Running a bank branch is 'hard work'

Running a bank branch on one per cent of turnover is "hard work", according to Mr Peter Mote.

This is particular so during the start-up phase, he said.

Mr Mote served for two years as the founding treasurer of Ettalong Beach Financial Services, the franchisee of the Ettalong Bendigo Bank branch.

The bank branch was "a two per cent business and one per cent of that has to be paid to the Bendigo Bank in fees", he said.

"So the franchisee has to run the business out of the remaining one per cent, which is hard work."

Mr Mote said he believed the branch was under-capitalised when it started.

He said: "They did not get as much shareholder or depositor support from the community as the initial market research said that they would.

"Bendigo (Bank) said they still had enough but, with hindsight, it wasn't."

This required the branch to borrow more working capital from Bendigo Bank headquarters, he said.

Mr Mote said it should be remembered why the branch was started in the first place.

"A group of concerned people got together to help provide Ettalong Beach with a bank after the big banks pulled out, leaving the village with no bank.

"Towns that are left in this position die, as people tend to shop where they bank.

"Many shareholders, like me, didn't expect to make great returns on our investments in the short term but saw it as a community project.

"The losses are what happens with start-up companies.

"The shareholders funds are used to provide working capital to start the business by providing the rocket fuel to gain customers, pay staff, supply premises and all the over heads that go to make a business possible.

"Mr Michael Gage and his board are doing a good job, and have reported a profit for the first six months of the current fiscal year.

"None of the directors are paid.

"They were and are good-hearted people giving up their time to serve the local community.

"I am confident that the company will go from strength to strength.

"Bank Manager Mr Peter McKeon and his team are first rate.

"The bank's teller team are a real asset, with charm, talent and an interest in their customers that is the envy of the big four."

Media statement, 26 May 2011 Peter Mote, Peter Mote and Associates