Can the First Nations poverty trap be broken? – The Globe and Mail
December 18, 2017
Keith Martell is CEO of the First Nations Bank of Canada. Adam Spence is founder and CEO of SVX.
Of all the challenges facing Canada’s First Nations, lack of access to banking services never makes the news. But Canada’s Indigenous communities are among those most underserved by Canada’s financial-services sector – and it’s a bolt that helps keep the poverty trap shut tightly.
In many remote places, the nearest branch can be hundreds of kilometres away, so there’s no easy way to open an account or cash a cheque.
Federal law also limits use of on-reserve property as collateral, severely restricting Indigenous people’s ability to start businesses or get personal loans.
If Canada’s current efforts at reconciliation with its First Nations are to bear fruit over the long term, creating a financial system that works for Indigenous populations must be a priority. One solution that could help: Tapping the potential of Canada’s $9.2-billion “impact investing” market.
