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120,000 join Smile in first six months

Smile, the internet arm of Co-operative Bank has shown how successful online banking can be by attracting 120,000 customers in its first six months.


The parent company has reported a 20 per cent rise in pre-tax profits to £88.6m in the year to January 8.


Smile&#39s main competitor in the online banking sector is Egg, owned by Prudential. That venture has done substantially better, drawing in nearly £1m in savings accounts over its first year in business. Half of Egg customers are believed to use the telephone, however.


Co-operative chief executive Mervyn Pedelty says “We bore all the costs of setting up and marketing Smile and still made that profit.”

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