THE TRANSFER of most Kent Reliance Building Society branches to agencies across the county is on course for completion in the next few weeks.

By the end of September, at least seven branches will have transferred to high street agencies, with the likelihood that three more will be switched by the end of the year.

The first to go will be Middle Row, Maidstone, and Walderslade Road, Walderslade. They both close on September 27 following a transfer to agency partner First Call Mortgage Services.

From that date, customers will have to call at new offices - First Call House, 15 - 17 King Street, Maidstone, and Sherwood House, Walderslade.

The Canterbury branch in St Peter's Street will also close on September 27, with the transfer - along with Gravesend, Strood, Herne Bay, and Whitstable branches - to John Bishop and Associates.

Branches in Gravesend, Strood, Herne Bay and Whitstable will also transfer to John Bishop but remain in the same premises.

The future of branches in Chatham, Gillingham and Rainham has yet to be decided. The branch in the Hempstead Valley shopping centre will remain with Kent Reliance.

Branch staff are transferring to new employers with preserved pension and other rights. Thirty-two employees are moving, while 11 - mostly long-serving staff - are taking voluntary redundancy. A further 19 staff are employed in the three Medway branches whose future is still under discussion.

The Chatham-based mutual, the fastest-growing building society in the UK, claims the transfer arrangement is an innovative move that has already aroused great interest in the finance industry as a whole. It believes that growth can only be maintained if costs are kept under tight control.

The society claimed its branch network was losing money because only a minority of savers and borrowers used branches for transactions. It said it was wrong for those who did not use branches to subsidise those who did. The society expects to save at least half a million pounds a year from the transfer deal.

In a letter to Maidstone and Walderslade customers, Rob Procter, deputy chief executive, sought to reassure customers, saying the society had successfully operated agencies for some time, including Faversham and Ashford.

He said: "Both offices have continued to thrive, members who use these agencies continue to receive excellent service and business levels have increased - good news for all our customers.

"I am confident this will be repeated in Maidstone and Walderslade and have no doubt that you will welcome and enjoy the improved facilities."

Kent Reliance's cost-reduction strategy has also led to a switch of back office jobs from Chatham, the society's headquarters, to India, and the creation of a small call centre in Bangalore.

Mike Lazenby, chief executive, said: "Kent Reliance has demonstrated to members that we are in good shape to face the future.

"By making these improvements, our members will benefit from continued access to a first rate service and excellent product value.

"Our existing staff are highly professional and experienced and we are delighted that so many have elected to transfer to the agencies."