Kent Reliance Building Society is expanding its branch network across the south as part of its transformation into a bank.

Financial watchdogs are expected to give the go-ahead to the Chatham mutual's plan to close the society and replace it with a new hybrid organization.

It is set to split into two - OneSavingsBank Plc - part-owned by the J C Flowers private equity investment firm - and a new mutual Kent Reliance Provident Society.

Society chiefs said before narrowly winning a members' vote that the change would hearld more branches.

Today, it announced that six former Halifax agencies and one ex-Nationwide branch are to open under a new banner early next month. (Feb) The new agencies will be in Honiton (Devon), Plymstock (Plymouth), Crewkerne (Somerset), Thornbury and Brislington (Bristol), Kingsbridge (Devon) and Littlehampton (West Sussex).

Chief executive Mike Lazenby said: “We are absolutely delighted to have secured these particular agencies, which form part of our wider expansion programme. Our mission is to provide customers with affordable, competitive and efficient banking services and treating them fairly at all times - whether they choose traditional High Street based forms of banking or whether they deal with us directly.

"Although other banks and building societies are actively closing branches and agencies there will always be people who want access to financial services on the High Street, we just have to be sure they are in the right places and will be well used when they are open."

Kent Reliance Building Society will transfer its business, assets and liabilities to OneSavings from February 1. It will trade under the names Kent Reliance, Kent Reliance Banking Services or krbs. The organisation will continue to sponsor Charlton Athletic Football Club.