The 18-month-old Burnley-based bank commonly known as the Bank of Dave has made profit of £20,000 which will be donated to charity, its founder and manager David Fishwick announced this morning.

The Bank of Dave currently supports eight local and national charities including the East Lancashire Food Bank, the British Red Cross and Parkinson's UK.

Under the official title of Burnley Savings and Loans the bank was set up in September 2011 with an innovative peer-to-peer lending system for local businesses offering loans of up to £7,500. Speaking on Radio 5 Live this morning Fishwick says the bank is a return to the old system of banking where the bank manager “looks you in the eye” to tell if you will be able to pay a loan back. Credit scoring is not used, every loan application is manually underwritten. He added that by making judgements in this way, the bank brings social responsibility back into the banking sector and to its borrowers: “We tell them that if you don't pay the money back then that stops some other business receiving funding,” said Fishwick.

Fishwick's appearance on Radio 5 Live this morning comes ahead of a Channel 4 documentary investigating the bank's success where other banks are announcing losses. Fishwick says it's doing this while delivering a “genuine personal service” to its customers. The small bank “does not do bonuses” and offers rates for savers and lenders that compete with high street banks. The bank currently only operates in the Lancashire area.

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