Bendigo Bank celebrates 25 years of Community Banking
Bendigo Bank’s unique Community Bank model is celebrating 25 years of community owned and operated banking in Australia.
The internationally acclaimed model has grown from a concept designed to empower communities at risk of losing face-to-face banking services to a network of more than 300 branches with $20 billion in loans and $31.3 billion in deposits.
Founded in 1998 with branches in Rupanyup and Minyip, the secret to its success can be traced back to a key feature of the model which ensures a majority of the profits generated by each independently owned and operated Community Bank is directed back into the community.
Collectively, the Community Bank model is on track to return a total of $300 million in profits in its anniversary year. Community Bank funding often attracts co-investors such as local, state and federal governments creating a multiplier effect on the capital raised which has enabled projects totalling over an estimated $1 billion.
Bendigo Bank CEO and Managing Director Marnie Baker said the strength of the shared value model proved that Australians will support a genuine alternative to the banking oligopoly if provided with quality products and excellent, award winning service backed by a trusted financial institution.
“Bendigo Bank’s vision is to be Australia’s bank of choice and our purpose is to feed into the prosperity of our customers and their communities. The Community Bank model is aligned with both our vision and our purpose and we are immensely proud of its success.”
“I want to thank our Community Bank customers for their support, our team members for delivering quality service, local shareholders for backing their communities and all the passionate locally based directors for their hard work and dedication.”
“I also want to acknowledge the Board of Rupanyup/Minyip and the local community for their hard work and the important role they played in piloting this unique model, showing communities nationwide what can be achieved when we work together towards shared goals.”
Michelle Clark was among Community Bank’s first customers, visiting the Minyip Branch with her daughter Emma and opening an account on 26 June 1998. Emma opened a savings account with $10 and her savings would go on to fund the deposit on her first home 20 years later.
“The day the bank opened was so exciting, it was such a tremendous feeling. We could see the need for a bank in our community, put together a working group and started knocking on doors. We believed in what we were doing, made it happen and never looked back,” Ms Clark said.
“Small communities like ours are loyal, we want to support our town and we do that by banking with Bendigo. To this day I still bank with Bendigo Bank. My granddaughter is just four months old and one day we will open her first account at the Rupanyup/Minyip branch, just like her mother did.”
Community Bank National Council Chair Sarah Franklyn said the milestone was a ringing endorsement of the profit-with-purpose, social enterprise model. Ms Franklyn thanked the Community Enterprises that operate the branches, as they continue working together to ensure the model’s future success.
“The internationally recognised Community Bank model has been embraced by more than 300 communities across Australia, where branches support economic growth and their grants and sponsorships underpin and strengthen the social fabric.”
“As the custodians of one of Australia’s most successful social enterprise movements, we are pleased to celebrate the amazing outcomes achieved in the last 25 years and look forward to working together to evolve and adapt this unique model for the next generation.”
“I especially want to thank our Community Bank directors, many of whom volunteer their time, for their hard work. The success of our Community Bank companies is a testament to their passion and commitment to the success of their local communities.”
Bendigo Bank and its community partners will mark the anniversary today with celebrations at Community Banks around Australia.
