Bendigo and Adelaide Bank Submission: Inquiry into Regional Development and Decentralisation Bendigo and Adelaide Bank is pleased to make a submission to the Inquiry into Regional Development and Decentralisation. Our submission contains expert commentary, community case studies and replicable solutions relating to the Terms of Reference. As an organisation our Bank has strong ties to Bendigo, but our footprint and impact is felt more widely than Central Victoria. Through our vast and diverse network we are intrinsically linked to hundreds of rural and regional Australians and we can provide a unique insight into the experience, aspirations and activities of the people living in these communities. We know what’s happening at a grass roots level, but also see national trends. As a result we’d like to present three key opportunities to the Inquiry. These are to: 1. Streamline pathways for mobilised communities to access the funding and support required to fulfil their self-identified needs. 2. Facilitate and encourage shared service models to drive improved social outcomes and economic productivity. 3. Encourage people to live, work and do business in rural and regional Australia. We would like to affirm that Bendigo and Adelaide Bank is committed to working with government to grow prosperous, vibrant and sustainable rural and regional communities. Index 1. Bendigo and Adelaide Bank’s experience of corporate decentralisation a. About Bendigo and Adelaide Bank b. Bendigo and Adelaide Bank in Bendigo c. Initiatives to attract, retain and build skilled labour Scholarship Program Work Experience Program Graduate Programs Industry Based Learning Scholarship Australian Business and Community Network (ABCN) University Community Bank® Model Grow Our Own d. Initiatives to improve access to capital Social Impact Loans (Apprentice Support Program) Small Business Program Young Farmer Finance Farm Management Deposit Offset Account Research and recommendations to improve access to capital for agribusiness e. Population management 2. Community Banking – a best practice approach to regional development a. About Community Banking How Community Banking works Community Balance Sheet b. Leveraging the Community Bank® investment Case Study 1: Lang Lang, Victoria Case Study 2: Rye, Victoria Case Study 3: Mareeba, Queensland c. Making community-led solutions easy d. Issues identified by the regional and rural Community Bank® network 1. Bendigo and Adelaide Bank’s experience of corporate decentralisation 1a. About Bendigo and Adelaide Bank Bendigo and Adelaide Bank started out in Bendigo during the gold rush in the 1850’s. Our belief then, as it is now, is that the role of a bank is to feed into community prosperity – not off it. From humble beginnings, we’ve grown to be a truly national organisation. We’re a top 60 ASX listed company and employ more than 7400 people (including about 1300 people in Bendigo where our head office is based). We operate a diverse range of brands, but we’re most commonly recognised by our retail brand Bendigo Bank. Our Bank and the communities we serve have experienced increased prosperity over the past 20 years. This has been largely driven by the growth of our unique Community Bank® model, which is the most famous iteration of the Shared Value business models we create and operate. Shared Value business models (like our own) play a key role in business and society, as they apply a commercial solution to a societal problem thus generating a win for business and the community. Community Banking is a world-renowned example of a Shared Value business. Through this model our Bank and the communities we partner with have been able to provide a significant and ongoing capital injection into the Australian economy and more specifically regional economies where more than half of all Community Bank® sites are located. Community Banking is just one way our Bank partners with regional communities, yet it is where our organisation has developed the most expertise and understanding in what communities really need to be successful. As a Bank, we collectively know a lot about Australia outside of the metropolitan capitals. From our experience in regional communities, we can see that the key to creating healthy economies is striking the right mix of skilled people, connecting them, and ensuring they have access to the capital required to build strong, vibrant, engaged and inclusive communities. 1b. Bendigo and Adelaide Bank in Bendigo Bendigo and Adelaide Bank is headquartered in Bendigo, and we’re one of only a few top 100 ASX listed companies to base itself outside of a metropolitan city. Our organisation has not experienced decentralisation in the traditional sense, instead we have always been based in Bendigo and have successfully grown a national business from a regional location. We now boast offices and branches in more than 650 locations across Australia, and one agency in Nauru. In 2008, the Bank built its new headquarters in the heart of Bendigo’s CBD – an investment that instantly transformed the city and put it on the map as the leading regional centre for financial services and forward thinking. The Bank employs about 1300 people in Bendigo which makes a significant contribution to the diversity and strength of the local economy. Below is a snapshot of economic analysis performed by the City of Greater Bendigo exploring the multiplier effect of the Bank’s presence in Bendigo: 1c. Initiatives to attract, retain and build skilled labour Bendigo and Adelaide Bank’s contribution to the Bendigo economy is evident. However, we have expanded our efforts to attract, retain and build skilled labour in regional and rural communities Australia-wide through a number of purpose-built programs and initiatives. Our organisation has a strong focus on educating and upskilling young people and the following case studies detail how these efforts are building human and economic capacity in the regions. Scholarship Program The Bendigo and Adelaide Bank Scholarship Program was established in 2007 to address the disadvantage students from regional areas face in attending tertiary education compared to their metropolitan counterparts. Starting from just one scholarship, the Program has grown such that today it is the Bank’s most financially and socially significant contribution to education, addressing the growing education gap between people living in regional and metropolitan areas. The Program has seen consistent expansion over the past 10 years to include partners such as the Bank’s Community Bank® network, La Trobe University, University of Melbourne and Montmorency Secondary College. Building on Rural Finance’s 25 years of scholarship history, Rural Bank extended its Scholarship Program in 2017 to support nine undergraduate university students pursuing studies relating to agriculture and rural sustainability. Originating from all corners of Australia, the successful recipients represent the next generation of rural leaders who will bring fresh and innovative approaches to the agricultural sector. Work Experience Program Established in May 2014, the Work Experience program provides Bendigo secondary school students with experience working in the banking and finance industry for one week. In 2017, about 50 students will experience a typical work day, with more than 200 students, teachers and staff working together to support and maximise the experience. Graduate Program The Bendigo and Adelaide Bank Graduate Program was established in 2012 to provide university graduates experience working in the financial services sector gaining skills across a variety of divisions that strengthen their chosen field of study. This year, nine students located in Melbourne, Adelaide and Bendigo were employed, with 28 graduates completing the two year program since it launched. In addition to the Group’s Graduate Program, the Ag Achievers Graduate Program offers training to university graduates to develop specialist knowledge in agribusiness and finance. As part of its commitment to growing rural leaders, Rural Bank welcomed three graduates in Victoria and South Australia in 2017, giving them a kick-start to their career and the opportunity to retain employment with the Bank upon completion of the program. Industry Based Learning Scholarship Since 1995, the Industry Based Learning Scholarship has funded students undertaking Computing or Information Technology degrees at La Trobe University, Bendigo, providing a year of industry experience as part of fourth year study. More than 80 students have received a scholarship, significantly increasing their learning outcome and employment prospects in their field of study. Many scholarship recipients have been employed at the Bank’s headquarters in Bendigo, enriching the region with skilled technology professionals. Australian Business and Community Network (ABCN) Bendigo and Adelaide Bank has actively supported ABCN in South Australia, Queensland and Victoria since 2013 through various mentoring programs with high-needs schools to improve opportunities for disadvantaged students. In addition, the Bank has supported the ABCN Foundation Scholarship Program for year 11 and 12 students such as Central Victorian student Meghan Frederick, who has her sights set on a career in medicine or scientific research. This funding assists in purchasing study resources and help alleviate the financial strain of further education. University Community Bank® Model Deakin University Community Bank® is an Australian