Bank accounts a key tool for reducing ex-prisoner reoffending

New research conducted by Te Herenga Waka—Victoria University of Wellington finds that taking simple steps to enable ex-prisoners to open bank accounts would assist them in accessing housing, employment, and benefits, which would reduce the risk of re-offending.

The research, led by Senior Lecturer Victoria Stace, was commissioned by FinCap. The findings of Stage 2 of this work are based on interviews with a broad group of stakeholders, including representatives from the banking sector, financial mentoring organisations, community groups, and the Department of Corrections.

The research has developed a set of practical recommendations to make this happen, including:

• Corrections should ensure that prisoners have ID documents prior to release (birth certificate and a form of photo ID), and given the opportunity to apply for a bank account prior to release
• Major banks should participate in a programme that offers bank accounts to people in prison who are due for release.
• Every prison should have access to at least one financial mentoring service, with regular financial capability workshops for inmates.

Read the report here.