Supporting the notion of a māori bank
Originally posted on Linkedin - November 2024
Should a Māori bank be established?
Like a game of tennis this kōrero has been going back and forth for as long as I can remember with many arguments both for and against.
At its core;
⚫ Most use a bank on daily basis,
⚪ Banks profit off every dollar they hold
🔴 $6 Billion leaves Aotearoa to Australia each year
⚫ At a minimum a Māori banking system would retain profits in Aotearoa and at best it would enable the flow of retail and wholesale capital into the Māori economy enabling it to thrive.
Maria Ngawati and IndigiShare are using digital platforms to empower the follow of capital to pakihi Māori. He oranga whānau, he oranga hapū, he oranga iwi.
As our first interview, RŌA CONSULTING shared our support of establishing not only a Māori bank but a Māori banking system that shares the same core infrastructure with branches or franchises owned and operated by hapū, iwi and hapori.
Sharing the establishment costs while maintaining governance and operational authority to best serve the needs of their community. With profits remaining local for the purpose of increasing access to capital, providing financial education, relaxing risk appetites, investing in non-bankable deals and funding local kaupapa. (all the stuff a bank can't do)
The Commerce Commission review into personal banking for Māori was clear. Māori feel racially profiled, the cultural competency and Māori reputation within banks is low, and policies do not meet the needs of Māori.
A Māori banking system would introduce a new type of localized competition into the banking industry that would force the current players to take notice of and react to a loss of circa 20% of their customer base by way of increased investment and focus on suitable product for the Māori economy at all levels, from whānau, to hapori, to our larger organizations. ( 20% is conservative as what is good for Māori is good for everyone ) This would also have a positive impact on the Māori pay gap in financial services.
There are already success stories that Māori can point too, Māori Women's Development Inc (MWDI) is an example. Imagine the impact they could have if their loans increased from $50K to $500K. BlinkPay and their payment system, Tāwhia - Māori bankers rōpū shifting the system from the inside.
From experience in banking and insurance, Māori staff, Pasifika staff, and others go above and beyond to service their communities. A Māori banking system isnt an and or, its an and and. Providing options and stimulating competition.
Commerce Commission Wānanga summary: https://lnkd.in/g5Y8KMAX
Whakaata Māori - Te Ao Māori news full kōrero: https://lnkd.in/gqvDSDqS
To share your whakaaro please comment on the original post - https://www.linkedin.com/posts/teahooterangi-pihama-068a9b111_should-a-m%C4%81ori-bank-be-established-like-activity-7258229863243743232-_7_d?utm_source=share&utm_medium=member_desktop
