How does Community Banking work?

Community Banking – How does it work?

Profit for purpose – 80% of profits are reinvested back into the community 

In the same way as a regular bank, your Community Bank offers products and services with the goal of being a profitable business. But Community Banking is based on a ‘profit-with-purpose’ model, which means our profits are returned directly to the community that has generated them – people living in postcodes 3799 and 3797 – that’s you!

We call this ‘shared value’ and this is a foundation of our Community Bank branches, which are owned by the community (account holders and shareholders) for the community.

Imagine a bag of money generated right here from the customers who bank with us. Once the typical expenses of running a business (franchise fees to Bendigo Bank, wages, operating costs and so on) are accounted for, the amount left is ‘profit with purpose’.

In big banks, 100% of that profit is returned to shareholders but in Community Banking we are different. Our shareholders agreed at the outset to receive only a 20% share, leaving the remaining 80% for reinvestment in the community via sponsorships. That’s where the money comes from and that’s how we’ve been able to put $3 million back into the community through sponsorships. Simple isn’t it?

And there’s a simple reason to bank at your Community Bank – because it means something you have to do every day anyway actually benefits you and your community every day.


what is comm bnaking new logo