According to reports in the Observer, Sir Richard Branson is looking to follow supermarket giant Tesco into the online-retail banking market.
Any new product will be marketed under the the Virgin Money brand, headed up by former Norwich Union marketing director Jayne-Anne Gadhia. However, Virgin Money must first apply for a full banking licence from the Financial Services Authority (FSA).
Earlier this year, Branson told the media he was looking to launch a high-street banking brand within two years. Part of the plan may involve a partial acquisition of state-owned bank Northern Rock, which Virgin attempted to buy in 2008.