NEWCASTLE Building Society (NBS) has beaten off stiff competition to win a contract to provide Internet banking services to a leading high street bank.

The building society will administer the Bradford and Bingley's new Internet savings account, in a move which the firm said would significantly boost its profile and help increase staff numbers by 80 by the end of the year.

The agreement, one of the largest signed by the company, will see NBS handling thousands of customers opening savings accounts online with the Bradford and Bingley.

NBS launched its Internet banking service in 1998 and already provides online services for other financial institutions.

The building society, which employs about 800 staff in the region, has 15,000 Internet customers of its own.

It said the agreement with Bradford and Bingley could potentially see them dealing with 15 times that number.

Robert Hollinshead, NBS chief executive, said: "This deal is a real step change for the business.

"The prestige of winning a contract with a leading banking plc means a great deal in terms of our credibility.

"It's only been possible because of the great technological expertise we've developed here."

NBS, which has a head office in Newcastle city centre, will see staff levels rise to 880 by the end of the year.

Mr Hollinshead said the deal with the Bradford and Bingley had contributed significantly to the jump in job numbers.

"This is definitely a growth area and we've been ahead of the game in developing our Internet services," he said.

"As far as I'm aware, we're the only company offering this service to financial institutions so this side of the business offers us huge potential."