Fifteen per cent of small businesses (nearly 440,000) are now using on-line banking facilities according to the BBA, which made its calculations using end-year 2001 figures from the ten largest UK banks.

BBA chief executive Ian Mullen says the findings point to a 20% surge in take-up of online banking among SMEs during the second half of 2001.

The BBA recently created a Web site which enables small businesses to compare account features online, helping them to choose appropriate products.