HBOS ups the stakes in Australia

HBOS has stepped up its aggressive expansion of BankWest, the Australian lender it bought last year.

In a major restructuring, BankWest is to merge many retail areas with its online division, significantly boosting the position of Dave Hunt.

Seconded from HBOS to launch the internet and telephone-based service that the bank hopes will help it become a serious rival to Australia's 'big four', he will be responsible for all retail products.

HBOS bought out BankWest's minority local shareholders last year and signalled a nationwide push after research found 44% of customers had little or no loyalty to their current bank.

BankWest has 4% of the market while National, ANZ, Westpac and Commonwealth control 80%.

Head of retail banking Chris Whitehead said the changes, in which two existing executives will go, were purely structural.

'It's about really trying to create more simplicity in our organisation ... and really position us for much more growth,' he said.

But the interest created by Hunt's online division, is thought to have convinced the bank its strategy is right.

BankWest is also boosting its business banking division and is on a major recruitment drive in the eastern state of Victoria.

The sector is growing rapidly but, according to BankWest research, many small businesses are dissatisfied with service at their current bank.