The bank has been using the application for a number of years but under the new agreement TietoEnator will provide ALCB with hosting and 24 hour IT support for the system.

The project will see the bank migrate from a VMS to a Unix platform, which will create a more integrated IT infrastructure on one of Alliance & Leicester's core operating platforms, says the vendor.

Dave Storey, systems administration manager, ALCB, says a 24 hour hosted service will bring greater efficiencies to operations, particularly if overnight processing should fail: "Round the clock monitoring of the system offers the business a crucial safety net and guarantees service excellence for our customers."

The terms of the deal also include the development of a dealer front end system that will provide online quotations and application submission for internal users, external sales staff and brokers.

The system will replace paper-based forms with electronic contract documentation and fully automated underwriting - including automatic credit searching - and will provide straight-through processing of applications and documentation.