Queensland's peak motoring body plans to diversify into banking and home loans.
The RACQ on Monday announced it plans to merge with QT Mutual Bank to create a customer-owned bank as an alternative to the big four banks.
"We want to be a trusted alternative to the shareholder-owned, profit-driven banks," RACQ chief executive Ian Gillespie said.
"We'll be committed to offering members honest, easy and great value banking products and services, without any hidden fees or excessive charges."
He said the RACQ's more than 1.5 million members and strong brand, combined with QT Mutual's bank services and experience would provide a highly-scaleable customer-owned bank.
QT Mutual Bank chief executive Steve Targett said the proposed merger meant there'd be more products available to customers.
"This really is a case of one plus one equals three, and a far better option than an in-sector merger with another bank or credit union," Mr Targett said.
It's expected QT Mutual Bank members will vote on the proposed merger in the middle of the year.
The RACQ, founded in 1905, already offers car, home and travel insurance as well as roadside assistance.
