Guide to Giving
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  |  General, Leadership, Research

Financial Inclusion Critical for Economic Growth – NFP Report


Thursday, 19th June 2014 at 10:23 am
Staff Reporter
If just 7 per cent of financially disadvantaged Australians were able to improve their wealth position, the nation’s annual gross domestic product (GDP) could increase by as much as $19.7 billion, new research claims.

Thursday, 19th June 2014
at 10:23 am
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Financial Inclusion Critical for Economic Growth – NFP Report
Thursday, 19th June 2014 at 10:23 am

If just 7 per cent of financially disadvantaged Australians were able to improve their wealth position, the nation’s annual gross domestic product (GDP) could increase by as much as $19.7 billion, new research claims.

The research says household wealth could increase by as much as $50 billion over time, and could also lead to a predicted $2.6 billion saving in Government health, welfare and justice spending.

The Microfinance and ‘Inclusion’ and Economic Growth Report was commissioned by Good Shepherd Microfinance and conducted pro-bono by Strategic Project Partners (SPP).

Unveiling the report at the National NILS Conference 2014 in Brisbane, Good Shepherd Microfinance CEO Adam Mooney said greater investment in microfinance was a critical component of economic and social progress in Australia.

“More than 17 per cent of Australia’s adult population – or one in six people – have no access to basic financial services such as a bank account, insurance or a minimum amount of credit,” Mooney said.

“This new report adds to the mounting evidence demonstrating profound benefits for both individuals and society generally if we can move even a small number of people away from financial hardship towards resilience and self-sufficiency.

“It is clear increasing basic financial access will reduce government spending on health, welfare and crime. It will improve productivity, employment and consumption, which all work towards boosting GDP.

“Right now both at State and Federal level we are seeing governments facing huge budget challenges.

“In fact some of the initiatives and savings outlined in State and Federal budgets will have a significant impact on the people we work with and it is highly likely there will be increased demand for microfinance and financial advisory services in the coming years.

“If we embrace this principle of financial inclusion the flow on effect will free up government funding, allowing greater budget allocation for areas such as education, housing and infrastructure.”

Mooney said well developed and implemented financial system reform, along with employment and enterprise policy improvements were vital.

“We have set an audacious goal to reach one million clients by 2018. We are committed to working with government and business to develop innovative solutions to address the issues of financial exclusion,” he said.

“Microfinance helps people on low incomes to become financially independent and achieve substantial social and economic improvements.

SPP Managing Partner Phil Noble said the research assumptions provided a useful starting point to understanding the broad range of economic benefits that could come from programs in this area, including financial inclusion.

“This report shows us that there are major benefits from increasing financial inclusion when it comes to breaking the negative cycle for many excluded households,” he said.

“It challenges us to think about ways that we can enhance access to the basic financial services that we all take for granted.

“More study, and a deeper survey following the paths of those that are given greater access to financial services, would be invaluable in understanding the pay-off that programs such as those offered by Good Shepherd Microfinance can deliver.”



AON

FEATURED SUPPLIERS


Helping the helpers fund their mission…...

FrontStream Pty Ltd (FrontStream AsiaPacific)

NGO Recruitment is Australia’s not-for-profit sector recru...

NGO Recruitment

HLB Mann Judd is a specialist Accounting and Advisory firm t...

HLB Mann Judd

Brennan IT helps not-for-profit (NFP) organisations drive gr...

Brennan IT

More Suppliers


YOU MAY ALSO LIKE

Susan Pascoe Appointed Head of Newly Formed Community Directors Council

Luke Michael

Friday, 22nd September 2017 at 5:21 pm

AICD Announces NFP Scholarships Across Australia

Luke Michael

Wednesday, 20th September 2017 at 12:10 pm

Majority of NFPs Are Not Believed to be Well-Run, According to New Survey

Luke Michael

Tuesday, 12th September 2017 at 4:14 pm

POPULAR

Moves to Stop Volunteering at Overseas Orphanages

Luke Michael

Wednesday, 13th September 2017 at 1:54 pm

Future Uncertain for Disability Organisations Following Funding Cuts

Wendy Williams

Tuesday, 19th September 2017 at 8:29 am

Majority of NFPs Are Not Believed to be Well-Run, According to New Survey

Luke Michael

Tuesday, 12th September 2017 at 4:14 pm

More Australians Are Giving Time Not Money

Wendy Williams

Monday, 11th September 2017 at 5:07 pm

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


Guide to Giving
pba inverse logo
Subscribe Twitter Facebook

The social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!