ING to cut 1700 staff and grow digital investment

ING to cut 1700 staff and grow digital investment

Dutch bank ING is to cut 1700 jobs and spend EUR200 million to simplify and upgrade its IT systems over the next three years.

ING says it will take measures to further expand digital banking, strengthen local advisory capabilities in the branch network and make additional IT investments in its Dutch retail banking unit

The bank says the investment will result in the loss of 1700 jobs, mostly at the headquarters of ING Retail Banking and in the back offices, call centres and IT departments. In addition, the bank says it will reduce the number of contractors employed by 1075.

Ralph Hamers, CEO of ING Group says: “We are creating a consistent customer experience by integrating our service channels in the Netherlands and by making a substantial investment to simplify and upgrade our IT systems. Unfortunately, the more efficient way of working will impact many of our employees.”

Currently, ING uses different IT systems for mobile app, website, call centre and branches. The technology upgrade will help the bank to move to a cross-channel capability so that customers can be offered more relevant, timely, and pro-active service and advice, both remotely and in the branch.

The bank says the cuts in staff will lead to a pre-tax provision of around EUR320 million in Q4, balanced by expected annual gross savings of around EUR270 million from 2018 onwards.

Comments: (2)

A Finextra member
A Finextra member 26 November, 2014, 09:221 like 1 like

shame the banks see "digital = cost savings" whereas consumers see "digital = more engagement".  The bank ethical legacy, IT stack, and operational footprint mean they can spend all they like "on digital" but inevitably the new kids on the block will eat their lunch. 

Hitesh Thakkar
Hitesh Thakkar - SME - Fintech startups (APAC and Africa) - India 26 November, 2014, 17:15Be the first to give this comment the thumbs up 0 likes

Bankers @ING knows it best. They sale it's stack in Insurance and Banking in last one year in India... Lion in India has left with one Leg now.

They got fund to go Digital.. Now knows how to get rid of some baggage from staff :) assume that they have done assessment of resource and skills matrix post digital banking scenario.