National Australia Bank has demonstrated its faith in the Indigenous business sector, with a new $1 billion lending target by 2026.
NAB will aim to boost its lending by 140 per cent to First Nations businesses and community organisations to capitalise on the sector's lucrative prospects, and stimulate growth and profits.
The bank's specialist Indigenous banking team will support growing the customer base of First Nations businesses, from a commercial and cultural perspective.
The First Nations Business Banking network of specialists have expertise in the Indigenous business sector, its prospects, clientele and customer growth.
The team was established in 2022 when NAB launched its First Nations business strategy, which aimed to position it as the bank of choice for Aboriginal businesses.
NAB Group Executive Business and Private Banking Andrew Irvine said the ambitious plan to ramp up current lending of $413 million to $1b would help stimulate growth and cement the sustainability of the cross-section of First Nations businesses, and provide further prospects for communities.
"First Nations businesses are leading the charge by driving self-determination, and rapidly improving financial capability and inclusion," Mr Irvine said.
"We have listened to First Nations businesses and community organisations around the barriers they experience when trying to establish and grow their businesses."
Cultural awareness was part of NAB's strategy, with its specialised banking team and wider staff network having undertaken cultural competency training.
"During the last two years, we have put the building blocks in place to better support our growing First Nations business customer base, from a commercial and cultural perspective," Mr Irvine said.
"From land councils to native food businesses, farmers to fashion designers, we are walking alongside our customers as they turn their business dreams into reality."
NAB will assess backing businesses that are 50-51% Indigenous owned and align with its commitment to responsible lending practices.
The bank has forecast the Indigenous business sector to grow by 4 per cent, compared to 3 per cent for the broader business market.
Supply Nation currently estimated 16,000 Indigenous businesses were in operation.
Collectively that segment managed more than $10 billion in annual revenue and employed more than 70,000 workers.
"Clear commitments from organisations like NAB to do more business with the Indigenous business sector and understand their cultural drivers will create more opportunities for Indigenous businesses to thrive," said Supply Nation CEO and proud Awabakal woman Kate Russell.
NAB believes its $1 billion target - revealed during Indigenous Business Month that ended on Wednesday - would also be a moral boost for the business sector and community organisations after the recent referendum.
In December, the bank pledged $10m investment in the New Harvest Indigenous Impact Investment Fund, designed to foster business growth and prosperity, with NAB specialists and industry experts working with Indigenous corporations and Traditional Owners to grow their the agribusiness expertise.
