Traditional Credit Union (TCU) is Australia’s only Indigenous-owned financial institution.
TCU serves a unique demographic – Aboriginal and Torres Strait Islander members living and working in remote communities across the Northern Territory. This year, it celebrates 30 years of service.
However, TCU is so much more than a bank – its core mission extends beyond financial services to encompass training and employment opportunities for First Nations people. It also partners with government agencies like Services Australia to deliver essential services in remote areas.
Here, TCU’s CEO Simon Lyons shares how the credit union makes a real impact in the communities it serves, the challenges that come with serving some of Australia’s most remote areas, and why high staff turnover is one of its goals.
How TCU was founded
The TCU was founded in 1994 by Indigenous elders in response to major banks withdrawing from remote and regional communities in Northern Territory.
“They decided that a mutual model would be the right way to go. The elders saw the need for a financial institution that was more than just a bank – one that was deeply embedded in the community and actively worked to empower its members,” Simon explained.
“We are a real for-purpose organisation,” he adds.
Today, TCU operates in 14 locations across the Northern Territory, 12 of which are remote Indigenous communities. With a staff of 90 – 85% of whom are Indigenous – TCU is deeply committed to its mission of providing financial services, employment, training, and financial literacy in remote communities.
A different concept of money
Simon says that it is important to understand that Indigenous communities often have a different relationship with money and ownership than non-Indigenous people.
“The concept of individual accumulation or material possessions may not hold the same significance. Instead, there’s a strong emphasis on sharing and collective wellbeing,” he explains.
This difference in perspective can present challenges when it comes to traditional banking and financial planning. TCU recognises these cultural nuances and adapts its services accordingly.
“That’s why we’re focusing on empowering these communities through financial literacy, digital literacy, and employment and training programs. By bridging this understanding and providing the necessary skills and knowledge, we can help individuals thrive within both their own cultural context and the wider economic system,” he adds.
Providing training and employment opportunities
TCU provides valuable training and experience, often serving as a stepping stone for young First Nations people to gain skills and advance their careers, whether within TCU or in other organisations, including Aboriginal-led organisations, local councils and other government agencies.
“We’re often their first or second job out of school, providing valuable experience and training in finance and banking. It’s common for our people to move on to roles with local councils or other banks in Darwin. However, they often return to TCU later in their careers, bringing with them the new skills and perspectives they’ve gained,” Simon explains.
High staff turnover, while a concern for most financial institutions, is seen as an opportunity at TCU.
“We have fairly high turnover rates, which most banks would be really frustrated with. But for us, it’s about creating employment opportunities, particularly for young people in remote communities,” he adds.
In the last three decades, Simon estimates the credit union has trained and employed about 1,000 people.
Financial and digital literacy
Beyond employment, TCU tackles the critical issue of financial literacy.
“In communities where English is often a second or third language, understanding complex financial concepts can be a significant hurdle. Our staff, with their deep understanding of local languages and cultures, bridge this gap and provide essential guidance to members,” he explains.
In remote areas, poor infrastructure and limited access to smartphones create barriers to accessing online banking services, and TCU is aiming to bridge the digital divide for members.
TCU’s strong in-person and call centre operations play a crucial role in overcoming these challenges, providing personalised support to members who may struggle with online or mobile banking.
Working with Services Australia and Centrelink
Recognising the challenges faced by remote communities, TCU has taken on a variety of roles to support their members. They manage part of the Smart Card program (part of the Cashless Debit Card scheme) for Services Australia, a voluntary program that helps families control their finances. They also run Centrelink and Medicare agencies in various communities, providing essential government services in remote areas.
“We’re trying to broaden the number of services that we can offer on behalf of government, and ultimately, help Indigenous, remote communities,” says Simon.
TCU is exploring partnerships with other agencies, including ASIC, to assist them with initiatives like recovering unclaimed money and superannuation in remote Indigenous communities. TCU along with the Arnhem Land Progress Aboriginal Corporation (ALPA), recently hosted a delegation of people from ASIC and toured two very remote communities in the Northern Territory. The ASIC Chair Joe Longo was part of that delegation, and he got to see firsthand the issues posed by poor digital and financial literacy on country. ASIC has previously partnered with the First Nations Foundation through initiatives such as the Financial Wellness Week and to date have helped to reunite over 2,160 individuals with over $25.2m in lost super alone.
“This sort of partnership aligns with our mission of supporting these communities while also diversifying our income streams,” Simon adds.
Bank in a box
Looking ahead, TCU is planning to roll out its innovative initiative “Bank in a Box”. Inspired by a successful remote laundry program, this involves placing secure, cyclone-proof containers equipped with banking technology in remote communities. These containers can serve as mini branches, providing access to cash, video conferencing with staff in Darwin, and even facilitating connections between community members.
“This ‘Bank in a Box’ would ensure permanent access to financial services in remote locations, where traditional branches are impractical due to accessibility and staffing challenges,” he explains.
The container can be remotely monitored and alarmed, with on-site security potentially provided through collaboration with other community services, like the laundries. Its pressurised and climate-controlled environment ensures durability and minimises maintenance issues that often plague traditional ATMs in remote areas. Furthermore, it offers a cost-effective alternative to establishing and staffing a full branch.
Continuing to empower communities
As TCU embarks on its next chapter, the focus remains on empowering communities through financial literacy, digital inclusion, and employment and training. They continue to explore new avenues for generating revenue, reducing member fees, and expanding their services to meet the evolving needs of their members.
“We’re trying to really align ourselves to a purpose, which is that empowerment of communities through financial literacy, digital literacy, and employment and training,” Simon states.
To find out more about TCU, head to: https://tcu.com.au/