Barclays moves online with BT

Barclays Bank has recruited BT to build an internet-based network that will enable it put more of its services online.

BT's business-to-business division, BT Syncordia Solutions, has secured a £250m five-year deal with the bank to provide the internet protocol (IP) network. Barclays said the network will speed up the flow of internet traffic across all its delivery channels including branches, cash machines and call centres.

Barclays' customers will be able to access services through Wap-enabled mobile phones, the internet, cash machines or digital television. The bank will also trial applications such as voice-over-IP with BT and AT&T's joint venture, Concert.

BT Syncordia will migrate Barclays' multiple networks to a single, company-wide IP structure over the next 21 months. Barclays predicts that all its 3000 UK branches will deliver services and products through the internet by the end of 2001.

Barclays said the announcement is part of its strategy to forge ahead with ecommerce initiatives and to become the leading internet bank in the UK.

David Weymouth, chief information officer at Barclays, said: "To compete effectively in the new economy, companies have to completely change their business models to fully embrace ecommerce. Barclays has a clear, strategic ebusiness vision which this agreement with BT will help us fulfil."

The bank will outsource its existing UK and international data network infrastructure, which supports branches, ATMs, campus sites, call centres and data centres, to BT Syncordia.

Barclays also joined up with internet service provider Freeserve this week to create a web portal for small businesses. The portal, to be launched in May, will be aimed at managers and staff of small businesses, including Barclays' 450,000 small business customers.