(22 June 2009 – Australia) Westpac owned RAMS has announced that it will double its franchise distribution network on the back of strong business growth.RAMS plans to double its franchise distribution network within the next couple of years, in order to cater for increased demand among its target market; first home buyers, self-employed people and property investors.
RAMS chief executive, Melos Sulicich said that despite the challenging market conditions, RAMS has grown its customer base to more than 15,000 and is performing well beyond original targets set when it was acquired by Westpac in January 2008.
In the past three months, home loan settlements have reached the highest amount in the provider’s 14-year history, with last month achieving the biggest settlement month ever experienced by the RAMS franchise distribution channel, Sulicich said.
Sulicich put the growth partly to being owned by Westpac. He said that it provides the opportunity for RAMS to reassure those customers who are concerned about security while playing to its strengths as an alternative, specialist lender, providing choice to customers.
From a corporate perspective, being supported by Australia’s largest bank, Westpac helps RAMS gain some scale by tapping into resources that suit its needs such as supplier relationships. RAMS now has access to greater purchasing power, he said.
Sulicich also said RAMS recently improved its franchise distribution model, which had remained unchanged since the inception of its franchise business more than six years ago.
The new, more flexible model has a more competitive, performance-based commission structure and improved scalability, he added.
Overall, a new franchise model, an expanded product range and clearer direction has brought greater stability to the RAMS franchise network and business, Sulicich concluded.