Anyloan Australia :: News
SHARE

Share this news item!

Westpac Shutters RAMS: Streamlining for the Future

Westpac Shutters RAMS: Streamlining for the Future

Westpac Shutters RAMS: Streamlining for the Future?w=400

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.

In a strategic pivot to enhance operational efficiency, Westpac has announced the closure of its home loan lending subsidiary, RAMS Financial, a move that aims to streamline the banking giant's operations.

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
Source: Paige Estritori

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

Share this news item:

Finance News

Australian Stock Market Achieves New Milestone with ASX 200 Record High
Australian Stock Market Achieves New Milestone with ASX 200 Record High
26 Feb 2026: Paige Estritori
The Australian Securities Exchange (ASX) 200 has reached a historic milestone, closing at a record high of 9,128 points. This remarkable achievement was primarily driven by robust performances in the consumer non-cyclicals and materials sectors. - read more
Reserve Bank of Australia Lifts Cash Rate to 3.85% to Combat Inflation
Reserve Bank of Australia Lifts Cash Rate to 3.85% to Combat Inflation
26 Feb 2026: Paige Estritori
The Reserve Bank of Australia (RBA) has announced a 25 basis point increase in the cash rate, bringing it to 3.85%. This decision reflects the central bank's commitment to addressing persistent inflationary pressures within the Australian economy. - read more
ANZ CFO Summit 2026: Navigating AI's Role in Finance Leadership
ANZ CFO Summit 2026: Navigating AI's Role in Finance Leadership
26 Feb 2026: Paige Estritori
The ANZ CFO Summit 2026 is set to convene nearly 2,000 finance leaders from Australia and New Zealand to explore the transformative impact of artificial intelligence (AI) on the finance sector. Scheduled for March 3, 2026, this virtual event aims to equip finance professionals with the tools and insights needed to navigate the evolving landscape of finance leadership. - read more
Reserve Bank of Australia Lifts Cash Rate to 3.85% to Combat Inflation
Reserve Bank of Australia Lifts Cash Rate to 3.85% to Combat Inflation
18 Feb 2026: Paige Estritori
The Reserve Bank of Australia (RBA) has announced an increase in the cash rate by 25 basis points, bringing it to 3.85%. This decision, made during the February 2026 meeting, aims to address the persistent inflationary pressures affecting the Australian economy. - read more
NAB Anticipates Dual RBA Rate Increases in 2026 to Address Inflation
NAB Anticipates Dual RBA Rate Increases in 2026 to Address Inflation
18 Feb 2026: Paige Estritori
National Australia Bank (NAB) has revised its economic outlook, now forecasting two interest rate hikes by the Reserve Bank of Australia (RBA) in 2026. This adjustment reflects concerns over persistent inflationary pressures within the Australian economy. - read more


Finance Articles

Common Mistakes to Avoid When Assessing Loan Eligibility
Common Mistakes to Avoid When Assessing Loan Eligibility
Securing a loan can be pivotal for turning your aspirations into reality, whether it's buying your first home or funding a new business venture. Understanding loan eligibility is crucial in this process, as it determines the feasibility of receiving the necessary funds. It's not just about meeting the lender's criteria but also about ensuring that you are genuinely prepared to manage the financial commitment. - read more
Step-by-Step Guide to Navigating the Loan Application Process
Step-by-Step Guide to Navigating the Loan Application Process
Welcome to our step-by-step guide to navigating the loan application process! Whether you're seeking a home loan, personal loan, or business loan, the journey can seem overwhelming. - read more
Breaking Bad Budgets: Positive Money Moves to Make Today
Breaking Bad Budgets: Positive Money Moves to Make Today
Financial wellbeing is often a balancing act that many Australians find challenging. In an age where the cost of living seems to climb incessantly, managing money effectively has never been more critical. Yet, despite the importance of financial literacy, many individuals struggle to break free from the cycle of poor budgeting and erratic spending habits. - read more
Mastering Money: Strategies to Boost Your Financial Health
Mastering Money: Strategies to Boost Your Financial Health
Financial health is a crucial aspect of overall well-being, particularly in the ever-evolving economic landscape of Australia. The capacity to manage personal finances effectively not only provides a sense of security but also opens doors to opportunities that might otherwise be out of reach. As such, mastering the art of money management is an indispensable skill for Australians from all walks of life. - read more
Smart Saving for Big Purchases: Training Your Dollars to Work Harder
Smart Saving for Big Purchases: Training Your Dollars to Work Harder
With the rising costs of living and the all-too-familiar financial hurdles, saving for large purchases can seem like a daunting task for many Australians. From buying a new car to securing the deposit on a home, significant expenses require a level of financial commitment and foresight that goes beyond everyday spending. - read more


Need Help Finding a Loan?
Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check!
Loan Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Bridging Finance:
A short-term loan that covers a financial shortfall during time between the purchase of a new property and the sale of an old property.


Quick Links: | Personal And Business Loans Australia | Business Loan Options | Personal Loans Australia | Leasing Finance Solutions | Finance Brokers Australia | Unsecured Business Loans | Vehicle And Equipment Finance | Compare Finance Quotes | Quick Loan Approval | Low Interest Loans | Flexible Loan Terms