17 January 2018
visit www.ebaday.com

ING cuts 2500 jobs in retail banking overhaul; to extend Web banking to Japan

16 May 2007  |  9151 views  |  0 ING Bank

Dutch banking group ING has unveiled plans to combine its two domestic retail networks under one brand, in a move that will see 2500 full-time job losses over the next five years. The bank is also planning to extend its Internet banking operations into large and mature markets, beginning with Japan.

ING is investing EUR890 million in overhauling its domestic retail banking operations, which is expected to deliver an additional EUR440 million in annual pre-tax earnings by 2011. The bank says the new combination aims to achieve a cost income ratio below 50% in 2011.

Under the plan the Dutch bank will combine its Postbank and ING Bank retail networks under the ING brand. The bank will ditch its Postbank brand altogether in 2009.

ING says the direct business model of Postbank will form the basis of the combined bank, which will have more than eight million retail customers in the Netherlands. The bank is also investing in its current ING Bank network and says it will transform existing branches into "modern bank shops" where all customers can get personal advice.

Commenting on the 2500 job cuts, Eli Leenaars, member of the executive board, ING Group, says: "In line with our strong social policy, ING will make every effort to help affected employees from 'job to job' and to limit the number of compulsory redundancies to a minimum."

As well as overhauling its domestic retail operations, ING says it is looking to extend its direct banking operations, ING Direct, into large and mature markets.

In line with this ING has applied for a banking licence from Japan's Financial Services Agency (FSA) and plans to launch direct banking services in the country in the second half of the year.

"By entering Japan, ING Direct will expand its presence to countries representing approximately 70% of the global savings market," says Dick Harryvan, CEO of ING Direct.

Japan will be the 10th country in which ING operates its Web banking services. The direct bank currently has 18.2m customers and contributes six per cent of ING's overall profit. ING Direct added 707,000 new customers and EUR5.8 billion in own-originated mortgages in the first quarter.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

ING corporate actions clerk indicted for wire fraud

ING corporate actions clerk indicted for wire fraud

23 April 2007  |  6160 views  |  0 comments
ING creates Dutch 'mini-state' in Second Life

ING creates Dutch 'mini-state' in Second Life

23 February 2007  |  10797 views  |  0 comments
ING to use fingerprint technology to secure dealing room

ING to use fingerprint technology to secure dealing room

13 February 2007  |  6206 views  |  0 comments
ING Direct live with RSA authentication technology

ING Direct live with RSA authentication technology

17 August 2006  |  22109 views  |  0 comments
ING agrees EUR800 million outsourcing deal

ING agrees EUR800 million outsourcing deal

04 July 2006  |  5992 views  |  0 comments
Internet banking pays off for ING

Internet banking pays off for ING

13 May 2005  |  8489 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comvisit www.niceactimize.comvisit www.thomsonreuters.info

Top topics

Most viewed Most shared
Buffett rubbishes cryptocurrencies; South Korea preps exchange crackdownBuffett rubbishes cryptocurrencies; South...
11549 views comments | 15 tweets | 17 linkedin
BNP Paribas Asset Management completes fund transaction blockchain testBNP Paribas Asset Management completes fun...
10160 views comments | 14 tweets | 33 linkedin
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
9596 views comments | 32 tweets | 34 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
9462 views comments | 17 tweets | 18 linkedin
Exchanges call for global fintech standardsExchanges call for global fintech standard...
9192 views comments | 17 tweets | 13 linkedin

Featured job

Competitive base + commission
New York City, NY - USA

Find your next job