Indigenous Business Australia and the Commonwealth Bank have entered into a new partnership to open access to home ownership, business lending and renewable energy opportunities for Aboriginal and Torres Strait Islander people.

Announced on October 29, the Memorandum of Understanding commits the two organisations to collaborate on programs that will "unlock better financial outcomes for First Nations people through home and business lending, and participation in renewables and carbon projects," according to a joint statement.

The agreement marks a significant alignment between one of Australia's big four banks and a federal agency with a 50-year history of supporting Indigenous economic participation. It aims to address barriers to finance that have long limited Indigenous household and business growth.

Under the partnership, IBA and CBA will develop new approaches to home ownership and small business lending while exploring joint investment in renewable and carbon projects. They also plan to create mentoring and training programs to build financial capability and strengthen collaboration between their teams.

IBA chief executive David Knights said the partnership reflected "a shared commitment to creating financial pathways that empower First Nations individuals and communities", and is a practical step toward building a stronger Indigenous-led economy.

"By working together, we can open more doors to culturally appropriate finance, building a stronger Indigenous-led economy for generations to come," he said.

CBA's Group Executive for Business Banking, Mike Vacy-Lyle, said the collaboration extends the bank's long-term focus on reconciliation.

"CBA has a longstanding commitment to reconciliation and to being a trusted financial institution to First Nations peoples," he said.

"Together we aim to unlock more opportunities and meaningful outcomes for Indigenous Australians."

The partnership comes as both organisations seek to redefine their roles in Indigenous economic development.

Earlier this month, IBA Chair Darren Godwell outlined a plan to expand the agency's capital base "from hundreds of millions to billions" to support Indigenous economic self-determination.

Speaking at the Northern Territory Indigenous Business Network's Aboriginal Economic Development Forum in Darwin, he said IBA's next phase would focus on building long-term Indigenous capital that invests back into communities and enterprises across the country.

For the Commonwealth Bank, the announcement builds on the release of its Reconciliation Action Plan 2026-2028, which has received Elevate status from Reconciliation Australia. The plan commits to increasing Indigenous employment, improving access to financial services and expanding the bank's support for Indigenous businesses.

Earlier this year, the Indigenous Business Review reported that CBA had spent more than $62 million with Indigenous-owned suppliers in FY25 and set a target of $100 million within three years.

Vacy-Lyle said the new partnership aligns with the spirit of this year's Indigenous Business Month theme, Strength Through Collaboration.

"Our work with Indigenous Business Australia has a clear focus on creating meaningful, sustainable change-whether through financial inclusion, career pathways or supplier diversity," he said.

"We also recognise the importance of culturally responsive banking experiences and continue to invest in dedicated bankers who understand and respect the diverse needs of First Nations customers."

The collaboration is expected to create tangible outcomes for business owners and households. IBA will bring its expertise in culturally informed lending while CBA provides national reach and scale. Together, the two organisations will look at co-funded lending models and shared renewable projects as well as professional mentoring for Indigenous entrepreneurs.

Knights said the partnership supports IBA's Strategy to 2030, which focuses on entrepreneurship, housing and community investment.

"It's about walking together to create a more inclusive and prosperous future for all, one that champions entrepreneurship, supports home ownership and invests in the future of our communities," he said.

The announcement also highlighted Indigenous businesses already supported by both organisations.

In Brisbane, Jagera man David Hulett built his company, Promo Gear, with help from IBA in 2015 after struggling to secure finance through mainstream lenders.

"We had so many doors closed on us," he said.

"Our business was built on a lot of goodwill and intellectual property which can be difficult for the traditional finance industry to quantify."

After securing IBA financing, Hulett expanded the company and later obtained a loan from CBA to fund its next phase of growth.

"As a business that has been supported by both IBA and CBA, it's great to see them coming together like this. Each organisation has different strengths and I'm excited to see what they can achieve together," he said.

In Katherine, Quandamooka woman Madelyn Farrington and her partner Ryan Butterworth run Butterworth Industries, a civil construction business that received an IBA loan and business mentoring.

"This support has been really important to us, helping us reduce costs and improve operations and further support our staff to grow," Farrington said.

"I hope to support locals within our community to join us in strengthening what our business can provide for future generations."

The Indigenous business sector continues to expand, with around 14,000 Indigenous-owned businesses generating $16 billion in 2022. Deloitte Access Economics projects that figure could reach $50 billion by 2035, outpacing the national average.

Knights said partnerships such as the one with CBA were critical to maintaining that momentum.

"By combining IBA's community-based approach with CBA's commercial scale, we can make meaningful progress toward long-term Indigenous economic empowerment," he said.

Both organisations will begin work immediately to identify joint lending opportunities, renewable investments and mentoring programs under the new agreement. Progress will be reviewed annually, measuring results in home ownership, business creation and employment outcomes.

For IBA, the partnership strengthens its role as the leading financial institution for Indigenous Australians. For the Commonwealth Bank, it reinforces its commitment to reconciliation through practical action.

Together, they are seeking to close the credit gap that has long limited Indigenous economic participation and to ensure Indigenous Australians have equal access to the tools of financial opportunity.