Deutsche Bank, the German financial services giant, is to base a new online investment bank in Dublin and Cork. The project, which could employ several hundred people, is a major coup for the Republic in its efforts to become a European hub for online financial services. Wit Capital Europe announced a similar project based in Dublin last year.

Deutsche plans to offer individuals the opportunity to invest on a Europe-wide basis via the Internet. As well as being able to manage their assets online through the bank, they will be given the opportunity to participate in stock-market flotations and other investment opportunities being promoted by Deutsche. They will be given "privileged direct access to innovative products, advanced trading tools and extensive market intelligence," according to a recruitment advertisement carried in The Irish Times today.

The bank is currently recruiting almost 100 people to staff its back-office operation which will be based in Cork, most likely in the Airport Business Park. Under current IDA guidelines backoffice projects based in Dublin are not eligible for grant support. The actual bank is expected to be based in Dublin where Deutsche already has a substantial operation in the International Financial Services Group. Initially, the new service will be targeted at German customers.

Wit Capital Europe, which offers a similar service, has appointed Mr Russell Chambers as managing director, head of investment banking, for Ireland and Britain. Mr Chambers, who previously worked for Merrill Lynch, the US investment bank, advised the Government on the Telecom Eireann flotation last year.

Wit is a joint venture between the US online investment banking group, Wit Capital and Enba, the Dublin-based online financial services investment vehicle. Enba's other ventures include First-E, the Internet bank.