Westpac group executive retail and business banking, Pater Hanlon, said the bank's latest customer service initiative - putting managers with real authority back in the branches - is the real deal and not marketing spin.Under the "Westpac Local" banner the bank has upgraded the authority and seniority of branch managers (whom it distinguishes by calling bank managers). The bank launched a pilot program in March when it appointed the first of the new managers to a Queensland branch.Hanlon said 60 per cent of branches now have upgraded managers and all branches will have them by March next year.Hanlon said:  "Under our old centralised model the branches were transaction shops. Our advice to a branch manager when dealing with a customer over a loan application or a problem with an account was to get the customer on the phone to someone with authority."Now our bank managers have the authority to make their own call on customer complaints. They have the authority to waive an exception fee, for example."When it comes to loan applications, Hanlon said all applications go through an automated system that classifies them as "yes", "no" or "maybe". "The maybes go to a credit officer who will need to do some more work on the application. Under the old system credit officers were in a centralised team."Now we are giving the managers the option of being accredited as credit officers. They can choose to handle the maybes themselves. They will also be accountable for the bad loans."Managers' loan approval limits will vary depending on the experience of the manager and accreditation, but standard limits will be around average home loan and small business loan amounts.Bank managers will hire their own branch staff. Hanlon said that under the old system hiring was a central function and the first time managers saw new staff was when they turned up for their first day at work.He said this system was not efficient and resulted in attrition rates of 40 to 50 per cent in the first year of employment in a branch.Each branch will be treated as a small business with its own profit and loss account. Under the old system branch performance was based on transaction volumes and customer service metrics.Managers will be remunerated on the branch's bottom line, customer service scores and staff engagement.Hanlon said: "Part of the Westpac Local strategy is to turn the branches into small businesses operating in their communities. We want the managers to think of themselves as members of the local business community."The seniority of the position has been raised considerably. Hanlon said some of the hirings include private bankers, financial planners, commercial bankers and regional managers from other organisations.