New Zealand's biggest discount department store group, The Warehouse, has announced plans to build its own financial services arm offering credit cards, insurance and layby payments.The move supersedes a joint venture The Warehouse has been building with Westpac New Zealand for more than a decade.It described the move as a "new strategic priority" as it announced the purchase of Diners Club New Zealand for NZ$3 million, including its core infrastructure, a premium card, an existing customer base and an unspecified receivables portfolio."We believe there is a significant opportunity for a business the size of The Warehouse Group to pursue our own 'captive' Financial Services business," it wrote in a presentation to analysts.The Warehouse also announced plans to raise NZ$115 million in fresh capital to fund its expansion into what it said would become a "leading New Zealand retail financial services company," with receivables of NZ$600 million within five years. It said the company would employ 50 staff and develop a debt funding strategy that was ring-fenced from The Warehouse Group's existing funding arrangements.The Warehouse has 92 'Red Shed' big box stores in New Zealand and had built up a joint venture with Westpac New Zealand offering Mastercards. The joint venture, which is 51 per cent owned by Westpac and 49 per cent owned by The Warehouse, was launched in 2001. The Warehouse said it had generated a receivables portfolio of over NZ$400 million for third parties and the joint venture.Companies Office records show the joint venture with Westpac generated net operating income of NZ$15.5 million in the year to 30 September 2013, down from NZ$15.8 million the previous year. Loans totalled NZ$65.4 million, down 4 per cent from a year ago. The Warehouse said it expected the new group to lose up to NZ$3 million in the first year and lose between nothing and NZ$3 million in the second year, before starting to contribute to group profits by 2016.