RAMS Home Loans coming to South Australia. (l-r) Clive Kirkpatrick (Head of Franchise), Cheryl Haywood (Principal) and Melos Sulicich (Chief Executive) in Waymouth Street. Pic: Tricia Watkinson. Source: The Advertiser
RAMS Home Loans are opening their first SA franchise with their first sole female business partner.
Chief executive Melos Sulicich said the Westpac-owned mortgage provider had yet to enter the Tasmanian market but the firm's presence in the southern suburbs was an ideal ground for its target demographics.
"Ultimately we want to have four or five franchises in SA, but it was important for us to have our first in an area that was demographically suited to RAMS,'' he said.
"Our focus is particularly on first home-buyers, first time investors and the self-employed.
"And that is why franchising suits us. They are good at working in their own market and they can do what suits them best.
"Where we have got more first homebuyers they can work with people in their community to help first homebuyers. Where they have people who want to invest for the first time, we can focus on that.''
Mr Sulicich said Southern Vales principal Cheryl Haywood would not be starting fresh but would take on management of 3500 existing South Australian RAMS loans that originated through brokers or interstate offices.
"For the last couple of years we have been looking for a franchisor in SA and it has taken us that long to get the right person,'' he said.
The company is estimating it can build its national turnover to $200 million or about 2.5 per cent market share within the next five years.
It has already opened 10 new franchises around the country this year and intends to open in Adelaide's eastern suburbs, Salisbury, central Adelaide and western suburbs as appropriate franchisees appear.
Ms Haywood said decisions by the big four to increase rates beyond official Reserve Bank rate hikes had created a competitive environment that RAMS could benefit from.
"There is definitely a lot of competition out there and with the hikes people are now looking for an alternative,'' she said.
Mr Sulicich also foreshadowed a broadening of RAMS mortgage offerings that would target the firm's existing customer base.
"There will be further products and we will continue to look at the first homebuyer market for products,'' he said.
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