Bringing banking back to you. The first not-for-profit community bank that works for Hampshire is being created: We are in the process of obtaining regulatory authorisation.
One of a kindA community bank for Hampshire – a substantial proportion of the business of community banks consists of lending to local small and medium-sized businesses.
Lending to small and medium-sized firms in HampshireOur loans have already been creating jobs in Hampshire. City councils and universities in Hampshire have provided the capital for your Community Bank and the government has provided an initial revolving loan fund. Half of the returns go to HCB Foundation, a charity for the benefit of the people in Hampshire.
Safe & secureYour money stays in the community
Hampshire Community Bnk Ltd. is in the process of obtaining regulatory authorisation. Once it is authorised by the bank regulators, the Hampshire Community Bank will be able to accept deposits. We are, however, already lending to companies in Hampshire.
Looking ahead: What makes the Hampshire Community Bank different?
The Hampshire Community Bank will not aim at squeezing maximum profits out of you, but instead will aim to help you and small firms in Hampshire.
Local deposits will be used to fund productive and sustainable investments in Hampshire.
Unlike other banks, the Community Bank cannot be taken over.
The Hampshire Community Bank is headquartered in Hampshire and all loan decisions are made by people in Hampshire.
There are no bankers’ bonuses. The profits are returned to the people of Hampshire.
Local First Community Interest Company and the Community Bank team are currently working to obtain a full banking authorisation from the Prudential Regulatory Authority and the Financial Conduct Authority. Until we have received authorisation, we cannot accept retail deposits. However, you can support the launch of your Community Bank by getting in touch and letting us know if you would like to support this venture in any other way.
Hampshire Community Bnk has, however, already been lending to Hampshire businesses. To date, over £1.1m have been lent to small and medium-sized firms in Hampshire, across a wide range of industries. Examples include a family-owned logistics company, a firm of architects specialising in energy-efficient buildings, a manufacturer of energy preservation equipment, a family-owned estate agent, a local builder and developer, a digital media marketing company and a recycling firm. Through our loans, over 40 jobs were created in Hampshire, and well over 100 have been preserved.
By international comparison, the UK banking sector is highly concentrated, with the top five banks accounting for over 90% of deposits. Most of that money is used to fund asset and financial transactions. The problem of high concentration and lack of meaningful competition has been recognised over the past century by numerous banking commissions and official government reports, yet until now no solution had been found. The solution is to introduce a different type of banks that operate differently and are dedicated to the local community. This values-based banking proposition will support SMEs by placing emphasis on productive and sustainable lending, thereby stimulating the real economy and creating local jobs. A virtuous cycle of growth is formed when a local, small firm-focused bank offers customer-centric, relationship-based banking services, without pushy sales techniques and without a bonus culture.