Sir Richard Branson and Virgin Money Australia CEO Greg Boyle were in Sydney for the home loans launch. Picture: Craig Greenhill

The business, a Bank of Queensland subsidiary, will be aiming to avoid problems that Virgin Money encountered in the Australian market before it became part of BoQ’s stable.

Virgin already offers credit cards, insurance and superannuation, and has now started offering home loans through mortgage brokers.

Virgin Money Australia chief executive Greg Boyle said providing home loans directly to customers through digital channels was also planned.

“We don’t have branches and that will remain the case,” he said. “However, home loans ... fall into a different category — consumers do value a face-to-face proposition which is why we’re partnering with brokers.

“Deposits and broader home loan products are on the road map in the near term.”

Bank of Queensland bought Virgin Money Australia in 2013, paying $10 million in cash and $30 million in scrip to the Virgin Group. Virgin also received undisclosed royalties and a board spot at BoQ.

Virgin Money Australia CEO Greg Boyle AT THE Virgin Money launch. Picture: Craig GreenhillSource:News Corp Australia

But BoQ on Friday confirmed Virgin had sold down its whole stake once a 12 month escrow period had finished. Virgin’s representative on BoQ’s board, Neil Berkett, also announced his resignation on Friday — no reason was given other than it being the end of his three year term.

“We are currently in discussions with Virgin ... (which) has the discretion to put forward a nominated director. All nominees will subject to clearing BOQ’s fit and proper process,” a BoQ spokeswoman said. Attempts to obtain comment from Virgin were XX.

Virgin Money first stated in Australia in 2003 and was relaunched in 2009, but lost $5 million in 2011 and $9.2 million in 2012 as it tried expanding.

Virgin Founder Sir Richard Branson started Virgin Money in Britain 30 years ago after discovering the hidden charges that bankers pocketed.

“It’s been a tremendous success in the UK — the main challenger bank in the UK,” Mr Branson said.

“The mortgages there have worked really well. Learning from that and asking lots of questions in Australia, the team have launched this product in Australia.”

Virgin Money Australia’s new home loan offers Velocity frequent flyer reward points to customers on an ongoing basis. It joins National Australia Bank, which started offering reward points for home loans late last year, but Mr Boyle said Virgin’s proposition was different.

“The key point is that it’s an enduring component of our product, not a one-off marketing campaign, which is why we offer points upfront, points on a monthly basis and points on anniversaries.

“We did a lot of customer research and the feedback was that the customers do feel very undervalued in their relationships.

“Customer feedback is very clear. They want Virgin to be a major player in this space, and if we can replicate the success of the Virgin Money UK business, which continues to significantly outgrow market, then it’s an exciting time for the Virgin Money business.”