VIEWS: 9 PAGES: 6 CATEGORY: Auto & Home Loans POSTED ON: 10/4/2010
Home loans to buyers who refers to buildings in the housing transaction as collateral to banks for loans to cover the mortgage, then the buyers loan installments to the bank debt service.
Home ownership and Indigenous Australians Report on Home ownership and Indigenous Australians (PDF, 270kb) is a report by ANZ into how the bank can best help more Indigenous Australians buy a home. In Australia, home ownership by Indigenous people is low, both compared to non-Indigenous Australians and Indigenous peoples in other developed countries. Our key findings from research and consultation with over 400 people are that we should: focus on Indigenous home ownership principally because of the potential business opportunity in an under-served market use existing products, with tailored marketing and distribution models to better serve Indigenous customers do much more to welcome and better understand and respond to the needs of Indigenous customers Given the structural issues inhibiting home ownership in remote areas of Australia, ANZ was encouraged to, in the near term, promote home ownership in urban and regional areas. Read a summary of the report (PDF, 53kb) Find out more about Home ownership and Indigenous Australians: Key Findings What ANZ will do Why did we conduct this research? Who we consulted with Case study- Port Augusta Key Findings There is an under-serviced market Our key finding from research and consultation with over 400 people is that we should focus on Indigenous home ownership principally because of the potential business opportunity in an under- served market, within the context of our broad corporate responsibility. Home ownership is as strong an aspiration for Indigenous Australians as it is for other Australians. We found the more sustainable response to this need would be to use our existing products and tailor our marketing and distribution of these products to better assist Indigenous consumers. ANZ was encouraged to promote home ownership in urban and regional areas where there is reliable housing supply, employment opportunities, economic and social infrastructure and accessible banking services. The barriers to home ownership in remote and very remote communities are more significant and financial service providers should continue to work with communities, government and other stakeholders to better understand and address these barriers in the longer term. We can improve the way we serve Indigenous Australians Many Indigenous Australians in urban and regional areas meet bank lending criteria but may not consider home ownership due to preconceptions of not receiving approval for a loan or fear of not being welcomed or understood. Banks may inadvertently discourage approaches by Indigenous customers by applying standard customer and credit processes unsuited to personal circumstances. We should therefore focus our efforts on behavioural change. This includes developing a closer understanding of Indigenous customer needs, better tailored customer communications and a greater awareness of Indigenous culture and experience. Our current work in this area is heading in the right direction We have started on this work: our Indigenous employment targets will help us become more representative and understanding of the communities we service, particularly in regional areas; we are equipping our staff with the knowledge and skills they need to better serve Indigenous customers through cultural awareness training; and we are continuing to work in partnership with communities and government to develop and deliver financial literacy programs to Indigenous Australians. Find out more about Home ownership and Indigenous Australians: Home ownership and Indigenous Australians What ANZ will do Why did we conduct this research? Who we consulted with Case study- Port Augusta What ANZ will do We identify in our Report (PDF, 270kb) five things we can work on immediately to improve the rate of home ownership among Indigenous Australians: 1. Improve our interactions with Indigenous customers We will build into our business processes the means to better welcome, understand and meet the needs of Indigenous customers. This includes making available to our staff cultural awareness programs that result in more effective and efficient interactions with Indigenous customers. We will also continue recruiting more Indigenous staff so that we are more representative of the communities we serve. 2. Facilitate more home loans and extend full service banking ANZ will actively seek relationships with existing specialist providers of Indigenous home loans to: accept referrals from existing providers of home loans of customers who are looking to move their loan to a mainstream institution establish full service banking relationships for Indigenous customers of existing providers when they transition to mainstream banking. This will be achieved through tailored service to offer a greater variety of products such as saving and investments, insurance and business products We will also participate and support Indigenous Business Australia to help customers wishing to refinance, invest or seek business finance. 3. Help improve the capacity of Indigenous customers ANZ will offer a dedicated financial literacy module on home ownership through our MoneyBusiness and MoneyMinded financial literacy programs. We will also make available in branches a simple step-by-step guide to Indigenous home ownership with information on borrowing funds and buying and maintaining a home. 4. Work with employers of Indigenous people We will work with employers of large numbers of Indigenous people – such as in the mining industry - to provide opportunities to improve employees’ financial literacy and access to banking services. 5. Continue learning ANZ will continue to seek new information and solutions on the topic of Indigenous home ownership through our involvement in industry and community forums such as the Indigenous Financial Services Network (IFSN) Read a summary of the report (PDF, 270kb) We will report on our progress against these actions, through our regular stakeholder bulletin and our interim and annual Corporate Responsibility Reports. Find out more about Home ownership and Indigenous Australians: Home ownership and Indigenous Australians Key Findings Why did we conduct this research? Who we consulted with Case study- Port Augusta Why did we conduct this research? The rate of Indigenous home ownership in Australia (36%) is low relative to non-Indigenous Australians (71%) and also when compared to Indigenous peoples in other developed countries. Home ownership has been linked to various social and community benefits and many experts have recognised its importance in improving the lives of Indigenous Australians. Home owners are more likely to contribute to local community organisations, work together to solve local problems and see their children stay at school longer. ANZ is one of the largest mortgage providers in Australia and assists hundreds of Australians achieve home ownership everyday. Our commitment to improving the rate of Indigenous home ownership is one step toward better understanding and meeting the needs of all of our customers, including Indigenous Australians. Find out more about Home ownership and Indigenous Australians: Home ownership and Indigenous Australians Key Findings What ANZ will do Who we consulted with Case study- Port Augusta Who we consulted with ANZ consulted with over 400 people in 2007 to seek views about how we can best help improve the level of home ownership by Indigenous Australians. Read the Discussion Paper. Report on Home ownership and Indigenous Australians (PDF, 270kb) is the result of this consultation and research into the relevant issues and experience here and in other countries. It analyses the feedback we received from Indigenous people, community groups, housing groups, financial services providers, ANZ people and government agencies. It also sets out ANZ’s proposed actions in response. Find out more about Home ownership and Indigenous Australians: Home ownership and Indigenous Australians Key Findings What ANZ will do Why did we conduct this research? Case study- Port Augusta Case study – Port Augusta ANZ’s branch in Port Augusta in South Australia is an example of how employing staff that is representative of the community can help break down some of the intimidation felt by Indigenous people towards banks. In July 2007, ANZ became the first bank in 50 years to open a new branch in Port Augusta, a busy regional centre which is home to 14,000 people, 18 percent of whom are Indigenous Australians mainly from the Bungarla nation. An important part of making any new branch work is understanding and responding to the needs of all potential customers. In the case of Port Augusta, that includes the town’s substantial Indigenous population. “From the outset we knew that if we were to be successful in Port Augusta, we had to engage our local Indigenous people in everything we were planning,” said ANZ’s Regional Manager Adam Moss. “In particular, we were especially keen on listening and understanding views on existing banking services.” Feedback from local focus groups told us our success in the area depends heavily on whether Indigenous residents feel comfortable and confident banking with ANZ. One way to do this was to ensure there was the right mix of Indigenous representation behind the branch counter. Two of the branch’s eight staff were recruited from the local Indigenous community, and this simple step has helped attract Indigenous customers. Indigenous staff have also helped to informally coach colleagues to better meet the needs of Indigenous customers. Service consultants Talisha Brown and Chez Reschke have shared the importance of communicating clearly through positive inclusive language, the use of story telling, “doing what you say” and recognising the central role family plays for Indigenous people. Talisha said: “My family and friends are proud that ANZ seems to really value our community and place in Port Augusta. Being in this role has given me the opportunity to gain confidence and to encourage Indigenous and non-Indigenous youth to feel more confident in the work industry.” Read more about the Port Augusta branch in the full Indigenous Home Ownership Report (PDF, 270kb). Find out more about Home ownership and Indigenous Australians: Home ownership and Indigenous Australians Key Findings What will ANZ do Why did we conduct this research? Who we consulted with
"ANZ Indigenous Home Ownership"