Fostering self-determination: The role of financial services in First Nations economic empowerment

Financial services organisations have a unique opportunity and responsibility to foster First Nations self-determination. This is not only a moral imperative rooted in historical justice, but also a strategic imperative that aligns with long-term business success and sector leadership.

In recent years, the financial services sector has increasingly recognised the importance of engaging with First Nations communities in meaningful and impactful ways. This shift reflects a growing awareness of the historical and systemic challenges faced by First Nations peoples, as well as the opportunities for financial institutions to contribute to economic empowerment. Financial services are not limited to financial literacy or education. They encompass the ability to access funds, purchase goods and services, secure housing and utilities, protect assets through insurance, and build wealth through savings, investment, and superannuation. These are the building blocks of economic participation and community engagement.

This article explores the strategies, challenges, and opportunities at this critical intersection, offering insights for organisations seeking to make a difference. It argues that financial services providers must move beyond surface-level initiatives and embrace a comprehensive, culturally responsive approach that empowers First Nations communities to define and pursue their own economic futures.

Any meaningful discussion in this space must start by acknowledging the enduring impacts of colonisation on First Nations peoples. These include systemic barriers to economic participation, intergenerational trauma, and a lack of trust in institutions that have historically marginalised First Nations communities. 

Colonisation disrupted traditional economic systems and replaced them with structures that often excluded First Nations peoples. This exclusion has had a cascading effect, leaving many families and communities without the foundational financial education that others take for granted. This is particularly relevant since most financial education is not delivered through the education system, but through our soft networks such as family, community and colleagues.

The consequences of this exclusion are stark:

• Income disparity. First Nations adults earn $316 less per week than non-Indigenous Australians.
• Socioeconomic disadvantage. Only 2 per cent of First Nations people live in the most advantaged areas, compared to 11 per cent of non-Indigenous Australians.
• Financial vulnerability. 53 per cent of First Nations people could not access $2,000 in an emergency, compared to 20 per cent of non-Indigenous Australians.
• Historical injustice. Queensland alone owes an estimated $500 million in stolen wages, with the inflation-adjusted value exceeding $1.8 billion

This lack of financial education manifests in various ways. For some, it means limited understanding of modern banking systems or credit structures. For others, it’s a mistrust of financial institutions, rooted in a history of exploitation and neglect. What’s missing is not just basic financial literacy but education that is culturally relevant and tailored to the unique challenges faced by First Nations Australians. Without this, the gap in financial empowerment will persist. 

The history of financial services in a First Nations context is deeply intertwined with the broader impacts of colonisation. For many First Nations Australians, the legacy of dispossession, systemic exclusion, and cultural dislocation has profoundly shaped financial outcomes. These historical injustices have not only limited access to wealth-building opportunities but have also disrupted the transmission of financial knowledge across generations.

Today, the gap in financial literacy and access to appropriate services remains a pressing issue, which demands both understanding and action. For financial services providers, this context underscores the need for thoughtful, culturally sensitive approaches that go beyond surface-level initiatives.

First and foremost, there must be a deep understanding of the historical and cultural challenges that have shaped the current landscape. Services need to be cognisant of these challenges. This means recognising that financial education cannot be a one-size-fits-all solution.

Secondly, financial services must go beyond awareness to offer products and services that are specifically designed to meet the needs of First Nations clients. These offerings should not only address immediate financial challenges but also empower individuals and communities to build long-term financial resilience. The three critical components for creating parity include: understanding the challenges, creating culturally sensitive services, and developing targeted products for those who need additional support.

Some financial services organisations have begun to take steps to address these issues, but progress remains uneven. Benchmarking efforts provide a useful lens for evaluating what’s working and where gaps remain. For example, certain financial institutions have introduced dedicated programs aimed at improving financial literacy among First Nations communities. Others have partnered with First Nations organisations to co-design products that align with cultural values and priorities.

However, these initiatives often lack the scale or depth needed to create systemic change if enacted in isolation. Embedding cultural competence and inclusivity into their core operations, rather than providing piecemeal solutions is the key to enabling systemic change. Assessing your own organisation’s maturity can support your organisation to identify opportunities.

To ensure that financial products and services genuinely empower First Nations clients, organisations must adopt a collaborative and iterative approach. This begins with listening: engaging directly with First Nations communities to understand their needs, aspirations, and pain points. More than merely being best practice, co-designing solutions with these communities is a necessity.

Products must also be designed with accessibility in mind. This includes using the right language for the audience, offering tailored financial products, and ensuring that services are available to those who need them. It’s not enough to offer a product. There needs to be education and guidance to help people use it effectively.

For financial services organisations, engaging meaningfully with First Nations communities is not just a moral obligation, it is a strategic opportunity. As the sector evolves, those who embed First Nations engagement into their core strategy will be better positioned to lead, differentiate, and grow.

One standout example of this is the thoughtful enactment of Reconciliation Action Plans (RAPs). When developed and implemented with genuine intent, RAPs signal a commitment to self-determination and long-term outcomes for First Nations communities. But to be truly impactful, these initiatives must go beyond symbolic gestures. They must align products and services with the principles of self-determination, both as a comprehensive strategy and as a market differentiator.

Financial services providers should aim to be sector leaders in First Nations engagement. This means treating reconciliation not only as a social responsibility but as a strategic lever for brand strength, customer loyalty, and competitive advantage. By taking a distinctive approach, organisations can simultaneously benefit First Nations communities and enhance their reputation and market position.

There are several concrete business drivers that make this imperative clear:

• Market differentiation. Culturally responsive services help organisations stand out in a crowded marketplace.
• Customer base expansion. First Nations communities represent underserved markets with unique needs and growth potential.
• Regulatory alignment. Meaningful engagement supports compliance with RAPs and broader ESG commitments.
• Talent and reputation. Demonstrating inclusion strengthens employer brand and builds trust with stakeholders.
• Cross-sector relevance. Financial services underpin everyday life – from banking and insurance to superannuation and utilities – making inclusion foundational to economic participation.

Aligning First Nations engagement strategies with broader organisational goals ensures that social impact and business success reinforce one another. This is not about ticking boxes; it’s about embedding inclusion into the DNA of the organisation and recognising that empowering First Nations communities is integral to building a resilient, future-focused financial services sector.

To move from intent to impact, financial services organisations must adopt a structured, iterative approach:

1. Build foundational understanding. The journey begins with building a deep understanding of the historical and cultural context that shapes First Nations experiences with financial services. This foundational step is essential to avoid assumptions and missteps. Organisations should invest in cultural awareness and anti-racism training for staff, engage First Nations educators to guide internal learning, and reflect on their own histories and biases. This groundwork sets the tone for respectful engagement and ensures that all future actions are informed and intentional.
2. Engage in genuine consultation. Before designing solutions, financial services providers must listen. Genuine consultation ensures that initiatives are shaped by lived experience rather than assumptions. This involves holding yarning circles and community forums, partnering with First Nations organisations to facilitate engagement, and fairly compensating community members for their time and expertise. Consultation builds trust and lays the groundwork for meaningful collaboration.
3. Co-design solutions. Once trust is established, organisations can begin shaping solutions with First Nations communities through co-design. This approach empowers communities and ensures that products and services are relevant and respectful. It involves participatory design methods, inclusion of First Nations voices in product teams, and feedback loops that allow for continuous improvement.
4. Develop culturally-responsive services. Services must be accessible and resonate with First Nations clients. This means adapting delivery models to reflect cultural competence and trauma-informed care. Offering services in First Nations languages, locating them in community spaces, and using trusted intermediaries are all ways to ensure usability and relevance. Responsive service delivery builds on co-design and ensures that solutions are not only well-intentioned but also effective.
5. Create targeted financial products. Tailored financial products are critical to addressing specific challenges and supporting resilience. These might include kinship-based financial models, flexible repayment options, or bundled offerings that combine financial education with savings or credit tools. Products should reflect community values and be designed to empower individuals and families to build long-term financial security.
6. Benchmark and assess maturity. To ensure progress, organisations must assess their maturity in First Nations engagement. Benchmarking helps identify gaps, track improvements, and share best practices across the sector. This can involve using maturity assessment tools, comparing initiatives with peers, and publishing transparent progress reports. Strategic refinement depends on honest evaluation and a willingness to learn.
7. Embed inclusion into core strategy. Systemic change requires that inclusion be embedded into the organisation’s DNA. This means setting measurable goals and KPIs, allocating dedicated resources, and ensuring leadership accountability. Governance structures should include First Nations representation to guide decision-making and ensure that inclusion is not peripheral but central to the organisation’s mission.
8. Iterate and sustain. Finally, long-term impact depends on continuous learning and adaptation. Organisations must regularly revisit community feedback, celebrate successes, and acknowledge missteps. Sustaining partnerships with First Nations organisations ensures that engagement remains dynamic and responsive. The journey is ongoing, and commitment to iteration is key to lasting change.

Organisations often reach out to Nous with one of two objectives: either to take their first steps in engaging with First Nations communities or to find ways to stand out in an increasingly competitive landscape. This highlights the varying levels of maturity within the sector when it comes to First Nations engagement. While some organisations are just beginning their journey, others are looking to deepen their impact and carve out a distinctive position in the market.

For those just starting out, the focus should be on building trust and understanding the unique needs of First Nations communities. For more established players, the challenge lies in pushing the boundaries of what’s possible and setting new standards for the industry. For any organisation looking to make a difference, however, the path forward remains the same, beginning with a commitment to listening, learning, and acting with purpose.

Get in touch to discuss how your organisation can foster First Nations self-determination into its practices and processes.

Connect with Joshua McKinnon on LinkedIn.

Written with input from Rodney Williams and Carlos Blanco.