As Yarram explores new pathways through the Future of Yarram program, establishing a Community Bank could be considered at least as vital—if not more so—than many of the existing working group streams. With the town facing the closure of its corporate bank branch, reliable access to financial services is fundamental to economic resilience, ageing population needs, and regional independence.With Bendigo Bank closing its corporate branch in Yarram, the town faces a serious gap in essential banking services. For an ageing population, small businesses, and community organisations, the loss of a physical branch isn’t just an inconvenience—it’s a blow to local resilience and economic independence.
But there’s a solution with a proven track record across regional Australia: the Bendigo Bank Community Bank model.
What Is a Community Bank?
A Community Bank is a franchise partnership with Bendigo Bank, where the local community owns and operates the branch. Bendigo provides the banking infrastructure, compliance systems, and product range. The local company handles operations, staffing, and reinvests profits back into the region—usually through grants, infrastructure support, or shareholder dividends.
Bendigo Bank Community Banks exist in the likes of Maffra, Foster & Toora
Over $366 million has already been returned to communities under this model since its inception in 1998.
Why Yarram Should Consider It
Banking is essential infrastructure. Without it, businesses struggle to manage cash, elderly residents are forced to travel for basic services, and the digital divide widens. A community bank is not just a service replacement—it’s a long-term investment in economic autonomy.
Yarram has the right conditions:
- A cohesive, civically engaged population.
- Active leadership through the Future of Yarram initiative.
- State government backing through the Victorian Community Development Fund.
How Much Would It Cost?
Establishing a Community Bank typically costs between $300,000 and $700,000, depending on premises, staffing, fit-out, and initial operating costs. This capital is usually raised through a public share offering—where locals purchase small parcels of shares and become part-owners of the bank.
However, Yarram may not need to self-fund this entirely. Why?
The Opportunity: Future of Yarram & the Community Development Fund
The Community Development Fund (CDF), part of Victoria’s Forestry Transition Program, is already backing the Future of Yarram strategy. Funding has supported local working groups focused on tourism, creative industries, and economic diversification.
But banking access is just as critical—perhaps more so.
A Community Bank proposal could be positioned as a new project stream under the LDS (Local Development Strategy), either through:
- Stream 1 (up to $500,000): For feasibility studies, project management, and capacity building.
- Stream 2 (up to $2 million): For capital investment, business case implementation, fit-out, and branch setup.
As Yarram explores new pathways through the Future of Yarram program, establishing a Community Bank could be considered at least as vital—if not more so—than many of the existing working group streams. With the town facing the closure of its corporate bank branch, reliable access to financial services is fundamental to economic resilience, ageing population needs, and regional independence.
Step-by-Step: How Yarram Could Launch a Community Bank
Assuming this project is positioned under the Future of Yarram initiative, here’s how the process could unfold:
- Form a Steering Committee
- Recruit respected community leaders and business owners.
- Liaise with the Future of Yarram LDS leadership team to propose a new working group focused on essential services and banking access.
- Contact Bendigo Bank’s Community Bank Division
- Initiate discussions to explore feasibility, franchise terms, and local appetite.
- Bendigo provides detailed guidance and documentation on what’s required.
- Undertake a Feasibility Study
- Assess the economic case: population served, business need, local buy-in.
- Costed by Bendigo’s team but could be grant-funded under CDF Stream 1.
- Develop Business Case and Grant Submission
- Craft a proposal aligned with the LDS priorities of economic resilience, ageing population needs, and regional independence.
- Submit a CDF Stream 2 grant under Future of Yarram umbrella to fund capital costs.
- Raise Supplementary Capital (if needed)
- Launch a public share offering to raise any remaining capital.
- Shareholding is capped to ensure no individual owns more than 10%, keeping it community controlled.
- Secure Premises and Fit-Out
- Ideally, re-use an existing premises such as the outgoing Bendigo branch.
- Engage local contractors to keep investment in the region.
- Open the Branch
- Hire local staff trained by Bendigo.
- Begin operations with full banking services, from personal banking to business accounts and loans.
- Reinvest Surplus
- Profits are split: a portion to Bendigo, but the majority retained locally for grants, infrastructure, or shareholder return.
A Realistic Timeline — And a Strategic Ask for Bendigo
Establishing a Community Bank isn’t instant. Even with state backing and strong community will, the process takes time: typically 12 to 24 months from concept to launch. Here’s a broad overview of what the journey might look like:
| Phase | Activity | Timeframe |
|---|---|---|
| 1. Initiation & Local Engagement | Form a steering committee, engage with Bendigo, align with Future of Yarram | 1–2 months |
| 2. Feasibility Study | Commission needs analysis, consult Bendigo on branch viability | 2–3 months |
| 3. Grant Submission | Develop business case and apply for CDF Stream 2 funding | 2–3 months |
| 4. Funding Approval | Await decision from DEECA | 3–6 months |
| 5. Capital Raising | Offer community shares (if additional funds are required) | 2–3 months |
| 6. Legal & Franchise Setup | Register public company, sign franchise agreement | 1–2 months |
| 7. Site & Staffing | Secure and fit out premises, hire and train staff | 2–4 months |
| 8. Launch | Community open day, media, operations begin | 1 month |
Total Estimated Timeline: 12–24 months
Given this timeframe, it is both reasonable and strategically wise for the community to request that Bendigo Bank delay—but not cancel—the planned closure of its Yarram branch. A delay of 12 months would provide:
-
A stable transition for vulnerable residents and local businesses.
-
Time for feasibility studies and funding applications.
-
Space for the town to prove it can stand behind a local ownership model.
This isn’t about fighting the closure outright—it’s about building the runway for a community-owned solution that protects long-term access to financial services.
A Community Bank is more than a service—it’s an engine for reinvestment.
Why This Aligns with Future of Yarram
- Addresses local economic fragility—especially after bank closure.
- Tackles access inequality—especially for elderly, disabled, and cash-reliant residents.
- Creates long-term revenue streams—potentially funding other projects.
- Reinforces self-determination—community-led, community-owned.
It would be hard to argue that many other streams are more vital than cash access, financial security, and economic empowerment.
What Next?
- Talk to the Future of Yarram team. Propose banking access as a critical stream in their roadmap.
- Engage your networks. Talk to businesses, farmers, retirees, and community groups who would back a community bank.
- Contact Bendigo Bank and ask for a Community Bank info pack.
- Write to your MP. Make it clear this isn’t a “nice to have”—it’s a necessity.
Why Bother?
In an age where regional services are being stripped away, Yarram has a chance to do something bold: own its future.
A Community Bank is more than a building with tellers. It’s a vote of confidence in the town’s future—and a practical tool for building local wealth, not just managing it.
