Bank of Ireland has backed its Isle-of-Man-based Internet bank, Fsharp, into its offshore Bank of Ireland International (BOII) business following the failure of the operation to attract more than 2,000 customers since it was set up in September 1999.

The bank said the decision followed "a strategic review of its offshore operations". A spokeswoman said there would be no job losses as a result of the merger. But Fsharp, like other standalone Internet banks, had attracted fewer customers than expected.

Fsharp had targeted a different customer base from BOII which was already operating from the Isle of Man as an offshore bank using telephone and post banking and client managers for customers with deposits exceeding £50,000 sterling (€79,974) rather than a branch structure. BOII was set up in 1981.

Fsharp targeted young Irish professionals living abroad and offered online current accounts, debit and credit cards, foreign exchange service and funds management.

"We found we did not get the client base we aimed at and that the two operations were getting the same type of customers," the spokeswoman said.

BOII managing director Mr Roly Alden runs the merged Bank of Ireland Fsharp. Bank of Ireland spent about £3 million (€3.8 million) setting up the Fsharp platform which Mr Alden described as "a modest but wise investment". Asked why Fsharp was set up as a standalone operation, he said research at the time indicated this was the way to go.

Explaining the merger he said: "We have been listening to our customers. They wanted online and offline facilities as well as personal relationships so it made good sense to put the two together."