Natwest to launch Internet banking and deal with Yahoo

High street bank Natwest has joined up with Yahoo UK to deliver an online account access service.

From October, Natwest account holders will be able to view balance and statement information through their personalised My Yahoo site or via Yahoo Finance.

At the same time, Natwest will launch free Internet banking, providing customers with a full account management service and real time Internet share dealing. BTclick will be the Internet service provider for the Natwest service.

Andy Ross, director of ecommerce strategy at Natwest, said: "This is the first deal of its kind in Europe. This will make banking on the Internet quick and easy. The relationship creates a powerful combination that allows our customers access to online banking and the best in Internet provision."

The alliance is the latest in a flurry of banks making a move online. George O'Connor, an analyst at Granville, said, "There is an ongoing competitive assault into online banking. Banks find it more beneficial as they are able to reduce cost of their business with accounts online."

"It can be difficult for banks to move from one industry to another and with so many options available Natwest needed to offer something good to attract customers online. Yahoo can offer other online options to the users," he added.

The new service will employ the Secure Sockets Layer (SSL) security standard used for transactions on the Web. SSL encrypts data to protect it from being read by anyone other than the intended recipient.

A spokesman for Natwest said, "We're confident the levels of security are the best available and we are offering customers secure access."

"Around 20 per cent of our customers have said they would be interested in online banking which is about 1.3 million people. People can have the option of Internet and telephone banking or popping into the branch. It isn't about closing branches or anything, just adding another way for customers to bank," he claimed.

Steve Boom, director of business development at Yahoo Europe, said: "Our relationship with Natwest enhances the overall online experience for Yahoo users, allowing them to view their personal bank account details in the same location as they access other Yahoo information and services."