Starting next month, ING Bank's retail branch network will also provide services to small companies and during the year will add private pension products to its offer aimed at individuals.
"We have over 275,000 individual customers at present," says Albert Roggemans, deputy general manager with ING Bank, who is in charge of coordinating the retail unit.
ING Bank, a player traditionally centred on corporate clients, launched retail operations in 2004, when it brought onto the market a concept that was new at the time; offices that operated in a franchise system, where customers carry out operations on their own. The offices, called Self'Bank, allow for cash withdrawal and depositing, as well as for intra and inter-banking transfers to be operated, with the services being provided on the basis of cards. At present, ING operates 112 Self'Banks and 24 wholesale branches for corporate clients, which also include retail services. "We will reach 200 Self'Bank and wholesale branches by the yearend," forecasts Roggemans.
He says that during the first phase the offer for small firms will include a current account similar to the one offered to individuals. The bank includes in the category of small firms those firms generating an annual turnover of below 1.5 million euros.
For individual clients, the bank provides debit cards that have a current account attached, which currently brings a 6.4% interest per annum, irrespective of the amount of money in the account. Roggemans says the interest on the current accounts of legal entities will be somewhat lower, because cash management is more difficult in this case. Financing products are also due to be added to the offer for small firms by yearend. As regards individuals, Roggemans considers the current offer of banking products and services is quite comprehensive.
In terms of savings products, ING offers only a current account, which allows the investment of funds in relatively favourable conditions. In terms of financing products, the bank offers mortgage loans and added to its portfolio home equity loans and small consumer loans without a real estate guarantee in 2006.
The next step may be the introduction of credit cards, but a decision concerning this is to be made at a later date. For the time being, the bank offers its clients an overdraft facility for debit card users.
On the other hand, Self'Bank units will be equipped with new machines allowing for a more rapid payment of bills to the main utility suppliers.
ING is going to include pension insurance in its retail offer, to be developed by the group's insurance unit. Roggemans says the ING Office network will be used to support the cross-selling of products offered by the various units in the group. The bank plans to reach a network of 250-300 offices by 2008, when its number of customers should have reached one million.
ING Bank
Operates as a branch of ING Bank Amsterdam
At the end of last year held assets worth almost 2.14bn euros, namely 4.2% of overall assets of the domestic banking system
Its market share dropped by 1.1% against December 2005
Starting next month also plans to provide services to small-sized firms
Will add private pension products to its offer designed for individual clients
Targets a 250-300 office network by 2008
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