Credit cards out of reach for 3 Million Aussies

Nearly 3 million Adult Australians do not have access to a cluster of fundamental financial services, including credit cards, bank accounts & car insurance

Australia's banks need to take a good hard look at themselves

    Got a $3,000 emergency? Save yourself the embarrassment of a decline of a credit card and don't ask your bank! Your family and friends are more likely to respond to your emergency than a bank.

Pay day lenders fill the gap

Payday lenders, who will charge much higher rates will fill the gap. And a little known source for smaller amounts can be Centre-link, if you are a client.
How can you operate without a bank account today? Move to Woollongong or the ACT!

Parts of NSW have the highest number of people without even a basic bank account, let alone a credit card.
But the Wollongong region tops the nation, with 7 per cent of adults without a bank account.
The number of adults in Sydney's southern suburbs and the ACT without a bank account is running at 5 per cent, with the National Australian average of 3 per cent of adults.

And that excludes Aborigines and Torres Strait Islanders. If you add those, then up to 43 per cent operating outside the mainstream banking system.
Why do people have problems getting credit cards or insurance?

Main issues in credit exclusion cited were:

1.     The cost of basic financial services remains too high.
1. The average annual combined cost of banking, credit card and either car or home insurance is $1794. 
2. The level of documentation needed to establish an account can often be a hurdle, 
3. Many banks won't lend less than $5000 as a personal loan, instead steering customers to credit cards.

National Australia Bank says Australia's banks need to lift their game

The National Australia Bank were part funders of this survey, and NAB chief executive Cameron Clyne says the banking industry needed to "lift its game" by providing affordable products to more people.

    "The absence of access to mainstream financial services does preclude people from advancing socially and economically,'' Mr Clyne said yesterday.

When the fridge, telly or car breaks down or someone needs to get to a job interview the banking system needs to improve financial inclusion and community spirit.

Access to credit is improving

While efforts to improve access to basic bank accounts & to promote low-cost credit products are being made, more needs to be done.
The Government has recently chipped in with Federal Treasurer Wayne Swan brokering an agreement with the banking industry to provide free ATM transactions for indigenous people in remote communities. That still leave millions left to help.

Source: Mr Mortgage