Telephone bank First Direct yesterday announced that it was transforming itself into an "e-bank" and launched a broadside at the spate of standalone internet banks launched in recent months.

Giving details of its new online service, First Direct - a division of HSBC - said it was combining its experience of phone banking with the strengths of the net to create "an internet bank you can talk to". It said it expects to double its 1m customer base within three years.

People will be able to register for the Firstdirect.com service from today, but the product range will not be available until June. Until then, would-be customers will have to make do with the bank's promise of "fiercely competitive" rates on current accounts, credit cards and other products. Alan Hughes, chief executive of First Direct, stressed it would continue to offer its phone banking service alongside online banking and expected customers to use both channels.

In a swipe at online banks such as Egg and the Halifax's Intelligent Finance, he said he believed the standalone net proposition "is a terrible one". First Direct differs in that it already has 1m customers and is profitable, he said.

"The difference here is that First Direct is a proven force, we are profitable, there is a clear income stream and we have a record of delivering service across a range of technologies. We will not be here today and gone tomorrow."

Mr Hughes highlighted dissatisfaction in the US with the poor web service associated with some online banks.