17 October 2017
Find out more

ING forced to sell US Internet bank

26 October 2009  |  12684 views  |  2 ING Bank

ING is to divest its successful Internet banking operation ING Direct in the US as part of an agreement with the European Commission on a mammoth restructuring plan to separate its banking and insurance activities worldwide.

Under the programme, the giant Dutch bank will sell off all of its insurance operations over the next four-years as part of an effort to repay a $10 billion bail-out by the Dutch state.

Announcing the plan, ING chief Jan Hommen says: "Widespread demand for greater simplicity, reliability and transparency has made a split the optimal course of action".

As part of the restructuring, the EC has insisted that the Dutch bank must sell its ING Direct franchise in the US.

ING says it regard the US operation as a "very strong franchise" that offers potential for growth. It is anticipated that a divestment will take several years and will not be completed before the end of 2013.

In a statement, the bank says: "This agreement has no impact on other countries. ING remains committed to the ING Direct franchise, as a strong contributor to ING's growth going forward. The unique customer proposition, simple transparent products and market-leading efficiency are at the heart of ING's banking strategy."

However, much of ING's success has been built on offering headline-leading interest rates for Internet-only savings. The new deal with the Dutch state specifically precludes ING from being a "price leader" in any EU country for certain retail and SME banking products. These restrictions will apply for the shorter period of three years or until the banks has repaid its debt burden.

Comments: (2)

Paul Penrose
Paul Penrose - Finextra - London | 26 October, 2009, 13:01

The last rites for the bancassurance model?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 26 October, 2009, 14:34

Wow. ING marketing executives always caused a stir at conservative US banking conferences by giving in-your-face presentations about stealing share from the incumbents. And now this. 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
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 Direct sets up bank fee comparison Twitter stream

ING Direct sets up bank fee comparison Twitter stream

02 July 2009  |  7786 views  |  0 comments
ING Direct targets savers with Web 2.0 micro-site

ING Direct targets savers with Web 2.0 micro-site

26 November 2008  |  11196 views  |  1 comments
ING Direct offers US customers free anti-fraud software

ING Direct offers US customers free anti-fraud software

23 May 2008  |  11081 views  |  0 comments
ING Direct in EUR416m bid for Germany's Interhyp

ING Direct in EUR416m bid for Germany's Interhyp

20 May 2008  |  4632 views  |  0 comments
ING Direct buys US online brokerage Sharebuilder

ING Direct buys US online brokerage Sharebuilder

06 November 2007  |  8058 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.innotribe.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14477 views comments | 11 tweets | 3 linkedin
Taiwan's Far Eastern International Bank suffers malware attackTaiwan's Far Eastern International Bank su...
13082 views comments | 16 tweets | 22 linkedin
Monzo fends off suitors as current account upgrade beginsMonzo fends off suitors as current account...
8974 views comments | 17 tweets | 14 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
7922 views comments | 15 tweets | 20 linkedin
Ripple blockchain network hits 100-member markRipple blockchain network hits 100-member...
7621 views comments | 13 tweets | 13 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job