QT Mutual Bank members have voted in favour of a merger with RACQ Group, in a move that will create a Queensland-based financial services mutual with 1.6 million members and A$3.9 billion of assets.In an online and postal ballot that closed last Friday, 38.7 per cent of QT Mutual members voted, with 90.4 per cent of votes cast in favour of the merger.Members will be required to vote again. They will meet in November to approve a scheme of arrangement and changes to the QT Mutual constitution.QT Mutual chief executive Steve Targett said the cumbersome approval process was in the bank's constitution as a defensive mechanism. Proxies will be allowed for the second meeting and there is no requirement for a minimum proportion of members to vote. Under the terms of the merger QT Mutual will become a banking subsidiary of RACQ, which is a provider of motoring and related services and insurance.RACQ has 1.5 million members and QT Mutual 60,000. RACQ wants to move into banking and QT Mutual wants scale so that it can invest in banking services.QT mutual will retain its staff and branches. Targett will report to RACQ chief executive Ian Gillespie.QT Mutual members will receive RACQ membership and will gain access to RACQ member benefits (with years of QT Mutual membership counted as RACQ "loyalty years").QT Mutual members' existing rights to reserves will be preserved for a period of seven years by the issue of a legacy share. The equity amount per QT Mutual share was $1865 at June 30 last year.The legacy share entitles QT Mutual members, for a period of seven years following the merger, to receive a share of the accumulated member funds if RACQ is demutualised or if QT Mutual becomes insolvent, is wound up or is sold.Targett said the period of seven years was chosen because it is the average period of membership.