corinne Proske, Head of Community Finance & Development
August 2013

2. 17.7 % of Australians are financially excluded
• 3.12 million Australian adults are either fully or severely excluded from
accessing mainstream financial products and services including a
transaction account, credit card and general insurance.*
• Financial exclusion often means people:
– can’t afford basic personal and household items like a washing
machine or a fridge
– don’t have the ability to source money to pay for an emergency,
unexpected bill, or income shock
– are vulnerable to predatory lending
(*Source: NAB/CSI Financial Exclusion Indicator, 2013)

3. Australian financial exclusion data
Product ownership exclusion 2007-2012
17.7% of
population are
fully or
severely
excluded

4. The financial landscape
NILS
Step UP
MEL
Savings/insurance
MAINSTREAM
7000 loans
High
cost
Low cost
NAB Microenterprise
Loans
Business Personal
Fringe / Pay Day Lenders
NAB Business Banking
- Day to Day Banking
- Finance & Loans
- Investments
- Insurance
Mainstream Finance
NAB Personal Banking
- Everyday Transaction Accounts
- Credit Cards
- Personal Loans
- Home Loans

5. Microfinance - what has been achieved?
First NILS
sponsorship
Partnership with Good
Shepherd Youth &
Family Service
Launched StepUP
Loans
Microenterprise
Loans
Announced
additional
$100m in
microfinance
capital
Microfinance capital
of $30m announced
Launched AddsUP
matched saving
product
2003
2004
2009
2006
2007 2011
CSI/NAB financial
exclusion indicator
launched
2010
Federal Government
supports NILS,
StepUP and AddsUP
programs with $18.5m
for two years
2002
1998
Launched the NAB
Concession Card
Account and Fee
Saver Accounts for
community groups
Community
stakeholder forums to
gain feedback on
branch closures and
transaction accounts
$4m funding allocated to
Good Shepherd from Vic
Govt for Good Money
2008
Started NAB Small
Loans Pilot
Federal Government
supports NILS, and
StepUP programs with
$26m for four years
CDFI pilot launched, NAB
supporting Fair Loans and
Fair Finance with $1m
each in capital
2012
Reached 60,000
Microfinance Loans
Open three Good
Money shop fronts.
2013
Federal
Government
supports NILS,
StepUP and
AddsUP
programs with
$4.5m for two
years
Federal Government
supports NILS,
StepUP and AddsUP
programs with $18.5m
for two years Expect to write a
total of $100
million dollars
in loans

6. Volume Of Microfinance Loans
19508
23364
15752
4269
8633
0
5000
10000
15000
20000
25000
FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13
*YTD
Where are we today?
An 82% increase
on the year prior
More than
100% increase
on prior year
A 48% increase
on the year prior
*FY 12/13 data From
Oct12-June13 ends
September 2013

7. How are we performing ?

8. 8
The opportunity
.