NEWCASTLE Building Society has reaffirmed its commitment to its customers by introducing technology which will secure the future of its rural branches.

Chief executive Robert Hollinshead said systems had been put in place to allow all aspects of society activity, such as processing mortgage applications, to be done from any of its branches.

The move means trained staff in quieter outposts, such as Berwick or Preston, can contribute in other ways than just dealing face-to-face with customers.

The technological advancement, which Mr Hollinshead said creates a "virtual" organisation, complements the society's decision to set up two new subsidiary companies.

Newcastle Strategic Solutions Ltd enables it to provide computer systems, call centre facilities and mortgage processing to other financial institutions.

Newcastle Financial Services was formed in partnership with Zurich to offer life, investment and pension products.

The institutions contributed to the sociey increasing profit after tax by 8.3 per cent to £13.1m.

Assets under management swelled by £148m to £2,803m.

The firm has also taken on considerable amounts of work - equating to £256m of mortgages - for other financial lenders.

Mr Hollinshead said: "We see that as a major part of our business going forward.

"There are certain types of lending we would not want to do, such as 100 per cent mortgages, but we do not want to turn customers away and so we put people with other lenders. There are big challenges ahead and relentless competition which is why we are taking decisions to try and do some different things."