Partnering with Rural Bank.

Transcription

1 Partnering with Rural Bank.

2 to provide exceptional financial services, knowledge leadership and for Australian farmers to grow

3 The Rural Strategy Our Environment Our Business Levers Our Vision Our Targets Our Focus

4 Environment There are 85,681 commercial farm businesses* who manage nearly 50% of Australian land, employ nearly 322,000 people The average Australian farm manager is a 56 year old male who has been farming for 35 years 1 and produced enough food to feed 60m people, that s the combined population of Australia & Canada 2 * Defined in 15/16 census as > $40k EVAO Farmers are investing for the future and looking for growth opportunities Scaling back 28% Consolidating 7% 26% Going for growth 39% Investing for the future Australian farmland value has grown 6.4% on average annually over the last 20 years 3 National net farm Income has tripled from $6bn in to $18bn in Gross production value of agriculture has reached an all time high of $56b 1 Agriculture contribution to GDP is up 0.2% in to 2.2% In Source: Agricultural Census, ABS Outlook Conference, ABARES Australian Farmland Values, Rural Bank Australian-Industry-Report, Office of the Chief Economist Australian agricultural exports, DFAT st Century Farmers Report, 2017, RAI and rural Bank

5 Environment While the future for agriculture is bright, there are challenges Agri-finance Low lending growth environment Heightened levels of competitor activity who are looking to agri to bolster growth projections Historically low interest rate environment Meeting customer demands for innovation and technology Access to capital Changing regulatory environment Agribusiness Evolving markets, international demand patterns and ongoing access to trading partners Farm consolidation and generational change in ownership of farms Foreign investment increase and changing source of funds Impacts of climate change, drought and unpredictable weather patterns (floods, fire etc.) Succession planning Changing regulatory environment

6 the family corporate farmer health marketing risk production risk human capital debt and equity

7 Grow our business sustainably in our target markets (family corporate segment) via the Bendigo Community Bank branch & Corporate branch network. Reach 70% of our referrals for new to bank business to come from the Bendigo Bank Branch network (remaining 30% coming from traditional sources). Continue growth in commissions 1.5 times system.

8 Increased referrals from the branch network: Greater cross sell opportunities across our channels. Increased opportunity for further asset & liability growth in RB. Increased commissions to Community Bank branches. Fully satisfy customer needs. Increased brand awareness for Rural Banker. Opportunity to share the Community Bank model story to farming customers.

9 Rural Bank Working Together Working together All have a role to play to in partnership The Board Branch staff

10 What Rural Bank is doing: Established geographical areas that contain an Agri opportunity in our target markets (utilising Neil Clarke and specialist knowledge). Agri Relationship Managers allocated to local branches (BEN RM s being consulted on this) there are Agri Specialists available to support your branch. Developed Go to Market Plans for their location. Rolling out GTM plans with allocated branches and if opportunity of branch accreditation, aligning plans for effort and investment to grow agri portfolio.

11 Go to Market plans: Branch Network: Rural Bank plans include: Financial Acquisition Values Customer Experience Compliance People Attending branch meetings each ¼ Board meeting at least once a year Go to Market plan Aligned plans (business and marketing) Provide coaching and tools (ie. RB Fridays, branch education pack) Help branch develop active prospect list Timely feedback on referrals (and use of LINX) Joint farm visits Invite branch staff to industry events (field days, farm walks etc.) Joint functions NII Branch Network

12 Role of the Branch: Develop and grow an active prospect list of farmers and farm businesses. Identify key influencers in local community (i.e. accountants etc.). Receive and engage with Rural Bank Agri Relationship Managers on feedback on referrals. Joint customer visits with ARMs. Agri farmer functions (to be organised jointly in line with BEN strategy of growth). Use LINX to track referrals. Consider the easy conversation starters i.e. Agri Insurance.

13 Role of the Board: Consideration of Rural as part of the conversation and plans. Align your plans with rural (consider your regional and rural clusters). Promote the Rural Bank profile in your community. Leverage the Rural specialist resources available insights and knowledge Bring your local agri specialist to the table when considering business growth opportunities (invite ARM or RMA to board meeting at least once a year). Consider how you can influence pipeline opportunities (prospects for joint benefit). Contribute to identifying key business influencers in local community and agri prospects (support the branch on this as well). Support staff to attend joint events and farm visits. Consider branch accreditation.

14 Activity: Board Members: Influencers and prospects Q1: How can you elevate the Rural Bank profile in your community? Q2: How could you identify key agri influencers or agri prospects in your local community? Q3: What do you need from Rural Bank to help you have conversations in your community to promote the Rural Bank proposition?

15 Questions?