What Is a Not For Profit Bank And How Does a Cooperative Bank Work

When we asked people what a not for profit bank cooperative bank is, most were unsure. Some assumed it cannot exist because “banks have to make profit”.

The confusion is understandable. The phrase sounds contradictory. So let’s explain it simply.

What Is a Cooperative Bank

Let’s start with being a cooperative bank. It’s is an organisation owned by the people who use it. Not investors. Not distant shareholders. The customers are the owners.

Each member has a voice. The purpose of the organisation is to serve those members, not to extract value from them.

That is the foundation of cooperative banking. Ownership and usage sit in the same place. The people who save and borrow are the same people who ultimately benefit from the bank’s success.

WessexBank is a member owned cooperative bank. That structure shapes everything we do.

What Does Not For Profit Mean in Coopertaive Banking

A not for profit bank still needs to be financially strong. It still needs to cover costs, manage risk carefully and build reserves. When it performs well, it generates a surplus.

The difference is what that surplus is for. In a traditional shareholder model, profit is distributed to investors. In a not for profit bank, surplus is reinvested for the benefit of members and the community.

At WessexBank, surplus is not a reward for outside investors. It is a resource. It strengthens the bank so it remains safe and resilient. It improves services for members. And through the WessexBank Foundation, it supports grants and local initiatives that create real impact in our communities.

Not for profit banking does not mean we do not make money. It means money has a purpose.

How WessexBank Puts Cooperative, Ethical Banking Into Practice

Our structure shapes our philosophy.

• We exist to build financial wellbeing, not dependency.

• We lend to help people move forward, not trap them in cycles.

• We encourage saving alongside borrowing so members finish stronger than they started.

• We treat money as something that should circulate locally and constructively.

This is what community banking looks like in practice. Financial strength combined with social responsibility. Commercial discipline combined with member ownership.

Because we are a cooperative bank, success is shared. The people who save with us, borrow from us and support us are the same people who own the institution.

Being cooperative is about alignment.

Being not for profit is about intention. Profit is not the destination. It is the fuel that allows us to remain strong and to give back.

Why Cooperative and Not For Profit Banking Matters

Banking influences everyday life. It shapes opportunity, resilience and confidence. It affects whether people can manage unexpected costs, build savings and plan for the future.

When a bank is structured around member ownership and community benefit, its decisions naturally lean toward long term stability and shared value.

That is why cooperative banking and not for profit banking matter in the UK today. They offer an alternative model. One rooted in strength, accountability and purpose.

WessexBank is not trying to be the biggest bank. We are trying to be the right kind of bank. Financially strong. Ethically grounded. Community rooted.

That is what cooperative, member owned, not for profit banking really means.