Jobs Australia CFO forum

October 2016

Acknowledgment of country

I would like to acknowledge the traditional

owners/custodians of the land on which we

meet today. I would like to pay my respects to

the Elders past and present and I would like to

extend my respect to the Indigenous people

and colleagues who are present today.

Our story

• 2002 - launched as joint venture between Bendigo Bank & Community 21 (a consortium of not-for-profit organisations), bringing together the knowledge of not-for-profits and the best of business banking

• 2016 - approximately 12,000 not-

for-profit customers ranging from small local community groups to national charities

Our shareholders

Community 21 is a consortium

of not-for-profit organisations

advancing the financial future

of the not-for-profit sector

The consortium consists of 38

organisations working in social

services, affordable housing,

disability, animal welfare,

conservation and many more.

Our shareholders

• Bendigo Bank - widely recognised for safe and secure investing

• 600 plus branches nationwide

• A- rating with all three ratings

agencies (Standards & Poors, Moody’s and Fitch)

What drives our attitude to

innovation?

• The need for efficiency or process improvement

• Customer demand – a better customer experience, or capacity building of the sector

What drives our attitude to

innovation?

Innovation examples

• Micro credit – In roads

• Shared Equity – Unpack for good

• Crowdfunding and Banking –act.

• Social Investment Deposit Account

Micro credit – In roads

An initiative helping people get back on their feet by offering them access to financial services not available in mainstream banking. In-roads: • Offers fair and affordable loans with flexible

repayment options • Provides money management skills through

education • Helps build credit rating through repaying a real

loan.

Micro credit – In roads

To date the program: • has received 530 applications • approved over $656,000 worth of loans • 80% of approved loans are from applicants in

receipt of income payments from Centrelink, and • 69% of applicants identified as Indigenous. • New partner identification – Dingley Community

Bank pilot

• A pathway to home ownership assisting low to middle income earners own a home

• Provides an alternative finance solution for Community

Housing Providers (CHPs), government and home owners • Alleviates the stress of rental shortage and affordability

• Provides pathways into homeownership for eligible residents

leading to increased social outcomes and mobility for individuals/families

Shared equity–unpack for good

How does it work? Traditional home loan

• Traditional 1st mortgage

• Structured to enable residents to service mortgage within their means

Equity component • Equity component from co-owner

(CHP/Gov’t) covers shortfall in deposit funds and/or funding available from traditional mortgage eligibility

• No interest payable on equity

component, repayment at end of term or sale

Resident

Equity

CHP/Gov’t Traditional Mortgage + +

Crowdfunding and banking – Letsact!

• World first model that combines banking with crowdfunding • act. provides a range of personal banking services- savings accounts,

credit cards, home loans and personal loans • The big difference is from its profits, act allocates Impact Dollars to

customer accounts. These can be donated to any of the social projects at letsact.com.au

Choose banking products

Earn Impact Dollars

Support projects

Crowdfunding and banking – Letsact! • Winner of Money magazine’s 2016 Best of the Best award for Best

Innovative Banking Product

• More than $370,000 raised for community minded projects

• 70% funding success rate

• 3,500 act. users • New Partner model strategy

Social investment deposit account

(SIDA)

• Unique deposit account with a big difference certified by the Responsible Investment Association of Australia (RIAA)

• Designed for individuals and organisations

• Community Sector Banking donates up to 50% of its net profits from these accounts to our Social Investment Grants Program

• Account holders can also choose to donate 50% or 100% of the interest to the Social Investment Grants Program

Social investment deposit account

(SIDA)

Key Achievements:

• Granted $350,000 to community organisations in 3 years

• Grant pool has doubled in size each year

Our vision for reconciliation

• True reconciliation requires action. We are committed to

playing a significant role in seeking to close the gaps that

currently exist between Aboriginal and Torres Strait Islander

people and non-Indigenous people

• We aim to create a more just, equitable and reconciled

Australia

• Community Sector Banking's Reconciliation Action Plan

(RAP) was launched in May 2013 during National

Reconciliation Week

• Now entering stage 2 - innovation

BCorp certification

• Certified in 2015, Community Sector Banking is the first

banking service in Australia to receive certification

• Provides a globally recognised standard for sustainable

business

• Being a B Corp provides a recognisable way of proving that

we are a social business, not just a financial institution

• We align ourselves with like-minded businesses, not-for-

profits and social enterprises not only in Australia, but across

the globe

Questions?