Natwest is to offer its customers a service allowing them to back up company information online, aimed particularly at any companies worried about the millennium bug..

Natwest Data@Bank will be primarily offered to the bank's medium and large businesses from the end of October, but the product was developed by online data warehousing group Netstore.

Data on any standalone computer or laptop is automatically backed up on a daily basis and sent via the Internet to secure databanks where it is encrypted.

Kevin Brown, senior executive of business services, said: "We will target SMEs in the future. Many of our customers use e-banking and they trust us to look after their data. It's a big problem. A lot of people don't have back-up processes, or if they do they are manual intensive. If they lose that data they can go bankrupt."

Steve Luckett, an account manager for Netstore, said: "Natwest has bought the service to resell to their customers. We hope to get inroads into other businesses through Natwest."

The UK based company presently has some 30 resellers, but Luckett said Natwest is their "biggest household name".

Natwest's Brown said: "This is not a straight forward distribution deal. We have tended to avoid being a reseller of other people's products, but Netstore is not looking for a retail name. They are happy with Natwest Data@Bank."

He added: "We have the distribution capability and they will provide the software and support behind the service. We will sell at the same price they do and mutually divide the spoils."

Natwest has trialled the product internally and is considering using it throughout the business.

Brown said: "We're looking to using it internally for lap tops and standalone PCs."

Natwest is offering the service free for the first month and £15 per month per user thereafter.