Forrester rated the main retail web sites of Europe's 25 largest retail banks plus their spin-offs, and six smaller Web leaders - ranking a total of 40 individual web-based operations. Brian Gross, an analyst at Forrester's European headquarters in Amsterdam, commented: 'The Swiss banks shine through with comprehensive, integrated offerings. Consistently integrating a gamut of products and services with useful tools like portfolio analysers, these sites come closest to what it will take to win the battle for customers in Europe's online banking war.'

He continued: 'Competition in online banking has become cutthroat. Most banks are proud that they have brought payments and statements to the Internet, but this is no time for them to sit back and bask in their achievements. Net banking is now reaching mainstream customers, who are starting to trade online and congregate at financial portals. Spin-off banks from insurers, brokers, financial media, and, of course, foreign banks are biting at the established banks' heels to steal these customers......This is nothing less than a war for survival. Even though Europe's top 25 banks are each pouring hundreds of millions of euros into e-commerce, not all of them will convert their offline strength into online strength.'

Forrester says that banks generally will have a tough time competing with financial portals and brokerages and advises that in order to retain consumers, banks must offer integrated, easy-to-use sites that are rich in content and have powerful financial planning tools. Moreover, Forrester believes that they must begin to offer what it terms "Personal Finance Management."

Mr Gross concluded: 'The coming years will see the leading banks move towards Personal Finance Management - sites that are personalized, synchronized across multiple channels, and that offer holistic financial planning as well as a rich product offering. This will include such features as account aggregation, online advice, and a product selection from an array of suppliers.'