Indigenous credit union invites partnerships
26 February 2008
Traditional Credit Union (TCU) is seeking partners to boost its capacity to provide banking services and promote financial literacy in remote Aboriginal communities across the Top End.
Speaking at today’s launch of Banking For The Future, a paper on financial services and financial literacy for Indigenous Australians, TCU General Manager Cathy Hunt said TCU had the track record and proven expertise to make a difference.
“TCU is an Aboriginal-owned Authorised Deposit-taking Institution subject to the same prudential regulatory framework as the Commonwealth Bank. We have been in business since December 1994,” Ms Hunt said.
“Whereas the majority of Aboriginal people, 70 per cent, live in urban and regional areas, our members mainly live in remote communities and English is their second, third or maybe even fourth language.
“We offer our members face-to-face and electronic banking services, including internet banking. We provide personal loans, mostly for household goods. Many of our loans are taken out by women for refrigerators and washing machines. We don’t provide home loans. There is, currently, very little demand for home loans in our communities.
“We have 13,000 members and 12 branches. We provide banking services by Aboriginal people to Aboriginal people where they live.
“Our members live in communities where many people are welfare dependent and have been for most of their lives; where facilities such as schools and clinics are limited; where jobs are few; and where housing is heavily overcrowded.
“In operational terms, we face some unusual challenges.
“Occasionally, we need to deal with a curse being put on our premises. If staff are too scared to go to work, we need to find someone to smoke the branch before we can resume operating there.
“Our costs of employing staff, accessing and running branches in remote communities are high. Many of our communities are accessible only by aircraft or by barge. Some charter flights in the Top End cost more than an international business class fare.
“That is why we are looking to form new partnerships with stakeholders such as other financial services businesses. For example, ANZ Bank is currently a highly valued partner in assisting TCU to deliver a financial literacy project in remote Top End communities.
“The objectives of this project include helping our members to build better lives for themselves and improve their living standards through enhanced money management,” Ms Hunt said.
TCU is a member of Abacus – Australian Mutuals, the industry body for Australia’s 146 credit unions and mutual building societies.
Cathy Hunt’s speech is available here.
For more information:
Cathy Hunt, General Manager
Traditional Credit Union Limited
0429 095 966 or 08 8927 3300
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Luke Lawler, Senior Adviser
Abacus – Australian Mutuals
0418 213 025 or 02 6232 6666
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