Smartcards help deliver financial services over the till

The Co-operative Bank has set up a committee to explore to best ways to deliver financial services through Co-op supermarket stores. At the top of their list is a scheme to allow customers to put money into independent savings accounts over the till.

According to Mervyn Pedelty, chief executive of the Co-operative Bank, it is the introduction of smartcards that will make the service possible. The transaction speed of the cards will minimise the delay to other queuing customers and increase efficiency. He added that it will be two or three years before the service is ready to launch.

As part of the drive to link financial services with retail outlets, the bank will also install 16 ATMs (automated teller machines) in stores across the UK during the next month.

The bank yesterday released half year pre-tax profits of £40.2m, up 22 per cent on last year's figure of £33m. Costs rose just 6 per cent, with most of the increase coming from the electronic and telephone banking services. The fully comprehensive Internet banking service was only launched in March.