To understand how we can improve financial wellbeing, we are listening to our customers to understand what is important to them, as well as working with community groups, experts in economic and social studies, and policy makers to better understand Australia’s most pressing financial challenges.
A vital step to achieving our purpose is also defining and measuring financial wellbeing so that we can work to improve it in meaningful ways.
To do this, we have worked with the Melbourne Institute (MI): Applied Economic & Social Research to create two ground-breaking measures of financial wellbeing:
- The CBA-MI Reported Financial Wellbeing Scale (version 1) is formed from people’s responses to 10 questions about their perceptions and experiences of their own financial wellbeing; and
- The CBA-MI Observed Financial Wellbeing Scale (version 1) is formed from five measures that come from customers’ financial records.
The Scales provide comprehensive yet simple measures of financial wellbeing outcomes that can be used by Australians to better understand their own financial wellbeing. The Scales are also available to others, such as institutions, policy makers, academics and community organisations, to help build a body of knowledge that can be shared and replicated, both in Australia and internationally.
The following report is an easy-to-read summary of some of the Scales research findings. As well as suggesting a comprehensive definition and way to measure financial wellbeing, the report shares insights gained using these new measures.
We will continue to refine and build on this research in the years ahead to help us pursue our purpose through practical actions that make a real difference to those we serve.
In sharing this research, we invite others to do the same.