Details of a new mobile phone banking service which will enable AIB customers to view their bank and credit-card balances as well as recent transaction details, were announced yesterday by AIB.

The system, 24-hour mobile, which was developed by Eircell and AIB will be available to Eircell customers from next month on any compatible GSM mobile or WAP phones.

People using the service will have to install a new free SIM card from Eircell in their mobile phones to avail of the service which will cost the same as a text message each time it is used.

AIB general manager for electronic banking, Mr Billy Andrews said the service was more about cost reduction than revenue generation with AIB looking to move routine activity to lower cost channels.

As part of its strategy, AIB says it will offer transaction services through mobile phones - in six to nine months with share dealing available around the middle of the year.

The bank also plans to establish a virtual bank by the end of the fourth quarter but would not be drawn on what form it would take.