Hearts Small Big - Good Shepherd Microfinance
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Big Small Loans Hearts 2017 Annual Report
Contents
Good Shepherd Microfinance is part
of the Good Shepherd Australia New
Zealand network, which was established
by the Sisters of the Good Shepherd.
About us 3
Good Shepherd Australia New Zealand
was established to ensure the continuity Chair and CEO report 4
and growth of the Good Shepherd
mission in Australia and New Zealand Highlights from the year 6
following more than 150 years of history. Strategic priorities 8
Its priority and focus is disadvantaged
Mapping microfinance 10
and marginalised women and girls —
a commitment first made by Saint Mary NILS 12
Euphrasia who founded the Good
Shepherd Sisters in France in 1835. StepUP 14
Good Money 16
Good2GoNow 18
Good Insurance 19
LaunchME 20
Money Ready Toolkit 21
AddsUP 21
FIAP 22
Resilient Women 24
Volunteers 25
Reconciliation action plan 26
Partners 27
Our board 28
Financials 30
Thank you 34
Cover: Jackie and daughter, NILS client, ICAN Cairns.
2 Good Shepherd Microfinance
About Us
Good Shepherd Microfinance is Vision
Australia’s largest microfinance
organisation. We offer a range of Fullness of life for all
people-centred, affordable financial
people, living in connected
programs for people on low
incomes at different financial stages resilient communities.
of their lives.
Purpose
Our aim, together with those of our community
partners, is to enable clients to realise their To enable economic wellbeing
own economic wellbeing, as they define it and resilience for people on
themselves, through appropriate financial low incomes, especially women
services. As a result, people feel valued,
accepted, included and in control of their own and girls.
finances and lives.
Values
Human dignity, respect, social
justice, audacity, compassion
and reconciliation.
Strategic Priorities
Community – led Inform Reach Impact Strength
Annual Report 2017 3
Messages from
our Chair
AND CEO
“Small loans, big hearts” was and responds to demand from clients
the theme of this year’s national to support their small business
microfinance conference which aspirations. There are 20 participants
took place in Melbourne in August. in this program which is being piloted
It’s also a good summation of in the northern suburbs of Adelaide
the work and purpose of Good with the support of the Government
Shepherd Microfinance. of South Australia.
In the five years I have been Chair, We are very excited to hear the
Good Shepherd Microfinance has stories of businesses participating in
grown, but we have never lost sight the program such as Mama Rashida’s
of what we seek to do and why we African Cuisine business which catered
exist. Building on the 36 year history at the program launch. These stories
We put our heart
of the NILS program, Good Shepherd motivate us to do more, to reach more
into our work, each
Microfinance offers fair and affordable people, and to continue to evolve.
finance programs and products to We put our heart into our work, each and every day.
people on low incomes. We do this and every day.
because we believe everyone deserves
So while we see our programs
access to financial services, and
evolving, the values and purpose
because we seek to improve economic
at the heart of Good Shepherd
wellbeing and financial inclusion for
Microfinance remain unchanged.
people on low incomes, in particular
We continue to deliver our programs
women and girls.
and services to ensure our clients
The board was extremely proud to see have the opportunities to create
Good Shepherd Microfinance’s first a financially resilient future for
microenterprise program, LaunchME, themselves and their families.
come to life this year. LaunchME is a
natural next step for our organisation
Dr Christine Nixon APM
Chair
4 Good Shepherd Microfinance
This year has been one of growth, and a faster, simpler experience NAB, in particular, have been
investment and change for Good for borrowers. We continue to invest outstanding partners over 14 years.
Shepherd Microfinance. in growing the NILS network, but we We continue to innovate and imagine,
know more is needed to reach the through our partnership, to reach
As an organisation, we have grown
increased demand. and improve the lives of many more
over the past year and our programs
people. Our partnership is recognised
have expanded. Our clients remain at Our Financial Inclusion Action Plan
globally as one of significance where
the heart of what do and we continue (FIAP) program has progressed
we combine our strengths well.
to innovate to ensure we provide them this year. The goal for FIAPs is to
with the best possible programs and mobilise collective action on financial In partnership with Suncorp, we
services to meet their needs. inclusion for the 3.3 million people have reached over 1,000 people who
who are financially excluded. Our needed affordable, tailored contents
The No Interest Loan Scheme first 12 Trailblazers have developed and car insurance, through Essentials
their foundation FIAPs, and we have by AAI.
(NILS) reached a new milestone another 18 organisations that have
of 25,019 loans — the highest As we approach the conclusion of
committed to the program. We are
our five-year strategic plan ‘Count
number we’ve ever reached — this looking forward to celebrating the
Me In’, in 2018 I feel we are in a good
year while also undergoing changes success of phase one when we release
position to realise the ambitious goals
an evaluation report in March 2018 on
to strengthen its impact and the first year of FIAP actions.
we laid out in 2013. We look forward
increase its reach. to developing a new strategic plan,
Good Money has also grown in the one that will consolidate and build on
past year. There have been three new the considerable achievements and
Consultation took place with NILS Good Money stores opened in Cairns, progress of the past four years.
clients and people from community the Gold Coast and Morwell, with
organisations that participate in the support of the Queensland and
the program. From this process, Victorian Governments.
the ‘Strengthening NILS’ strategy
was developed. Our efforts, of course, would not
be possible without the support of Adam Mooney
New improvements will be our partners. Our partnerships with CEO
implemented in the coming year, NAB, Suncorp, The Good Guys and
including an increase in the the Australian Government are strong
maximum loan amount to $1,500 and longstanding. Their commitment
and consistency in loan purposes to our vision and purpose contributes
and approval, the introduction of significantly to expanding financial
online tools for community workers inclusion in our communities.
Annual Report 2017 5
Highlights
from the
year
$22
million 2,319
value of NILS loans StepUP loans
approved
Good2GoNow saves clients
$787,000
on home appliances
78%
of StepUP loans used for
cars or car repairs
NILS impact since 1981
230,357 6,100+
clients followers
529,821
PEOPLE across our social
media platforms
6 Good Shepherd Microfinance
2 new
Good
Money
stores open in
Queensland
and 1
> The Good Money Cairns team at the store opening in April 2017. in Victoria
23 million
8,653 in loan capital from NAB
financial conversations
through Good Money
stores
Over
440,000
12 Trailblazer
organisations
launch their own Financial
users across our
websites
Inclusion Action Plan
Microenterprise 1,000
Insurance
program policies
LaunchME, launches in SA with Essentials by AAI
Annual Report 2017 7
PROGRESS AGAINST
PRIORITiES
Priorities Key activities
Support clients to define their Our ‘Strengthening NILS’ strategy aims to increase the reach and
own economic wellbeing impact of NILS. At the same time, we’ve worked with our partner,
and then apply individual NAB, to design a new online loan to meet the needs of people
Community-led
and community strengths to who are working but need access to a small amount of credit.
realise that wellbeing
GOAL
Satisfied network: Support to deliver products, Research was undertaken with the pro bono support of data
Over 80 % say services and resources that insights company, Experian, to identify client need and map
are effective, efficient and NILS services across Australia. We continued to extend our
‘client expectation
in demand Good Insurance program in partnership with Suncorp, with 1,000
was exceeded people accessing affordable insurance through Essentials by AAI.
or met’
Positively influence financial We continued to build our social and mainstream media
PROGRESS
system reform enabling presence and are sought after for our capability in microfinance
On track equity, access and economic and financial resilience. We’ve actively contributed to policy
inclusion debates that impact people on low incomes such as payday
lending, consumer leases and insurance.
Priorities Key activities
Provide alternative people- By June 2018, we forecast to have reached 1.1 million people
centred financial services to through our programs, impacting 2.566 million people; 384,000
large numbers of people directly, 386,000 through financial conversations and 345,000
Reach through FIAPs and reform work.
Increase physical locations In 2017, we opened two new Good Money stores in Queensland
GOAL
(our own and providers) and and one in Victoria, providing people living in Cairns, the Gold
Programs reach virtual footprint (awareness) Coast and Morwell with increased access to safe and affordable
over 1 million through marketing and financial services complementing the four existing stores.
people communications Almost 450,000 people visited our programs online and NILS
and StepUP were offered in 694 locations.
PROGRESS
On track Provide a range of no-cost, The program build of our new online loan program, Speckle,
break even and self-sustaining was slightly behind schedule and will be piloted in Victoria
programs and clearly define and Tasmania in late 2017. The Good2GoNow program, in
target market criteria and partnership with The Good Guys, is moving to an online
channels platform and saved clients almost $800,000 off ticket prices.
Source and deliver essential We officially launched our LaunchME microenterprise program,
products and programs — supporting people to start their own small businesses. The
lending, saving, transacting, pilot was created through a process of human centred design
insurance, microenterprise, with clients. We’ve also worked with NAB to explore options to
asset building improve our matched savings program, AddsUP.
Use innovative technology to We received new funding from the Australian Government and
tailor programs, marketing the Ian Potter Foundation to improve our IT infrastructure, which
and referral delivery will improve the efficiency of the NILS program delivery. We’ve
also enhanced our internal capability to deliver services online.
8 Good Shepherd Microfinance
Priorities Key activities
Measure and communicate The NILS program evaluation shows that 4 out of 5 reached by
how activities contribute to the program experience economic mobility. An organisation-
client economic mobility and wide Theory of Change is being developed to evaluate our
Impact wellbeing impact. The Resilient Women Summit was well received and
focused on ways to improve financial inclusion for women.
GOAL
Partner with research centres Our partnership with EY and CSI to support the Financial
Increased to jointly undertake impact Inclusion Action Plan (FIAP) program has achieved significant
economic assessment enabling learning, milestones. Thirty organisations have committed to actions
mobility continual improvement and designed to strengthen financial resilience. The program is
shared knowledge evaluating the impact of the first year of operation.
PROGRESS
On track Examine and share impact We continued to share powerful stories highlighting the
with reference to health, impact of our programs on clients including three new video
employment, income case studies.
generation and family wellbeing
Evaluate programs against A program evaluation has been designed for Debt Deduct —
outcomes a debt consolidation pilot in South Australia. We’ve also
invested in the evaluation of our new pilot online loans program.
Priorities Key activities
Define financial inclusion We continued to communicate our financial inclusion
continuum from financial continuum to identify pathways towards greater inclusion and
crisis to financial resilience, resilience. Opinion leaders internationally have recognised the
clear pathways and programs ‘leadership from Australia’ on financial inclusion initiatives.
Inform
Partner with others to Our Advisory Services team conducts rigorous, evidence-
GOAL establish economic inclusion based research to assess the impact of our programs and to
cooperative research inform financial inclusion programs in Australia. We completed
‘Economic
five research and evaluation reports this year.
inclusion’ — term
is understood and Understand and share We regularly meet with key influencers in Australia to inform
key actors play drivers of social inclusion, policies, practices and programs that benefit people on low
their role and interrelationships with incomes. We’ve embraced the Australian Government’s new
economic inclusion priority investment approach and were actively involved in
PROGRESS policy hack sessions.
On track
Engage and influence key We continued to advocate for positive changes to Small
actors from all sectors to Amount Credit Contracts and consumer leases. We made eight
enable economic inclusion submissions this year, covering topics such as payday lending
and insurance and savings.
Priorities Key activities
Attract, develop and retain Our engagement survey will be conducted with employees in
a talented team with high late 2017 with a commitment to move to annual surveys. Most
capacity in social justice, of our team members have participated in cultural awareness
economic development training which is offered to all new employees.
Strength and creative community
engagement
GOAL
Broad funding Expand funding through A new dedicated function has improved our approach to
partnerships, donations, business development. New projects included investment
base —
sponsorship and self- from the Queensland Government to support people to
sustainable and sustaining programs prepare their finances for natural disasters and a program
growing with Housing Choices Australia to improve financial capability
PROGRESS of tenants in social housing.
On track Organisational focus on A new approach to performance plans has been developed
operational program with input from team members. Progress and Aspire plans
excellence, financial are in place for employees. We continued our strong focus on
stewardship, ethics, social risk management and capital stewardship. Our new three year
policy, accountability and strategic plan for 2018 – 2021 is being developed.
organisational development
Build mutually beneficial We’re delighted to see continued support from our major
relationships that contribute corporate partner — NAB. We’ve also strengthened our
to our vision and align with relationships with Suncorp and The Good Guys who bring
our values significant skills, insights and resources to our key programs.
Annual Report 2017 9
Mapping
MICROFI
Good Shepherd
Microfinance works with a
network of 150 community
providers across Australia.
Australian Locations New Zealand Locations
These organisations complete
a comprehensive accreditation
and training process which Good Money (7) StepUP Loan (12)
enables them to deliver
microfinance programs to Remote Services Delivery Areas NILS (13)
people on low incomes.
StepUP Loan (32)
Each provider shares our
commitment to enable clients
to define and realise their own
NILS (654)
financial wellbeing through a ACT 6 SA 35
process that treats people with
NSW 159 TAS 91
dignity and respect.
NT 6 VIC 109
The locations of these providers
QLD 149 WA 99
are illustrated here.
10 Good Shepherd MicrofinanceCo
le d
mm
unity-
NANCE
Annual Report 2017 11Co
le d
mm
I m p a ct unity-
Small
Loans
that change lives
Good Shepherd Microfinance’s No Key changes will include an increase in
Interest Loan Scheme (NILS) has been the maximum loan amount to $1,500
in operation for 36 years and continues and consistency in loan purposes and
to strengthen and grow. NILS offers approval, the introduction of online tools
fair, safe and affordable loans to people for community workers and a faster,
on low incomes for essential goods simpler experience for borrowers.
and services, such as white goods, car
repairs, furniture and medical, dental NILS continued to help some of
and educational expenses.
the most vulnerable people in our
In 2016, Good Shepherd Microfinance community, with 150 community
began a program of work aligned with
its strategic priorities to strengthen the
organisations providing access to
impact and increase the reach of NILS. NILS loans from 654 locations
The initiatives were a response to the across Australia in the past year.
57,544 recommendations of NILS providers,
and continued the ‘community-led’
In 2016 – 17, community partners
people impacted approach through consultation with
recorded nearly 67,000 enquiries
NILS borrowers and people from
about NILS and there were more than
community organisations participating
198,000 unique visits to the NILS
in the program.
website. More than 25,000 NILS loans,
To increase the reach of NILS and valued at almost $22 million were
understand the level of need and written. An estimated 57,544 people,
access to microfinance, Good including children and partners, were
Shepherd Microfinance worked with impacted by these loans.
demographic targeting experts,
Women continue to be the main
Experian, on a pro bono basis to
participants in the NILS program,
estimate the number of people who
25,019 might utilise a NILS loan in 78 regions
across the country. Experian were
at 68 per cent. The age of most NILS
clients is between 25 years to 54 years,
at 66 per cent. Aboriginal and Torres
NILS loans also able to help Good Shepherd
Strait Islander people made up
approved Microfinance understand the different
24 per cent of clients.
demographics of the people in the
target group for NILS, which will NILS is supported with operational
increase the effectiveness of our funding from the Australian Government
work to raise awareness and increase and more than $23 million in loan capital
access, particularly in communities from NAB.
with high need.
The ‘Strengthening NILS’ strategy was
developed using this data to ensure
greater equity and reach, to improve
and share systems and infrastructure
and to encourage collaboration
across the network. The strategy
outlines changes to NILS which will
be implemented in 2017 – 18.
12 Good Shepherd Microfinance> Tracy Curless, Nicholas and their family.
A washing machine makes a world
of difference for Tracy and Nicholas
Can a new washing machine Tracy about NILS, she knew she had As for Kahlee, seeing first-hand
transform a family’s life? Absolutely, found a positive way forward.
if you ask busy working mother-of- the difference NILS can make
“Once we had all the documentation to her clients’ lives makes her job
five Tracy Curless. With two adults,
for Nicholas’ case and had a phone
three teenagers and twin eight-
interview with Tracy, it was presented
incredibly rewarding.
and-a-half month old boys under
to our loans assessment committee,
their regional Queensland roof, the
who approved a no interest loan “It’s such an amazing feeling to be
household washing basket can feel
application to buy a new washing able to tell someone that they have
like a never-ending story.
machine,” says Kahlee, who works been approved for a NILS loan. There
“It gets more complicated I suppose at the Logan East Community have been multiple times that I’ve
when you add the fact my 17-year-old Neighbourhood Association (LECNA). teared up because I know how much
son Nicholas was born with physical an item means to somebody.”
“Tracy was then able to buy a
and intellectual disabilities and is
second large washing machine, Once the washing machine loan is
fairly incontinent,” Tracy says. “We
without an agitator, so there’s more repaid, the family hopes to use NILS
were trying to put through three to
room for bedding. It’s making life to finance the purchase of an air
four loads of washing a day. Nick’s
so much easier for both the family conditioner for Nick’s bedroom to
bedding needs to take priority
and Nick’s carers who provide beat the Queensland summer heat.
because we need to get them dry
much-needed assistance. Good
and they take up so much room. The
Shepherd Microfinance also has a
washing problem was compounding
deal with The Good Guys, so Tracy
because my husband and I both work,
received a commercial discount and
so it has been very challenging for
free delivery, meaning the washing
our family.”
machine was bought at the lowest
A former bank manager, Tracy runs possible price.” LECNA
a tight ship when it comes to the Logan, QLD
According to Tracy, Nick’s NILS loan
family budget and is extremely
has lifted a lot of pressure. “You could
careful with Nick’s small disability
spend all day doing washing alone, so
pension. When NILS and StepUP
it has had a very positive impact on
Coordinator, Kahlee Heslop, told
the whole family.”
Annual Report 2017 13I m p a ct
Moving on
with StepUP
StepUP has been operating since 2004, offering low interest loans up
to $3,000 to people on low incomes. StepUP is an initiative of Good
Shepherd Microfinance and NAB, with support from the Department
of Social Services (DSS). It operates in partnership with 22 community
partners in 32 locations across Australia.
In 2016 – 2017, there were 2,319 StepUP loans approved, valued at $6.7 million,
following more than 4,400 financial conversations. The majority of
loans were used for vehicle repairs or to buy second-hand cars enabling
people to get to work, take children to school and actively participate in
society. The percentage of loans used for car repairs or to buy second
hand cars was 78 per cent this year.
The majority of StepUP loan clients are women, at 59 per cent, and
most clients were receiving Newstart allowance, Disability Support
Pension, Single Parenting Payment or the Aged Pension.
4,400
financial
conversations
$6.7
million
2,319 this year in
StepUP Loans
StepUP Loans
14 Good Shepherd Microfinance> Due to privacy considerations, actual client is not pictured.
Shannon gets back on the road
with a StepUP loan
Shannon has had more than his fair “A friend mentioned a local
share of hardship in his life. He grew neighbourhood centre in Bathurst,
up in a violent home, and at the age so l went there and found out about
of five, went into foster care, moving the StepUP loan program, which the
through several homes before being Josephite Foundation run.”
sent to a boys’ home at the age of
Recovery from the accident has been
Josephite Foundation eleven. Fortunately, one of his original
slow and painful for Shannon, but
Bathurst, NSW foster families took him in when he
the loan has really given him the lift
was 12, giving him some much-needed
he needed.
stability and care.
“It’s an absolute blessing — l don’t
Still, as an adult, he has battled his
know what l would have done without
past and life has not been easy.
it. This is the first step for me in
Now trying to turn his life around, he getting back to work and on the road.”
had a serious accident several months
For Shannon, the loan will also give
ago when he severed his leg with an
him a credit rating, which means it will
angle grinder.
be easier in the future to access credit
“I work as a truck driver and have and other financial products.
also done painting, maintenance
“This has picked my spirits up a lot
and scaffolding work. But since the
and it’s come at the right time. I’ll be
accident, l haven’t been able to work.”
telling others about StepUP, as I think
it’s important that people know there
“I needed a loan to get my car is help like this available.”
repaired to get it back on the road, “People don’t want handouts, they just
so l could get back to work.” want a little bit of help and guidance,
so they can help themselves.”
“This loan means l can help myself
and I can be independent.”
Annual Report 2017 15Reach
Bringing
fair finance
to the high street
Good Money stores provide a retail This year, the teams at Good Money
store experience dedicated to conducted 8,653 financial conversations.
financial services for people on low
The stores wrote a total of 1,485 NILS
incomes. The stores are a partnership
loans, valued at $1.4 million, and 448
with NAB and State Governments
StepUP loans, valued at $1.3 million.
in Victoria, South Australia and
Queensland that offer, along with The gender breakdown of clients
products like NILS and StepUP, was 57 per cent female and
referrals to other services such as 43 per cent male.
financial counseling and affordable
contents and car insurance through
Essentials by AAI.
In 2016 – 17, Good Money opened its
first stores in Queensland, providing
people living in Cairns and on the
Gold Coast with access to safe and
affordable financial services. A store
was also opened in Morwell in Victoria.
8,653
Financial
Conversations
57% NILS loans valued
New stores opened in
of clients
were female $1.412M
Gold Coast StepUP loans valued
Cairns AND $1.315M
MORWELL
16 Good Shepherd Microfinance“Education is as
important as the
loans themselves —
we make a difference
in peoples’ lives.”
> Ruth Morris, Customer Service Advisor, Good Money Salisbury.
Following your heart
in your work
Good Money Salisbury opened in “I thought it would be a good Good Money Salisbury has enabled
South Australia in 2015 and since many people to move ahead and
opening, has helped almost 5,000 change, but l didn’t realise how improve their economic wellbeing,
people with loans and enquiries. satisfying it would be; it’s a which gives people like Ruth great
Ruth started working at Good Money
wonderful job and feeling.” job satisfaction and pride in the
work they do.
Salisbury in December 2015, not long
after it opened. She was previously Much of Ruth’s day is spent answering “Even if we can’t help them with a
with the Bank of South Australia, phone and email enquiries, as well loan, there’s often something we
so she was familiar with loan as seeing people who visit the store. can do to assist. It’s very rare that
applications, but not with the NILS People also book interviews to go someone would walk out of the
or StepUP low interest loan program. through their loan applications, during store without any information or
which Ruth will do a budget with them. assistance.”
So why Good Money?
“Doing the application with people “Education is as important as the
“I enjoyed working with the bank, but can make it easier for them, as they loans themselves — we make a
the idea of being able to help people may not have the computer skills to difference in peoples’ lives.”
was appealing. I loved the Good do this. We do loan applications for
Shepherd Microfinance vision, being both NILS and StepUP.”
about fullness of life for all people, Good Money
and the purpose of enabling economic “We also have a financial counsellor in Salisbury, SA
wellbeing for people on low incomes, the store, so if a client isn’t eligible for
especially women and girls.” a loan, the financial counsellor may be
able to assist them in other ways.”
Annual Report 2017 17Str
ength
Making small loans
go further
with Good2GoNow
Good2GoNow is a partnership between In the past financial year, almost
Good Shepherd Microfinance and 7,000 products were sold through
The Good Guys, providing low prices Good2GoNow, with a total value of
on a range of good quality essential $3.2 million. Good2GoNow saved
household items through a service that clients $787,000 off the ticket price of
is safe, non-exploitative and trusted. products— an average saving of 20 per
cent off the ticket price of their products.
Good2GoNow supports NILS and
StepUP clients to make informed decisions The program has grown 27 per cent in
about purchasing household items, and the past year, providing more and more
aims to improve financial literacy by clients with high quality appliances and
providing simple and relevant information competitive prices. We have also been
about pricing and product features. supporting providers to move to an
Good2GoNow also helps clients save online ordering system, which will provide
on delivery costs, with free delivery on them with up-to-date prices and a faster,
washing machines and fridges to streamlined process for their clients.
most locations, including regional and
remote communities.
7,000
Products sold
> ichard, NILS client,
R
AC Care, SA.
18 Good Shepherd MicrofinanceOffering
Good
Insurance
for people on low incomes
Good Insurance works with industry
to offer insurance policies that are
affordable, appropriate and have
flexible payment options tailored to
We had three opportunities
the needs of people on low incomes. to contribute including:
Good Shepherd Microfinance worked
with Suncorp Group to co-create
‘Essentials by AAI’. Launched in
September 2015, this was Australia’s The Victorian Government discussion paper,
first insurance product designed 1 “Addressing non-insurance and underinsurance
specifically for people on low incomes.
This innovative product offers car and
for emergencies in Victoria Government”
contents insurance on the same policy,
and features flexible payment options
and the ability to pay through the
Centrepay system. The Australian Senate Standing Committee on
2
Essentials by AAI is very effective Economics, “Inquiry into General Insurance”
in addressing the barriers faced by
people who experience financial
exclusion and since its launch, it has
won six industry awards. The Australian Government Proposal Paper,
There are around 1,000 clients 3 “Design and Distribution Obligations and
who have taken out policies with
Essentials by AAI, with approximately
Product Intervention Power”
80 per cent being for motor cover.
Fortnightly payments are favoured by
about 70 per cent of clients, and a third
pay their premiums through Centrepay.
In 2016 – 17, Good Shepherd
Microfinance also provided input to
government with respect to insurance
supported
in the Australian community. by
Annual Report 2017 19I m p a ct
innovating
microenterprise
through LaunchME
In May 2017, Good Shepherd The iterative design process will
Microfinance launched its innovative continue throughout 2017, with the
new microenterprise development objective of creating a scalable
program, LaunchME, in pilot mode. program suitable for launching
anywhere in Australia. Its core
Designed to support the small business
participant support services are:
aspirations of eligible people in South
Australia, LaunchME was created ZZ One to one coaching from a
through a living lab process of human Good Shepherd Microfinance
centred design, where the people who business coach;
the program was intended to support
were directly engaged in the process ZZ One to one mentoring from
of designing the program. Through members of the business
a series of workshops we asked community who wish to
participants three questions: volunteer their time;
What would help you achieve your ZZ Support for establishing and
business goals? maintaining business networks;
What are the highest priority needs? ZZ Support for suitable skills training
What would a suitable solution and development;
look like?
ZZ Support for establishing a business
road map and executing on a
business plan; and
ZZ Where suitable, access to a
No Interest Loan of up to $5,000
to kick start a small business.
“My mentor Ricky has been very helpful in
future-proofing my business — preparing me
to set up things now to be ready for future
growth. I like how he uses his business to show
me how to do something, rather than just telling
me what I should do.”
Daniel Mackay
Founder of Rabid Shetland Designs
LaunchME is available
in South Australia
20 Good Shepherd Microfinancegetting
money ready
for disasters
Good Shepherd Microfinance The Money Ready Toolkit is the only
partnered with the Queensland comprehensive reference guide of
Government’s Department of its type, featuring a multitude of
Communities, Child Safety and community and government financial
Disability Services to develop a support programs that foster financial
simple how-to handbook — resilience and provide much-needed Grab yo
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it was designed to help vulnerable outreach groups, as well as into
Queenslanders have a greater every GP waiting room, thanks to
understanding of the impacts of the support of the peak group for
disasters including the financial doctors, AMA Queensland.
consequences, the assistance that is
The Money Ready Toolkit was
available at the time of a disaster, and
awarded by the Queensland
how best to prepare for and recover
Government for its contribution to
from a disaster.
disaster relief and resilience, as part
Before the creation of the Money of the Get Ready Queensland
Ready Toolkit, this information was Resilient Australia Awards. It is
fragmented, scattered across multiple available for free download from
The Money Ready Toolkit
websites and resources, making it Queensland Government, Good
was developed for
almost impossible to find and adding Shepherd Microfinance, local
Queensland.
to the physical and psychological council, community services and
challenges facing people involved RACQ websites.
with a destructive weather event.
Supporting positive
savings behaviours
The AddsUP matched savings plan was developed by
Good Shepherd Microfinance and NAB and is offered to
people who have successfully repaid a NILS or StepUP
loan. Savings of $500, which can be used for any purpose,
are matched dollar for dollar by NAB to continue positive
2,879 financial behaviours.
In 2016 – 17, around 1,000 people opened an AddsUP savings
account, and almost 600 had their $500 savings matched
savings matched by NAB. The total number of people who’ve had their $500
savings matched since the program began in 2009 is 2,879.
During the year, Good Shepherd Microfinance and NAB
engaged with clients and providers to discuss ways to
increase the effectiveness, impact and scale of the program.
This work has led to a redesign of the program and a
planned relaunch in 2018.
Annual Report 2017 21I n fo r m
Working together towards
financial
inclusion
Good Shepherd Microfinance leads What is a Financial Inclusion
the innovative Financial Inclusion
Action Plan?
Action Plan (FIAP) Program on behalf
of the Australian Government in A FIAP is an agreed strategy of
collaboration with EY and the Centre practical actions that an organisation
for Social Impact. This program is a will undertake to improve financial
world-first collaboration, bringing inclusion in Australia. With guidance
together key actors from across from Good Shepherd Microfinance,
private, public, and social sectors individual organisations develop
to implement Action Plans that will their FIAP with actions designed
realise greater financial inclusion and to strengthen financial resilience
resilience through collective impact. for large numbers of people.
These commitments are reviewed and
The purpose of the program is to
outcomes are evaluated independently.
realise inclusive growth for individuals,
families and communities in Australia: FIAP Trailblazers explore key barriers
and risks of financial inclusion and
ZZ By reducing inequalities and
resilience, including low incomes;
increasing financial inclusion
unemployment and underemployment;
and financial resilience.
low education, skills and capability;
ZZ Through collective actions of lack of access to resources (physical
organisations across industry, and digital); life-stage and life-event
government, academia and the triggers, as well as a lack of
community sector. understanding of vulnerability.
The 12 organisations that launched
their FIAPs in 2016 were joined by
a further 18 organisations in early
2017, who are now on-track to launch
Foundation FIAPs in March 2018.
Timeline
Foundation Ideas into Action Impact & Process
FIAPs Evaluation
FIAP Economic
Try, Test Quality Assurance
Modelling & Learn Program Governance
November 2016 12 Months Period November 2017
22 Good Shepherd MicrofinanceTrailblazer organisations
Examples of Actions
Anglicare SA
AGL
$900,000 committed by the
ANZ
Commonwealth Bank of Australia for
Ashurst domestic violence training for financial
Australian Ethical Investment counsellors and financial counselling
Australian Unity scholarships.
Bank Australia
BaptistCare
City West Water Increased financial counselling services for
Commonwealth Bank Indigenous communities by the Indigenous
Consumer Assistance Network (ICAN).
Corrs Chambers Westgarth
EnergyAustralia
Flight Centre
Good Shepherd Microfinance Over $5.5 million per year, allocated by the
HESTA Queensland Government to the Gambling
Help service system, which includes face-
ICAN to-face counselling services, a helpline and
MoneyBrilliant internet-based counselling service; and
NAB residential and outpatient services.
Origin Energy
Queensland Government
Suncorp Yarra Valley Water and Energy Australia are
10ThousandGirl developing a program for cross-organisation
Swinburne University referrals to hardship services.
The Salvation Army
University of New South Wales
VicSuper Westpac and the Salvation Army have
Wannon Water collaborated on the “You’re The Boss”
financial literacy education program and
Westpac
app, which uses a readily understandable
WIRE English format to portray key messages.
Yarra Valley Water
FIAPs move into Beyond 2020 Agenda
12 month 3 year 5 year 10 year
FIAP Impact FIAP Impact FIAP Impact FIAP Impact
Evaluation Evaluation Evaluation Evaluation
Report Report Report Report
April 2018 April 2020 April 2022 April 2027
Annual Report 2017 23Str
ength I m p a ct
> eft to right: Shelley Cable, 100 Days of Deadly Mob, Amanda Young,
L
CEO, First Nations Foundation, and Tanya Hosch, AFL.
Building women’s
financial
resilience
The Resilient Women summit was One of the highlights was the last
held on the International Day for panel called ‘The Money Story’ which
the Elimination of Violence Against discussed Indigenous women and
Women in 2016. The event was finance and perceptions of Aboriginal
Australia’s first leadership summit people in the media. The panel
focused on building financial included Amanda Young, First Nations
resilience for women. Foundation, Tanya Hosch, AFL, and
Shelley Cable, 100 Days of Deadly
More than 130 guests and speakers
Mob and each speaker referred to
across all sectors joined us at EY in
her own experience as an Indigenous
Sydney to hear the stories, challenges
woman learning about navigating the
and successes of real women and to
world of finance.
learn about ways that organisations
can improve financial products We would like to extend a special
and services. thank you to our Master of
Ceremonies, Jane Caro, our sponsors
The summit discussed the four
Commonwealth Bank Australia,
resources that enable financial
Financy, HESTA, Women’s Agenda
resilience: networks, products,
and EY and to all of our wonderful
income and capability, which allowed
speakers who made this a day not to
participants to see the complexity
be missed.
of the issue as well as offering
opportunities to explore ways they
could lead change.
24 Good Shepherd MicrofinanceStr
ength
“Having spent some time
working with people at the
centre though, l now want
to do a diploma in financial
counselling.”
> Dalal El-Haouli, volunteer,
Uniting Wesley Footscray Outreach.
Our big-hearted
volunteers
Good Shepherd Microfinance has “I was doing my placement at for them and I treat everyone as equal.
many amazing volunteers that play I’ve never had a client leave dissatisfied.”
an important role in the national Footscray, which meant completing
a total amount of 400 hours of She recommends others give it a
microfinance network. Last year,
try too.
we were fortunate to have more placement. Of this, 200 hours was
than 1,300 people donate their time completed for support work and “I’ve told other people to volunteer with
and skills to assist us in their local NILS — they think finance when l mention
communities. another 200 hours towards the NILS, but l say that’s not all it’s about; try
NILS program. I didn’t know much it and you’ll fall in love with it.”
One of our big-hearted volunteers
is Dalal El-Haouli. Dalal started
about NILS at the time.” Dalal’s dedication and passion for what
volunteering with Uniting Wesley she does was rewarded this year when
Footscray Outreach in early 2017. “Having spent some time working she was announced as the winner of
As part of her studies in community with people at the centre though, l the Victorian Volunteer of the Year
services, she was placed at the now want to do a diploma in financial Award at the Microfinance Conference.
Footscray centre, which is part counselling.”
of Wesley Mission and provides
Dalal finds working as a volunteer
emergency help for disadvantaged
extremely rewarding.
and vulnerable people.
“What l love to see most is the hope
She didn’t know much about
and then the feeling of empowerment Uniting Wesley
microfinance or NILS, but her
that my clients have after they receive Footscray Outreach
experience as a volunteer sparked
their loan. But it’s not just about the Footscray, VIC
a new interest.
loan — I give them information, I’m there
Annual Report 2017 25Str
ength
> ne of the Good Shepherd Microfinance teams that
O
attended Cultural Awareness Training.
Living our
Values
One of the values of Good Shepherd SportsReady. The team have an In the last financial year, 52
Microfinance is reconciliation, and it intimate knowledge of culture and Good Shepherd Microfinance
is a value that the organisation has extensive experience working in employees completed the course and
always been committed to. Aboriginal partnership with Aboriginal and Torres all new team members complete the
and Torres Strait Islander people Strait Islander people in the workplace course within the first few months of
represent 24 per cent of NILS clients and local communities. commencing their new role.
overall, but in some areas, this number
The program aims for participants to: Good Shepherd Microfinance is
increases to over 80 per cent.
also partner to the Good Shepherd
ZZ Develop a greater appreciation
As part of our commitment to Network Reconciliation Action Plan
and understanding of Australian
reconciliation, employees at which commits us to reconciliation and
Aboriginal and Torres Strait
Good Shepherd Microfinance take sets out a plan to work respectfully
Islander people, their history
part in Cultural Awareness Training. and meaningfully with Aboriginal and
and cultural diversity.
This training is an ongoing part Torres Strait Islander people.
of Good Shepherd Microfinance’s ZZ Receive practical tools enabling In 2017 – 18, this Reconciliation Action
Reconciliation Action Plan and our them to confidently engage and Plan will be refreshed to ensure we
commitment for every team member build effective working relationships can continue to be successful in
to deepen their understanding of their with Aboriginal and Torres Strait improving financial inclusion and
own role in improving relationships Islander people and communities. resilience for Aboriginal and Torres
with Aboriginal people. This enables
Strait Island people.
our team to develop trust and more ZZ Be empowered to deliver
effectively work with Aboriginal clients. more responsive and culturally
The program is delivered by appropriate services for Aboriginal
an experienced Aboriginal and and Torres Strait Islander people
Torres Strait Islander team at AFL and communities.
26 Good Shepherd MicrofinanceStr
ength
Partners
with big hearts
NAB and Good Shepherd ZZ Work continued on a new online All of the activity strengthens our
Microfinance have partnered for product to be piloted in Victoria relationship with NAB and helps
14 years to provide more than and Tasmania with the view to bring us closer to realising our joint
$212 million in no and low interest launching nationally in 2017 – 18. goal to reach one million people with
loans to support more than half a microfinance by 2018.
million people on low incomes. ZZ A review of AddsUP is underway
with a new product to be launch NAB also continues to work to
It has been a big year for the in 2018 that will help more people understand the issues of financial
partnership with NAB committing to living on low incomes save. inclusion and resilience outside
back Good Shepherd Microfinance to their partnership with us. NAB
reach 100,000 loans annually within ZZ NAB supported the launch of has a long history of supporting
two years. Last year, 25,019 people Good Shepherd Microfinance’s financial resilience research with the
were able to access the No Interest microenterprise pilot in South Centre for Social Impact. Last year,
Loans Scheme (NILS). Australia, LaunchME, by providing they published their first Financial
loan capital for the project. Resilience in Australia report, with the
With a focus on reaching more
second report released in September
people, activity is well and truly ZZ NAB was one of 12 trailblazer 2017. The report demonstrated
underway to achieve this new target. organisations to develop a Financial the need to do more to support
ZZ Three new Good Money community Inclusion Action Plan. people who have limited access to
finance stores opened, bringing the mainstream finance.
national total to seven.
Findings from the Financial
Resilience in Australia report*
Financial stress is
2.4
million
on the increase
31%
feel financially
Australian Adults secure
feel severely or
highly stressed 1 in 8 feel financially
50%
vulnerable
1 in 7 of Australians
Australians have
no savings AT ALL Savings are have savings equal to
3 or more months pay
shrinking
* Marjolin, A., Muir, K., Ramia, I., and Powell, A. (2017), "Why is financial stress increasing?", Financial Resilience in Australia 2016 — Part 1,
Centre for Social Impact (CSI) at UNSW Sydney, for National Australia Bank.
Annual Report 2017 27Our
Board
We are governed by a Board of Directors that serve on a voluntary basis.
The Board is responsible for:
ZZ Setting the strategic direction and policies of Good Shepherd Microfinance
ZZ Monitoring overall organisational performance
ZZ Approving and monitoring the annual budget and setting risk appetite and controls
ZZ Ensuring effective engagement with stakeholders
ZZ Ensuring the organisation meets all regulatory and statutory requirements.
The sub-committees of the Board include: Finance and Audit Committee, People and
Culture Committee and Major Project Implementation Committee.
Dr Christine Nixon Professor
APM John Langmore
Chair Deputy Chair
Dr Christine Nixon is Deputy Chancellor, Monash Professor John Langmore is a political economist and
University and Chair of Monash College Pty Ltd author in the School of Social and Political Sciences
and on the council of the Royal Australasian at the University of Melbourne. He previously worked
College of General Practitioners. She has a in PNG as a public servant and university lecturer.
strong history of fighting for justice and equality, Between 1976 and 1984, he was an economic advisor
especially assisting women, multicultural and to the Australian Labor Party and he was elected to
minority groups . Dr Nixon’s police career the House of Representatives in 1984. He was later
spans 38 years, from Assistant Commissioner re-elected four times for the ACT seat of Fraser. He
of the New South Wales Police Force to Chief was Divisional Director at the United Nations and
Commissioner of Victoria Police in 2001. In 2009, then Representative of the International Labour
she became Chair of the Victorian Bushfire Organization to the United Nations.
Reconstruction and Recovery Authority.
Ian Clyde Chris Gallaher
Director Director
Ian Clyde is a lawyer who has worked in Chris Gallaher is a director of the GSNZ Trust and
government, legal, policy and regulatory roles. GSNZ Limited and a member of the Good Shepherd
He has been a Chair of the (Victorian) Business Australia New Zealand Board. He is also the Chairman
Licensing Authority, chair of the national body of Pacific Edge Limited, a NZ listed company in the
formerly responsible for policy and oversight of medical technology sector. He recently retired as
consumer credit regulation, a senior legal adviser Group Chief Financial Officer with Fulton Hogan Ltd,
to the Government of the United Kingdom, and after eight years in the role. Prior to joining Fulton
counsel assisting the Australian Human Rights Hogan, Chris held CEO and CFO roles in listed and
Commission’s Stolen Children Inquiry. private companies in Australia and New Zealand.
28 Good Shepherd MicrofinanceShelley Jones Michelle Redfern
Director Director
Shelley Jones is a Board Director and Michelle Redfern is the founder of two
management consultant for both the ‘For Profit’ businesses focused on gender diversity and
and ‘Not-For-Profit’ sectors. She has extensive advancing women, and a Non-Executive
experience working in HR leadership in a range Director for Williamstown VFL Football Club.
of industries in Asia and the Pacific. Her work Prior to establishing her advisory firm, she
also extends to international development, held executive leadership roles in banking,
with a focus on assisting countries recovering telecommunications, Business Process
from natural disaster and conflict in order to Outsourcing (BPO) and Third Party Logistics
strengthen governance, facilitate early recovery (3PL) industries for blue chip companies such
processes and prepare the frameworks for as NAB, Telstra, Serco and Aegis. She is also a
longer-term development. panel judge for the Telstra Business Women’s
Awards and for the Telstra Business Awards.
Daniel Rudd
Director
Daniel Rudd is a Director at PwC and has 18
years’ experience delivering risk consulting,
internal audit and external audit services
to clients in the private and public sectors.
He has a passion for working with clients to
identify practical commercial solutions to
better manage strategic, financial, operational
and project risk. He has worked with a range
of clients from large multi- national consumer
products companies through to smaller state
government agencies.
Annual Report 2017 29Financials
This year was the second year of a The national NILS and StepUP During this year we continued to
five year funding commitment for networks received over $5.3 million in invest in developing a new online
NILS and StepUP announced in May grants during the year. NILS is offered loans program. We built new
2015 by the then Minister for Social at more locations than ever with technology assets and recruited a
Services, the Hon Scott Morrison nearly 700 physical sites providing team to manage this program and
MP. Together with our network of access for clients. A tender process support customers, in preparation for
providers, we reached a record was conducted to allocate future NILS a launch later in 2017.
number of NILS loans. funding, which will be distributed in
We continue to diversify our
line with demand across Australia.
income sources through corporate
Operating grants rose in 2017, partnerships, philanthropic trusts and
including Department of Social new government funding.
Services funding to support the
development of NILS technology,
our new LaunchME microenterprise
program in South Australia and new
Good Money stores in Victoria and
Queensland.
Headline indicators
2017 2016 2015 2014 2013
COMMUNITY
Active NILS programs (#) 159 178 239 217 246
LED
Active StepUP programs (#) 22 24 24 39 38
Locations (all programs) 694 659 671 669 634
NILS loans (#new) 25,019 22,396 22,191 24,378 22,349
PROGRAM DETAILS
NILS loan ($m) 22 20 20 20 21
StepUP loans (#new) 2,319 1,994 2,203 2,473 2,110
StepUP loan ($m) 6.7 6.5 7.5 6.7 6.0
Good Money client visits (#) 8,653 8,214 5,632 6,270 3,681
Research/evaluation reports 5 5 5 5 5
INFORM
Policy papers/submissions 8 8 10 4 2
External events 9 10 15 9 3
Revenue ($ m) 15.5 14.1 14.5 20.4 10.6
Costs ($ m) 15.2 14.0 13.9 19.7 10.2
FINANCES
Surplus/deficit ($ m) 0.3 0.1 0.6 0.8 0.4
Assets ($ m) 9.8 5.0 4.6 18.7 30.4
Equity ($ m) 2.2 1.9 1.8 1.2 0.5
Headcount (#) 83 69 60 52 49
PEOPLE
Full time equivalent total 81 64 56 42 36
Part-time people (#) 10 10 10 24 20
30 Good Shepherd MicrofinanceIncome statement
2017 2016 2015 2014 2013
$’ 000 $’ 000 $’ 000 $’ 000 $’ 000
Operating grants 12,964 11,014 11,396 17,061 9,184
Corporate sponsors 2,234 2,570 2,258 1,241 1,168
REVENUE
Interest revenue 52 97 437 1,645 220
Donations 79 16 180 436 1
Other revenue 198 365 208 39 52
TOTAL REVENUE 15,527 14,063 14,479 20,422 10,625
Grants to network 5,339 5,319 5,820 6,664 4,036
Staff and program consultants 6,338 5,628 5,617 5,293 3,933
EXPENDITURES
Program operations, marketing, research and
2,014 1,604 1,398 2,372 1,563
development
Occupancy and general operational expenditures 1,559 1,446 1,037 983 726
TOTAL EXPENDITURES 15,250 13,997 13,872 19,658 10,274
Surplus / (deficit) 277 66 607 764 351
Investment in programs
2017 2016 2015 2014 2013
$’ 000 $’ 000 $’ 000 $’ 000 $’ 000
NILS 7,469 7,316 7,199 6,991 4,930
Remote NILS / REACH funding 171 171 358 766 528
PROGRAM INVESTMENT
StepUP 2,568 2,399 3,005 3,027 2,742
Good Money 3,640 2,534 2,100 1,894 1,530
Energy inclusion - - - 6,956 544
FIAP 463 401 - - -
Other Programs* 940 1,176 1,210 23 -
TOTAL INVESTMENT IN PROGRAMS 15,250 13,997 13,872 19,658 10,274
* Other Programs include Good Insurance, Microenterprise, Financial Literacy Australia, AddsUP, Good2GoNow and other new programs.
Annual Report 2017 31Financials
Statement of financial position
2017 2016 2015 2014 2013
$’ 000 $’ 000 $’ 000 $’ 000 $’ 000
CURRENT ASSETS
Cash and cash equivalents 4,187 1,905 3,604 17,252 29,577
Trade and other receivables 33 95 517 1,015 178
Other assets 191 186 123 107 96
ASSETS ($’000)
Total Current Assets 4,411 2,186 4,244 18,374 29,851
NON-CURRENT ASSETS
Property, plant and equipment 636 757 366 286 537
Intangible asset 4,797 2,017 - - -
Total Non-Current Assets 5,433 2,774 366 286 537
TOTAL ASSETS 9,844 4,960 4,610 18,660 30,388
CURRENT LIABILITIES
Trade and other payables 950 785 689 254 723
Employee benefits 444 367 376 319 291
Other liabilities 2,888 978 1,627 16,742 28,885
LIABILITIES ($’000)
Total Current Liabilities 4,282 2,130 2,692 17,315 29,899
NON-CURRENT LIABILITIES
Borrowings 3,245 821 - - -
Employee benefits 134 102 77 111 20
Total Non-Current Liabilities 3,379 923 77 111 20
TOTAL LIABILITIES 7,661 3,053 2,769 17,426 29,919
NET ASSETS 2,183 1,907 1,841 1,234 469
Equity
Reserves 50 - - - 150
($’000)
EQUITY
Retained earnings 2,133 1,907 1,841 1,234 319
TOTAL EQUITY 2,183 1,907 1,841 1,234 469
32 Good Shepherd MicrofinanceYou can also read
