Westpac has moved its BT business into a new division called Australian Financial Services (AFS).

This division will now include the bank’s retail and business banking, St George, BankSA, Bank of Melbourne and RAMS.

It will be headed up by Royal Bank of Scotland CEO UK Retail Brian Hartzer, who will join the company in the middle of next year. Before joining RBS in 2009, he was ANZ’s CEO Australia covering the bank’s domestic and commercial banking as well as wealth management operations for the Asia-Pacific region.

Westpac Group Executive Transformation and Productivity Peter Hanlon will be acting CEO. Westpac Group Executive Product and Operations Peter Clare will become COO for AFS.

One causality from the changes has been Westpac Group Executive Retail and Business Banking Rob Coombe, who has resigned.

Westpac CEO Gail Kelly says the inclusion of BT as a part of AFS will build on the cross-selling opportunities in the banking businesses.