Westpac Shutters RAMS: Streamlining for the Future

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Westpac confirmed in an Australian Securities Exchange statement that it would cease new home loan applications through RAMS, effective immediately. The decision follows a comprehensive “strategic review” aimed at simplifying Westpac's overall business model.

"We have accomplished significant portfolio simplification over recent years. After a thorough evaluation, it became clear that continuing to offer home loans through RAMS franchisees does not align with Westpac's future direction," stated Damien MacRae, Westpac's managing director for mortgages.

The bank has assured customers that current RAMS home loan holders will not see their services interrupted. Existing loans remain intact, and customers can still access support via the RAMS app, website, and call centers. Westpac also indicated proactive communication with these customers regarding any mortgage applications already in progress.

To mitigate the effects on franchisees and employees, MacRae mentioned, "We are offering mutually agreed support for franchisees and ensuring there are ongoing opportunities within Westpac for RAMS employees."

Westpac has decided to retain RAMS' existing loan portfolio, which is valued at approximately $31.8 billion, implying a significant ongoing commitment to the legacy customers of the subsidiary.

In response to similar moves by prominent banks, such as ANZ facing a significant $14bn bond scandal earlier this year, Westpac’s decision comes at a time of heightened scrutiny and industry-wide changes. As financial institutions refine their operational models, the second-order effects on employees and smaller franchisees become tangible.

Founded in 1991, RAMS had grown into one of Australia’s leading non-bank home loan providers before its acquisition by Westpac in 2008 for $140 million. This year, an attempt to sell RAMS was aborted due to unsatisfactory bids, illustrating the complex challenges in divesting a business line during turbulent economic times.

Additionally, RAMS franchisees have initiated a class-action lawsuit via Morris Mennilli Lawyers, due to the termination of franchise agreements. While Westpac remains poised to defend this lawsuit, the full scale and implications of this legal battle remain to be seen.

The Australian Securities and Investments Commission (ASIC) along with the Australian Prudential Regulation Authority (APRA) are reportedly investigating RAMS' practices, further complicating the landscape for all parties involved.

For more insights on the evolving narrative surrounding this subject, you can refer to the original article published by Duncan Evans for NewsWire. Keep tabs on the latest developments in the banking sector by subscribing to our updates.

Published:Thursday, 8th Aug 2024
Author: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Surge in Investor Lending Triggers Regulatory Response

14 Mar 2026: Paige Estritori

In the third quarter of 2025, investor lending in Australia reached a record-breaking $72 billion, marking a 12% increase from the previous quarter. This surge has prompted the Australian Prudential Regulation Authority (APRA) to implement new measures to mitigate potential risks associated with high levels of investor borrowing. - read more

APRA's New Debt-to-Income Cap: What Borrowers Need to Know

14 Mar 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective 1 February 2026, APRA will implement a cap on high debt-to-income (DTI) home loans, limiting banks to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more

NAB Continues to Dominate Australia's Expanding Business Lending Market

06 Mar 2026: Paige Estritori

The Australian business lending landscape has witnessed significant growth, with the total lending to non-financial businesses reaching $1.2 trillion as of January 2026. This marks a 9.3% increase over the year and a substantial 53.9% rise compared to January 2020, according to the Australian Prudential Regulation Authority (APRA). - read more

Westpac's Bold Move: Prioritising Business Lending in New Strategy

06 Mar 2026: Paige Estritori

In a significant transformation, Westpac Banking Corporation is undertaking a strategic shift to bolster its presence in Australia's business lending sector. The bank plans to replace traditional in-branch tellers with dedicated bankers specialising in home and business lending. This move is part of a broader initiative to enhance customer service and streamline operations. - read more

The Rise of Non-Bank Lenders in Australia's SME Financing Landscape

06 Mar 2026: Paige Estritori

The Australian small and medium-sized enterprise (SME) sector is experiencing a notable shift in financing preferences, with non-bank lenders gaining significant traction. This trend is driven by SMEs seeking more flexible and accessible funding options to support their growth ambitions. - read more

Click for more Finance News