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Strategy for Growth

3 September 2018 |Industry Updates
Jan Edwards outlines Alliance Banks strategy for the future.

Strategy for Growth

3 September 2018 |Industry Updates

Joining Alliance Bank is not an exit strategy. It's an opportunity for growth. Boards under the Alliance Bank Solution have the freedom to think outside the parameters imposed by APRA. Growing the business while investing in the economic and social well being of their members and communities for them is a reality.

The Board at BDCU Ltd. recognised an opportunity to shift their market focus and in doing so have realised considerable growth.

Partner: BDCU Alliance Bank®

Opportunity: To initiate robust, sustainable growth by shifting market focus to the local businesses in all of its markets and through them to the local community.

Strategy: To use imbedded commercial and advice capacity to strengthen the local business community and through it the local economies in which they operate.

The Bottom Line: Growth in BDCU’s Business and Commercial business in the last 2 years:

  • 20% growth in business members

  • 25% growth in business accounts

  • 24% increase in business deposits 

  • 40% increase in business loans 

  • 28% increase in value per business member

Initiatives:

The Collective Goulburn and Mittagong – nominated for a business innovation award, these local business hubs incorporate public spaces and amenities, co-working spaces and offices for SMEs professional mentoring and business community support systems together with a BDCU Advice Centre.

Within the Collective in Goulburn and in the centre at Bowral BDCU has partnered with two cafes and re-introduced vocational training to the community in partnership with an accredited training organisation to train hospitality apprentices. (In response to the withdrawal of TAFE services from the area). This provides trainees with the experience they need to achieve accreditation and supports them within their local community.

Apprentice Support Program – Supporting local small businesses and apprentices the program offers, financial literacy mentoring, professional mentoring, interest free loans of up to $5,000 for local apprentices and discounts from local suppliers to purchase the tools of their trade.

The Program is designed to:
  • Build credit worthiness, improve financial self-reliance and independence 
  • Increase financial literacy and business and leadership skills 
  • Create financially savvy employees
The social outcomes: 
  • Apprenticeships provide a genuine option for school leavers
  • Young people remain in the local region 
  • Local businesses are better able to hire the necessary apprentices to grow 
  • Successful apprentices often start their own business and subsequently employ others
As the available pool of funds is recycled through to new apprentices a cumulative increase in shared value outcomes is realised. To date BDCU Alliance Bank® has supported forty-three apprentices with loans totalling $144,000. Total other loans to apprentices in the program is $652,000 and deposits from this group total $300,000.

New Business Incubator Program – Incubator program for local start-ups in the Goulburn region in partnership with Goulburn Connect.  This is a shared community and business partnership attracting federal funding.

The program provides seed funding and an education program for local business conducted within the Collective Goulburn. It also facilitates business networking and allows start-ups to benefit from the shared experience and knowledge accumulated within local businesses and the local Chamber of Commerce.

Local Business solutions – New skills and specialists have been introduced into the BDCU team through dedicated local business and commercial advice teams. A full suite of business products and services are now available including: 
  • Business and Commercial Insurances
  • Xero and MYOB
  • 5-year fixed interest commercial loans
  • Equipment Finance 
  • EFTPOS facilities with portability option 
  • Uncapped business-lending limits

Alliance Banks have the freedom to choose how they want to grow their business and engage with their communities. A local lens on the needs and opportunities within your community can lead to strong business growth.

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Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. AWA Mutual Limited®, BDCU Limited®, CIRCLE Mutual Limited®, NOVA Mutual Limited® and SERVICE ONE Mutual Limited® (Alliance partners) are independent mutual entities that have formed an alliance with Bendigo and Adelaide Bank. AWA Alliance Bank®, BDCU Alliance Bank®, CIRCLE Alliance Bank®, NOVA Alliance Bank® and SERVICE ONE Alliance Bank® are trademarks of Bendigo and Adelaide Bank Limited.

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