Bank of N.T. Butterfield customers will now be able to go live and on-line with the launch of Bermuda's first Internet banking service.

The service, called Butterfield Direct Internet Banking, will be free for all customers who want to bank on-line.

Internet banking will be available for personal and commercial accounts, and customers will now be able to execute more complex matters such as wire transfers on-line.

But residents will not be able to set up accounts on-line as Bermuda's banking laws require a physical presence to open up accounts.

"I believe the system will prove easy for customers to use, '' said Edward Benevides, vice president of e-commerce banking who led the team designing the site.

"Butterfield Direct is an innovation that adds more value to the bank's existing services and reinforces our commitment to meeting our customers' needs -- anywhere, anytime.'' The system went live yesterday and can be accessed at www.bankofbutterfield.com. 24 hours a day.

The bank's 700 current remote banking service (a limited form of Internet banking) will now be transferred over to the new system, and then it will be launched to the general public.

Customers will be able to perform a whole host of tasks they would normally only be able to do by being physically present.

They will be able to view a portfolio of accounts in any major currency, access account information such as chequing, savings or loans and pay bills such as insurance, telephone and cable.

They will also be able to set up payments on-line providing the bank has a link with the company.

Customers will also be able to transfer money between accounts, request cheque books (and choose the design on the cheque book), wire transfers, bank drafts and manager's cheques.

Corporate clients will be able to set up defined account groups which will allow them to view separate sections of a company (such as a subsidiary) all at once.

They will also be able to make bulk payments, perform electronic data interchange functions at a lower transfer cost, and use a form of "duel authorisation'' for more control of who in the company is authorised to do transactions on-line.