Social return on investment forecast of the Indigenous Money Mentor program

1. Description of the programme
2. The study
3. What are the outcomes?
4. Key findings
5. What are the costs?
6. Points to consider

• Description of the programme
• The study
• What are the outcomes?
• Key findings
• What are the costs?
• Points to consider
• Full report

Description of the programme

The Indigenous Money Mentor (IMM) network was set up by the National Australia Bank to help promote financial inclusion under its Reconciliation Action Plan, which aims to redress disadvantage in indigenous communities. The IMM network – which comprises financial counsellors with backgrounds in or experience of indigenous population – was established in 2009 in a number of communities with high indigenous populations. The counsellors work independently, working one-to-one with indigenous clients in community settings and undertaking outreach activities to help indigenous people develop financial skills and improve their financial wellbeing. At the time of this study, counsellors were working independently in four locations across Australia providing, where appropriate, financial literacy education, financial wellbeing casework, supported referral services, and access to microfinance (small-scale, affordable) products.

The study

The scope of this study was a programme of Indigenous Money Mentors offering financial inclusion support to indigenous populations in Australia. The study was commissioned by the National Australia Bank, which is responsible for the initiative. The study’s aim was to provide an independent assessment of the potential for the mentors to address gaps in the provision of financial assistance and support (to improve financial capability), and to forecast the social value associated with this. The Social Return on Investment methodology adopted used information from consultations with mentors in three locations and, from these, interviews with 27 stakeholders and survey data from 72 randomly selected clients. Positive evidence for the success of the programme could potentially lead to an extension of the service with Government support.

What are the outcomes?

The social outcomes which were used in the study’s Social Return on Investment methodology were identified as part of the same study through stakeholder engagement and existing best practice evidence. There were 11 outcome measures in total, across five domains:
• Quality of life
• Emotional stability
• Adaptability
• Future security
• Family, kinship and community
The individual outcomes associated with these domains were applied only to those stakeholders for whom they were relevant. The resulting forecast was based on a theory of change developed specially for the study.

Key findings

• Relevant stakeholder groups : Social value was created for eight identifiable client groups (e.g. ‘aged pensioners’, ‘long term unemployed with children’) and families.
• Issues presented by stakeholders: The most diverse range of issues were presented by unemployed clients. The most common reason for visiting an IMM was wanting microcredit or a loan. Budgeting was rarely the reason why clients had sought advice, but materialised as an issue during discussions with the mentor in relation to other financial disadvantage.
• Outcome attribution: Different client groups attributed outcomes to the initiative to differing degrees, with aged pensioners and long-term unemployed attributing the most and single employed clients seeing it as only part of the reason for achieving outcomes.
• Return on Social Investment: Based on adjusted ‘distance travelled’ measures for each client for each outcome, the study forecast a $1.89million positive return in social value from a $448,000 annual investment. Alternatively, $4.20 of social value was created from every dollar invested (range: $3.40 to $5.00). The largest shares in social value created derived from the quality of life and family kinship and community domains. Nearly two-thirds of the return is accounted for by ‘family and disability support pensioners’ and ‘long term unemployed with no children’ and, for those in employment, parents gain more.
• Improving returns: It is possible to increase the return on investment by targeting particular groups (for example to $7.4 among the long term unemployed without children), improving operational efficiency (to $4.7) and targeting the most sensitive outcomes to changes in the model, for example, family relationships.
• Factors for success: the report identifies a number of factors as being important for the success of the initiative, including the specificity of the programme and the trustworthiness, credibility and cultural awareness of the mentors.

What are the costs?

Annual investment of $448,000

Points to consider

Relevance: While the study has its focus on a particular and distinct population group within Australia, the programme and findings nonetheless have wide relevance to disadvantaged and hard-to-reach groups within any domestic population and offers applicable lessons for engaging with such groups to promote financial inclusion and wellbeing.

Generalisability/ transferability: While the findings are based on a survey of randomly selected clients and includes extensive sensitivity analysis, the sample was only 72. This may mean that different client types are not all well represented in this study.

Applicability: The forecasting was based on a collaboratively developed theory of change (financial capability), which lends validity to it. The authors highlight the value of disaggregating the stakeholder/client groups and identify that targeting some groups such as the long term unemployed with no children will yield substantially higher returns on investment.

Full report

Social return on investment forecast of the Indigenous Money Mentor program - full report