Lloyds TSB has launched an ecommerce service that allows customers to buy goods and services via a single point.

Vantage, an internet-based transaction hub, manages the purchasing process for organisations of all sizes.

Ken Kyle, head of business development at Lloyds TSB, says the service provides benefits for buyers and suppliers.

'Vantage is all about saving time and money through increased process efficiency,' he said.

The bank can provide a broad range of financial services via the hub. Key electronic components of the system include invoicing, auctions, buying, payments and online credit functions.

The Vantage ecommerce system is based on technology that is already being used by 70 public sector organisations. Users in the private sector include House of Fraser, Manchester Airport and Zurich Financial Services.

The bank has now extended the service, and will be concentrating on corporate customers.

Kyle says companies are taking a more pragmatic approach to buying and selling, and are ready for a web-based service such as the Vantage system.

'The dot com hype built up ecommerce out of all proportion but the savings are there,' he said.

'Fingers got burned but, after a period of reflection, people have realised that these kinds of services do add value.'

In the past eight months, House of Fraser has used Vantage to run five electronic auctions for indirect goods and services, and has achieved annual savings of almost £2m.

Lloyds TSB generates revenue from Vantage from an annual licence fee charged to the buyers and suppliers using the system.

And Kyle expects thousands of organisations to trade through the system in the future.

Vantage was created as a result of Lloyds TSB's purchase of software company Best Value Procurement (BVP) in 2004.

BVP was established in 2001, and worked with the bank for three years before Lloyds TSB acquired it last September.