Difficult though it may be to imagine, there was once a time when the now multi-purpose bank had only two basic functions - to take care of your savings and to administer loans.

Things were simpler then. There were no PIPS or PEPS, no tracker bonds and no question of a bank offering pensions, life assurance or more controversial products such as offshore accounts.

It is only in the past decade that the average banking customer has begun to regularly avail of as many as 10 key banking products. Banks, as we once knew them have undergone enormous change and are now more accurately described as one-stop-money-shops.

The key driver of this change has been us, the humble consumer. "Irish people are now more financially astute," explains Mr John Kelly, head of Business Banking with Allied Irish Bank (AIB). "We have witnessed the arrival of a more assertive customer who is looking for a total solution to their financial needs at a single point of sale".

Meeting these needs has become the mission of financial institutions. Banks and building societies are now among the most recognised brands in the state. With more money in their pockets, a heightened awareness of the stock exchange and the development of capital markets consumers began to demand more options. Financial institutions were only too happy to oblige.

One of the first developments was market segmentation. "The days of banks being all things to all people are gone," says Mr Kelly. Intensive research was used to segment the markets so that sections of the community such as students, the retired, parents or two-income families could be dealt with more effectively.

Inevitably, the increased demands meant a dramatic increase in the number of products offered by banks and the AIB boast is that they have more than 300 - a product for almost every day of the year.

"The product range is quite vast compared to the old days," says Mr Declan Reid, of Bank of Ireland. According to Mr Reid advances in technology have changed the face of banking.

"In the past you only accessed services from your local branch but with more sophisticated technology there are a lot more delivery channels," he says. For example, telephone banking which allows people access to their accounts 24 hours a day and Internet banking where transactions can be made from the comfort of your personal computer.

While the product range on offer is very similar from bank to bank in terms of packaging and price, the battle for consumers hearts is now being fought with regard to the service provided by financial institutions. "Customers no longer have the time to spend in queues in banks and they want speedy access to a reliable and efficient service," says Mr Reid.

The changes in the traditional banking system are mirrored in other institutions such as insurance company Eagle Star. "Once upon a time you simply bought motor insurance," says group marketing manager Mr Patrick Manley. "Now it comes with two hours emergency assistance and the same applies to household cover."

Until relatively recently it would have been unheard of to request that your insurance company provide you with the phone number of a decent plumber. One of the best examples of increased products and service, says Mr Manley, was the stormy weather over Christmas when Eagle Star customers had 24 hour access to roofers who were called in to repair the damage wrought by the elements. Conscious of the move by banks into the provision of insurance-based products another insurance group, Hibernian, has also been broadening its product base with a credit card linked to a loyalty programme.

"Previously, any kind of credit cards were in the realm of banks but we introduced a card whereby our customers can accumulate points by using the services of fifteen companies including Atlantic Homecare, Clery's and Texaco," said an Hibernian spokesman.

With the introduction of demutualisation which allowed Building Societies to behave like banks, institutions such as the Irish Permanent became almost indistinguishable from their banking cousins in terms of the products they have on offer.

Since 1993 they have provided current accounts, cheque books and ATM cards and in the last two years have offered laser card facilities. "Our focus is to provide all financial services under one roof," said a spokeswoman indicating that the one-stop-money-shop is here to stay.

Next week Business 2000 will look at how the accounting sector has dealt with European Monetary Union