Research Paper for First Nations Foundation: Australian First Nations Customers’ Experiences with Financial Services: An Analysis of Cultural Safety, Inclusive, and Exploitative Practices by Australian Banking and Credit Institutions

Abstract

This report for the First Nations Foundation, examines the cultural safety, inclusivity, and exploitative practices of Australian financial institutions and their impact on First Nations peoples. It compares traditional banks—Australia’s top eight by home loan value—with non-traditional lenders, including smaller institutions and Buy Now, Pay Later (BNPL) services. Traditional banks have implemented external cultural awareness training and First Nations-specific customer service lines, particularly for remote communities. Smaller banks lack these services, likely due to lower First Nations engagement. Credit access also differs significantly. Traditional banks enforce strict eligibility and risk mitigation policies, while non-traditional lenders offer minimal barriers, making them more accessible but often leading to financial harm. BNPL services are similarly high-risk for First Nations users. The report also notes variations in self-identification policies, with voluntary measures in major banks and mandatory policies in some superannuation funds. While reconciliation efforts—particularly through Reconciliation Action Plans (RAPs)—show progress, further research and policy improvements are needed to close the gap in financial service experiences.