Did you know that not all banks are the same when it comes to making a positive difference and strengthening local communities?

For more than 25 years, Community Banks have played a crucial role in the rapidly evolving banking and finance sector. Overseen by more than 1500+ passionate volunteer directors, they’re providing banking and financial services at more than 300 locations with one significant difference – this unique profit-with-purpose model reinvests and shares those profits back into the local Australian communities that helped generate them.

The community banking sector is the perfect demonstration of what’s possible – taking the traditional banking model and turning it on its head to deliver social value and fulfil unmet need, particularly in regional communities where more than half our branches are located.

This internationally acclaimed business model is essentially a social enterprise – in essence, a business that:

• has a defined primary social, cultural or environmental purpose consistent with a public or community benefit;
• derives a substantial portion of income from trade; and
• invests efforts and resources into purpose, such that the public/community benefit outweighs private benefit.

Now joining the social enterprise sector

Today, we’re recognising 214 Community Bank companies as part of the social enterprise sector and welcoming them into the Social Enterprise Identifier – an interactive dashboard with the largest database of unique social enterprises in Australia. Along with Community Banks, the data sources also include information from ACNC, Map for Impact and Social Traders certified social enterprises.

Commenting on this latest significant addition to the Identifier, Tara Anderson, CEO Social Traders said, “It’s a wonderful acknowledgement of how Community Banks are playing a powerful role in creating stronger communities to deliver positive change. We’re proud to welcome the Community Bank network into the social enterprise sector and we aim to amplify the message about the impact they are having and to help make purpose-driven banking the norm.”

Prioritising profit for purpose

In December 2023, Heidelberg District Community Enterprise Limited (HDCE) and its Community Bank Ivanhoe branch became the first certified social enterprise within the Community Banking model. There are now 41 Community Banks certified as a social enterprise and that number continues to steadily grow. It’s testament to the commitment Community Banks have to prioritising profit for purpose.

In FY24 alone, 214 Community Bank companies generated $387 million in revenue and the profits reinvested into Australian communities included funds for sport and recreation, facilities and infrastructure, education and research and health and wellbeing.

For the 41 certified social enterprise Community Banks, they’ve reinvested almost $23 million delivering some incredible projects, scholarships and other activities that have made a real difference – some of them lifesaving.

The strength of Community Banks lies in their ‘place-based’ approach, supporting local communities to help them thrive. But they’re also a national collective that since inception in 1998, have delivered a total of more than $366 million and brought together the strengths and knowledge of multiple social enterprises – to innovate, create purpose and progress together.