Shared Value Forum 2017
Shared Value Forum 2017
Alliance Bank was awarded a Storyteller position the 2017 Shared Value Forum in Melbourne. Jan Edwards shared the story of Alliance Bank's new and innovative Social Impact Loan Program.
To have the opportunity to present at the Shared Value Forum as a 'Storyteller' businesses must demonstrate a genuine shared value outcome by way of the key business and social metrics associated with a project or enterprise. Alliance Bank was selected from a large field of applicants for its Social Impact Loan Program.
The Social Impact Loan Program enables Alliance Bank Partners to apply the profits from running their social enterprises to borrowers that wouldn’t ordinarily qualify for loans, due to risk and regulatory requirements.
Jan Edwards, CEO BDCU Ltd., spoke on behalf of the Alliance Bank group about BDCU Alliance Bank's Apprentice Support Package, an initiative that falls within the Social Impact Loan Program.
Launched in November 2016 the Package enables local apprentices to access a no-interest, fee free loan to purchase tools of their trade, and is part of a wider program designed to support community sustainability through seeding and fostering local business. The package itself includes discounts on tools from local suppliers, financial literacy mentoring and professional mentoring.
The program will increase business and leadership skills while building personal and professional confidence.
The community benefits are far-reaching. While helping small businesses bring on the apprentices they need to grow, the program enables young people to stay within their local communities and provides them with the skills they need to become the local entrepreneurs of tomorrow.
Shared value outcomes will be realised through the apprentice’s long-term customer value and via their circles of influence, the size of which are estimated conservatively to be 5 people. Based on just 40 loans BDCU Alliance Bank estimates profits from the program of $190,000 in year one and $170,000 in year two.
As the available pool of Apprentice Support funds are recycled through to new apprentices a cumulative increase in shared value outcomes is expected, which provides additional opportunity to extend the funds directed to the program.
In terms of the potential, the Apprentice Support Package sees an initial application of $200,000 of Alliance Bank partner capital, out of a total capital pool of over $40 million.