Westpac will convert some of its existing branches to franchise operations, using the purchase of RAMS' network of 92 home loan centres operated by 53 franchisees to flesh out its plans.

Chief executive David Morgan said franchising was an emerging trend in financial services, and the bank had already deployed the model in its advisory dealership Magnitude - part of the BT wealth management operations.

Dr Morgan said Westpac would move quickly in the first quarter of next year to bring RAMS into the Westpac umbrella and then consider options for its own network.

He said it was not possible to say how long it would take before the first branch was converted.

"But with this (acquisition), it will happen a lot quicker," he told The Australian.

Aside from its 1655 automatic teller machines, Westpac's distribution network includes 639 branches around the country, as well as 182 in-store branches, 101 business banking centres and four advisory centres.

Dr Morgan said the network had been built up over 190 years and its points of presence were different from, and therefore quite complementary with, those of RAMS.

Many of the RAMS stores, he said, were located well away from Westpac's branches and in newer growth areas.

In an earlier conference call, the Westpac chief said franchising was a business model that had "increasing appeal for high-productivity sales people".

The bank had seen this with Magnitude, which now offered an attractive career option in the wealth business.
With the acquisition of the RAMS brand and distribution network, the same opportunity would "definitely" be offered to Westpac staff.

Bank of Queensland, with former senior Westpac retail bank executive David Liddy at the helm, has adopted a franchising model for its aggressive interstate expansion.

In its home market of Queensland it has also converted some of its proprietary branches to franchises.

While Mr Liddy has proclaimed the model an outstanding success, there have been pockets of unhappiness, mainly in metropolitan Sydney where competition in the home-lending market is intense and housing prices have been flat.
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