SHARED VALUE FORUM Melbourne, Australia 14 April 2015 Transcript of Nan Caple, Director East Ivanhoe and Heidelberg Community Bank®, Bendigo Bank Thanks Sam and yes I am Nan Caple and I have lived in the Ivanhoe community for the past 38 years. I am not a banker, in fact I am a home wares retailer in my 26th years of business in East Ivanhoe. I have 4 adult children all of whom went to the local schools, played in the local football, basketball, cricket, netball teams, swam with the local swimming club, and danced at the local church HALL. My husband’s business is also located in the local shopping centre, and over the past 38 years we have volunteered on committees for kindergartens, schools, sporting groups, action groups, volunteered at the Austin hospital, and sat on the committee of the local church social enterprise coffee shop. I feel VERY connected to my community and am grateful for what it has given me personally and in business over the past 40 odd years. I am just one of numerous community members keen to see my local community be the best place to work in, to live in, to play in, and to BRING a family UP in. So, I am not a banker although I confess I know a lot more about banking now than I did in 1999 when I first was introduced to the concept of Bendigo Bank’s community bank. In 1999 our local shopping centre lost its last bank, giving customers just 4 week notice . Mostly single operators, local businesses were forced to put the BACK IN 30 MIN sign on their door to allow them to do their banking elsewhere. There were No ATM’s, life was very cash & cheque rich with no extended banking hours back then….our centre was wilting in front of our eyes and the community was angry and disappointed. A petition of 3000 signatures sent to all the major banks received no joy. The community felt totally let down, with no sense that their custom to the bank was valued. After hearing of the BB Community bank model a well connected community member gathered a small group of equally upset locals. It was a perfect fit. 250 locals agreed to purchase shares in the company that would then own the franchise to run a BBCB in our local shopping centre. Shareholders in this model were attracted because of the win win situation. Not only would we get a bank back!....but in addition an independent revenue stream, available for the community which otherwise would not exist. Shareholders would benefit through a dividend....albeit limited to not more than 20% of the company’s net profit, plus the community stood to benefit through a guaranteed revenue stream....being the remaining 80% of the net profit. The $’s raised from the shares was used as working capital for the company, covering the rental, the fit out, the employment of staff, and the day to day running costs of the bank …………while our franchise partner BB supplied the banking technology and knowledge, products and services. The Community Bank company was managed by a board of 10 volunteer directors committed to ensure good governance, and importantly spreading the story of the power of Community banking through their already established grass roots connections in their community. After 3 years the company reached profit returning a dividend back to shareholders as well as returning dollars to the community via Sponsorship, grants and dividends. After 8 years the company opened a 2nd community bank in Heidelberg. Another 250 shareholders were attracted, raising the required funds to meet the franchise commitments and establish the 2nd branch. Our CC now has 14 staff, 10 board members, 2 part time board support roles, bookkeeper and a Marketing and Community Liaison Officer, plus 500 local dividend-‐earning shareholders and an amazing total of over $ 2.4 million injected back into my/our community, the community of customers that has supported the Ivanhoe East & Heidelberg Community Bank branches of Bendigo Bank....and this $ figure is growing and will continue to do so. Who has benefitted in our community…..Sporting clubs, be it bowling, croquet, cricket, football, basketball, netball, tennis. Education groups, primary school, secondary schools, kindergartens, child care centres, playgroups, Health related organisations, Community housing support groups, disadvantaged youth projects, cancer support groups, local support groups for disabled members of our community. Let me be specific. THE Lower Plenty Dance group…we have sponsored their weekly dance night for 6 years. 60 local families with a disabled member share a joyful uplifting experience otherwise unavailable to them. Ivanhoe East Primary School…the CB provided the initial $200k that attracted State & Fed govt funds enabling a rebuild and expansion of the schools space centre, now hosting numerous community groups and organisation.. a real community asset. YF 3081 (the postcode for Heidelberg West.)This state-‐wide project saw Govt partnering with community banks in areas of youth disadvantage. A groundbreaking project giving a voice to the most unheard group in our community...disengaged youth. After the Govt pulled out in 2012 we were able to find a replacement partner with Latrobe University adding substantial value to the project. In 2013 we distributed 25 Defibrillators plus funded the training required to 25 groups & organisations throughout the community. We have discovered that the impact of the CB dollars can be multiplied through cooperative relationships… Rotary, BCC, BCHS and the local CB Company have co-‐funded initiatives resulting in heightened outcomes. This acknowledges the synergies between various community groups all working together for the benefit of the community. Our community is richer and healthier in so many ways. Our local company has an incredibly empowering partnership with BB through sharing the banking revenue of this franchise partnership 50:50. We have a bank back that provides good-‐quality-‐relationship-‐banking services to our community members. AND we have a revenue stream to feed back and adding value to our community. We have created wonderful, empowering, and productive relationships enabled great things to happen in our community that otherwise would not be. This model is totally sustainable, is based on, and encourages the intrinsic goodness, generosity and philanthropic spirit that naturally exist within all communities. Shared Value in its purest form.