Bank of Ireland is setting up a separate company to develop its e-commerce business. The new firm, which will trade as BOIe, is expected to employ between 80 and 100 people, who will be recruited mainly from within the Bank of Ireland group.

The company is being established to forge alliances and partnerships with other companies and is currently in negotiations with three potential partners, according to group chief executive Mr Maurice Keane.

BOIe will have a separate board comprising Mr Keane, Bank of Ireland governor designate Mr Laurence Crowley and Esat Telecom founder Mr Denis O'Brien, who was recently appointed to the bank's court of directors.

Mr Keane said the company would have an entrepreneurial ethos and would be empowered to make swift decisions.

The bank aims to invest €125 million (£98.5 million) over the next two years in BOIe although Mr Keane said this was not an absolute figure and might increase depending on its needs.

Bank of Ireland's sales and marketing general manager, Mr Des O'Reilly, will take up the chief executive role in the new company.