Murray Financial is buying Insurance Village, an on-line insurance quoting service, for £225,000.

Last year Murray said that it would establish an internet bank after failure of its bid for Leek United building society.

Commenting on the deal, chief executive Ken Murray said: "Insurance Village aims to be the best insurance provider on the net.

"Its technology is more advanced and draws quotes from a wider range of insurance companies than any of its competitors, which should help ensure that the quotes it provides are the most competitive.

"Over the coming months, Murray Financial intends to extend by acquisition and organic growth the financial services it offers over the internet."

Insurance Village has been developed by a small team led by Steve Arthington, who has been in the insurance industry for 25 years.

Murray Financial is listed on the Alternative Investment Market.