The RACQ is set to become a new player in banking, with a proposed merger with QT Mutual Bank expected to be completed by the third quarter of 2016.
The proposed merger would create a banking subsidiary within the RACQ Group, which along with the automobile club also included services, such as insurance.
The combined assets of the merged entity would be $3.9 billion and it would have about 1.6 million members.
QT Mutual chief executive Steve Targett said the merger would require a vote of at least 25 per cent of its members, of which 75 per cent would have to vote in the affirmative.
There would be no requirement for a vote of RACQ members.
Mr Targett said he was confident it would pass and saw the merger as an opportunity for otherwise unlikely growth.
"The beauty for us is we've got 10 of our 14 branches in and around Brisbane, so (the merger) will give us the ability to expand into regional centres and regional Queensland," he said.
RACQ Group chief executive Ian Gillespie said the new bank would have a big reach from day one, with RACQ having about 100 outlets across the state.
"One of the great advantages we have is that we are everywhere," he said.
Mr Gillespie said there was "no overlap" in the merger, so there would be no job losses.
"In fact, what we hope to do is create jobs over time rather than seeing shrinkage," he said.
Mr Gillespie said while the name of the new banking entity had not yet been decided, it would "certainly be under the RACQ banner".
Mr Gillespie said the RACQ-QT Mutual merger would offer a "real alternative" to the current banking model as it would be focused on delivering value to its members and not maximising profits for shareholders.
With the federal opposition pushing for a royal commission into the banking industry, Mr Gillespie said RACQ-QT Mutual would put trust back into the banking sector.
But he stopped short of endorsing the prospect of a royal commission.
"That's a matter for the government to decide, but clearly there are issues out there that the community is concerned about," Mr Gillespie said.
The RACQ chief acknowledged it faced an uphill battle competing with the big four banks, which commanded about 78 per cent of the Australian market.
"We believe we can be a viable alternative based on scale," Mr Gillespie said.
"Up until now, the mutual sector's lacked scale and reach, but one of the things RACQ has is exactly that, with a relationship with nearly 1.6 million Queenslanders already and access to over 60 per cent of households.
"We believe we've really got a significant point of difference, combined with the capabilities QT Mutual Bank brings and the resources and distribution network RACQ has.
"So it will be a game-changer."
Mr Gillespie said the merger with QT Mutual was "modest first step" in its long-term plan, but the RACQ did not harbour ambitions to make the big four banks the big five.
"That's probably a bit too ambitious, but we're not going to put a limit on what we can do," he said.
"The reality is, we do have a very large membership base. Our membership is 1.6 million and if you look at the automobile clubs across Australia, it's collectively 8 million members.
"So that's a substantial member base in which we can sell."
Mr Targett said there was a "bit of a buzz" around QT Mutual as staff were informed of the merger during four information sessions held on Monday morning.
"They definitely liked going towards a brand like RACQ," he said.
"They see the deal as being transformational and to work for a bigger organisation but still operate with mutual values and give back to members, they see as a real positive."
QT Mutual formerly traded as the Queensland Teachers' Credit Union.
