Lloyds TSB for one is now pondering how best to do that. The bank, result of a 1995 merger of Lloyds Bank and the former TSB building society, finds itself under pressure to expand or seek larger partners to stay in competition with rivals like HSBC, Barclays and NatWest. In recent years it has tried to broaden its base by acquiring mortgage lender Cheltenham and Gloucester, and life insurers Abbey Life and Scottish Widows. All personal banking customers and some business customers of Lloyds TSB can already use the internet to take care of their money. If the plans for the UK come to fruition, Lloyds TSB would follow the example set by Prudential's Egg, HSBC's First Direct and Co-op's Smile.
Some competitors are already out of the starting blocks.
First-e, for example, is an internet bank based in Dublin, owned by a French company and offering its services in the UK and Germany. The BBC is not responsible for the content of external internet sites Links to other Business stories are at the foot of the page.