FAQ
What
is Community Bank® ?
A Community Bank® branch provides communities with a vehicle
for facilitating economic revitalisation and the certainty
of local banking facilities.
The Community Bank® branch is a franchise, with the community
owning the rights to operate a Bendigo Bank branch.
Community Bank® branches provide communities with an opportunity
to enhance control over their community's capital, ensuring
more money stays in the district for local investment.
The Community Bank® model also enables communities to bank
the way they want, whether that be face to face, electronically or over the phone.
Does Community Bank® branch offer
full banking services?
Community Bank® branches offer all services that a major
bank offers.
Does it offer Business Banking?
Yes, Community Bank® provides full Business Banking services
including Commercial Lending, Leasing and additional services
ranging from Financial Planning to Wills. We have established
an account called the Primary Producer Account which is available
to farm owners and operators. This offers an interest-bearing
cheque account and overdraft facility at competitive rates.
Another one of our accounts is the Farm Management Deposit
account. This Account is a tax-saving investment account which
is available to primary producers.
What form of investment is the Community Bank® branch?
A local entity forms a company limited by shares to represent
the local community. This company raises investment funds locally
and purchases from Bendigo Bank the right to run a banking branch.
Why should I bring my banking to the Community Bank® branch?
Because by supporting your Community Bank® branch, you
are directly supporting your community.
Banks make profits from the differences in interest rates between
deposits and loans, called a "margin". Whenever you save or borrow,
the bank earns a margin, which of course usually goes straight
to head office.
The difference with a Community Bank® branch is that your
community directly shares this margin income.
Any profit the Community Bank® branch makes after deducting
operating expenses can then be ploughed straight back into
supporting local community needs.
Who controls the local side of the operation?
The local operating company. Bendigo Bank performs all the "back
room" banking functions - but the local company will employ and
pay the branch staff. In other words, these employees are not
Bendigo Bank staff members but will receive extensive training
and support from the Bank.
How long will our branch take to generate profit?
This is up to your community. If there is significant support
from the community, especially in the first six months, then
the rewards will come sooner.
Your community will prepare a business plan based on locals promising
to bank with the Community Bank® branch. The quicker they
shift their banking to your branch, and the more people who provide
long-term support to the branch, the quicker it can move into
profit and make money available to be channelled back into the
local community.
How safe is my money and my privacy?
As with all deposits, depositors are protected by Bendigo Bank,
which also makes all credit decisions and protects individual
client privacy. Community Bank® branch staff will be
bound by the Bank's confidentiality requirements.
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