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The success of a local government agency can often be measured in its ability to be nimble in providing aid and services to its community in their time of need.
And as the impact of climate change has seen a dramatic increase in the number and severity of natural disasters, impacting state, regional and local areas, that need for aid – both financial and physical – is clearly rising.
Data from the Australian Department of Home Affairs shows there were 69 natural emergencies which affected local governments in 2023, while in the months since January 2024, there have been upwards of 44 natural disasters, affecting 190 Local Government Areas.
When responding to community needs, whether it be a weather-related emergency or providing access to emergency food or housing on a more regular basis, it is important that local government agencies can activate quickly and scale up to reach all those in need of their assistance.
Will Feutrill, RVP Incentives AU at Blackhawk Network, has 20 years of experience in strategic communication and using technology ecosystems and incentives to create better outcomes.
Below, Will shares three tips for government and not-for-profit organisations looking to develop secure, cost-effective and time efficient payment systems which can be activated quickly in emergency situations.
Pre-established partnerships and agreements:
Time is critical in emergencies. According to the Australian Disaster Resilience Handbook Collection 2023, local governments and not-for-profits have a key role in emergency management due to their ‘strong relationship with their local community networks and knowledge of locally available resources’.
Developing and maintaining partnerships with trusted vendors ahead of time allows for the quick activation of payment systems to those in need. This includes having procedures in place for the issue, distribution and redemption of payment services.
Liverpool City Council (UK) found themselves requiring a way to distribute funds, quickly, for their Free School Meals Program. BHN’s dedicated account team worked closely with the Council to oversee an expedited order (within 24 hours) for over 250,000 gift cards, totalling to £4.1m (AUD$7.9m) which delivered 480 foodbank parcels via the Liverpool City Council Winter Boost Project. This model was so successful, BHN received further funding to support the Council’s Free School Meal Programme and continue meeting community needs.
Scalability and Flexibility in System Design
The Liverpool City Council scenario is also a lesson in scalability and flexibility. No two emergencies look the same and it is important that an appropriately measured response can be executed. Consideration should be given to the type of compensation required by affected communities and how they might access their payment.
Australians bank in different ways. BHN’s research has identified three distinct groups. The
majority use traditional banking services, but there are others (the “unbanked”) who manage their money through alternative systems, and the “underbanked” that use both traditional banking and alternative banking services like payment services or even cheques or money orders. In an emergency, your payment system should be able to meet all financial needs.
In an emergency, agencies also need to consider that banking technology, power and communications may not be able to be accessed, particularly in remote communities, and this can impact on the ability to deliver emergency payments quickly and effectively.
Digital pre-paid cards are one alternative that can be delivered quickly to those in need and our research shows that when receiving disbursements, 67% of underbanked and 66% of fully banked Australians report a preference for digital prepaid cards.
Underscoring the need for flexibility and innovation in payment methods is the announcement of the Australian Government’s Strategic Plan for Australia’s Payments System which will see the phase out of cheque usage by government agencies by 2028, ahead of the cheque system winding down by 2030.
Our BHN dedicated account teams work closely with government agencies to ensure that payment programs are needs-based, and can leverage pre-paid, open loop (redeemed anywhere), closed loop (redeemed at select retailers and service providers), eCodes or giftcard methods to provide the most efficient solution.
Robust Security and Fraud Prevention Measures:
In emergency situations there may be heightened vulnerabilities to fraud, exploitation and high costs. Robust security measures protect the funds allocated for relief efforts and also maintain public trust in the integrity of aid distribution processes.
With over 17 years of experience in disbursing funds for Australia’s largest organisations, we recognise the value and importance of secure fund disbursement solutions. As an ISO27001 and General Data Protection Regulation (GDPR) accredited service, BHN can assure partners our teams keep security at the forefront of what we do.
Government agencies are urged to consider how they can establish alternative payment systems which are ready to activate in an emergency situation. Current systems are time consuming to administer at scale, not always user friendly in an emergency, and can be vulnerable to fraudulent activity. Local councils should consider gift cards and digital payment methods like e-vouchers as part of their emergency planning.
For more information, see https://blackhawknetwork.com/au-en.
