Drouin & District Community Bank - Alive and Well

Chairman Max Scott introduced Rob Hutchinson, the Branch Manager of the Drouin and District Community Bank who addressed members on the advantages of community banks, as well as some history of this commercial model of banking and the of the Drouin bank itself.

     A Community Bank ^® branch is a locally owned and operated company, which functions as a franchise of Bendigo and Adelaide Bank. The Bank provides the coverage of its banking licence, a full range of banking products, training of staff and ongoing support.

     Depositors are protected by the Bank's imposing track record when it comes to the security of depositors' funds. We are one of Australia's oldest financial institutions, we have operated since 1858 and have declared a profit in every year and we have without fail honoured our depositors.

     Bendigo Bank and the community company are each entitled to agreed portions of the revenue of the local Community Bank^® branch and the local company is responsible for paying branch running costs.

     When the local company begins to make a regular operating surplus, after the payment of branch running costs, and Bendigo Bank's share of the revenue is received, the remaining funds are available to be reinvested back into the community through dividends to shareholders and grants to community groups and projects.

     Between 1993 and 2000, more than 2,050 bank branches closed across Australia. These closures represented a 29% reduction in branch numbers in just seven years and many communities were left without branch banking facilities. Bendigo Bank identified this trend and recognised the impact the reduction in branch numbers was having on communities. Launched in 1998, Rupanyup/Minyip was the first Bendigo Bank Community Bank^® Branch. The Community Bank^® story first started in 1998 when Bendigo Bank partnered with the Victorian communities, Rupanyup and Minyip, to establish a banking pilot to return banking services to the towns. It succeeded, and since the twin branches inception a decade ago, they have channelled more than $700,000 in profits back into community projects.

     Locally, Drouin & District Community Bank has invested more than $4.2m back into our local Community since opening in 2002.

 

Chairman Max thanked Rob for his presentation, noting the significant value that the Community Banking model had brought to the Communities in which they operate, Drouin being one such beneficiary. Several members also spoke of the support that their organisations had received over many years and none more so than Lyre Bird Village.