The report suggests that loans given to Aborigines would have potential. Data shows that indigenous home ownership is lower than in the US, Canada and New Zealand, although the figures are now at 36%, up from 32 per cent in 1996.
"Banks may inadvertently discourage approaches by indigenous customers by applying standard customer and credit processes that are unsuited or not tailored to personal circumstances," the report says.
Many indigenous people meet the lending criteria but may not consider home ownership due a possible fear of not getting approval or an unwelcome response from the banks.
In implementing the plan to boost indigenous lending, ANZ will adapt it's existing products and marketing forms to better suit indigenous customers
Michael Rowland is managing director of mortgage at ANZ and looks for sustainable opportunities only. "Currently this is an under-served market," he said. "The majority of indigenous Australians live and work in urban and regional areas so it makes sense for now to focus on providing home loans in these areas."
The report highlights the structural issues inhibiting home ownership in remote areas of Australia, and says that for now ANZ must concentrate on promoting home ownership in urban and regional areas only.
The bank also has plans to work with employers of large numbers of indigenous workers to help improve employee's financial literacy