Barclays Links Up With Microsoft

They will also be able to download account details directly into the Microsoft program.

In the US personal finance software market, Microsoft Money is a long way behind Intuit Incs more established Quicken software.

Microsoft, which is the worlds biggest software company, was prevented from acquiring Intuit on antitrust grounds.

But in Europe, the market is still nascent, and neither Microsoft nor Intuit have established a strong position.

Richard Reay-Smith, director of personal sector banking at Barclays, said the partnership with Microsoft brings together two market leaders with established reputations for innovation.

The tie is not exclusive.

I could imagine doing the same with the Quicken product from Intuit, and no doubt we will, Reay-Smith was reported as saying.

The competition between Microsoft and Intuit has been described as home bankings version of Coke versus Pepsi.

For banks, the decision on whether to tie their computer-banking services to either software package is difficult.

If I were a banker, the question I would be asking myself is whether Microsoft is my biggest ally or my biggest threat, said John-Eric Bigbie, a banking industry specialist at consultants Mitchell Madison.

Two years ago, Bill Gates, Microsofts chairman, called banks dinosaurs.

Banks, in turn, feared Microsoft would steal their customers.

The relationship is now warmer, however, with Microsoft seeking to concentrate on selling software rather than trying to replace banks.

Microsoft recognises that whatever its ambitions might have been a year ago, the major banks are not going to allow it to stand between them and their customers, Reay-Smith said.

The Barclays service will require customers to dial in with a modem from a PC running Microsofts Windows 95 operating system.