Dutch financial institution ING is pulling out from its retail banking operations in the country by end of 2022 but would continue its wholesale banking business. It had been the 32nd biggest commercial lender of the country in asset terms with P31.46 billion as of end 2021.
Dutch multinational banking group, ING is leaving the Philippine retail banking before end of 2021 because of uncertainties in the global economy.
ING said setting up its retail business in the Philippines in 2018 was intended to be the foundation for broader plans in Asia.
“However, the uncertain global macro situation in the last few years led to ING deciding not to expand the activities to other countries, which meant that the retail operations in the Philippines had to be re-assessed for its scalability as a standalone business,” ING said in a statement.
It currently serves some 380,000 customers with savings accounts, current accounts, and consumer lending.
Money is secure
ING assured retail customers that they could still access their funds and accounts and their money remains secure. They will be notified soon and can visit the bank’s website for more information.
Hans Sicat, country head of ING Philippines, said they will continue to invest in their wholesale banking business, strengthening its position in the country and continuing its global shared services operations.
“Our high-profile hires are steps in this direction. We hope to take advantage of the growth prospects in various sectors like renewable energy, technology, media and telecommunications, infrastructure, financial institutions, among others,” he said.
ING’s Business Shared Services, which supports other units globally, has some 3,000 employees. Its wholesale and retail banking business employs 120 people, Rappler reported.
The bank assured its retail clients that their funds are safe and will remain accessible as it will continue to operate as usual until its exit from the business.
It said their customers can visit its website for information and updates on the impending shutdown of its retail business, including on how to close their accounts. It will no longer accept account opening requests.
Still, ING Bank said it will retain its wholesale banking business and global shared services operations in the Philippines.
“ING has a history in the Philippines that goes back more than 30 years. In that time, we’ve developed strong and steady partnerships with a number of the country’s largest corporations and financial institutions,” ING’s Sicat said in a statement.
ING Bank has been operating in the Philippines as a wholesale lender since 1990 and entered the retail banking business in late 2018. It launched an all-digital savings bank platform in early 2019, reported Business World.
In 2013, the lender established ING Business Shared Services B.V. Branch Office or IBSS Manila to provide 24/7 global support for ING in areas including retail operations, financial markets, trade finance, lending services, due diligence, audit, legal, risk management and compliance, and IT and software development, among others.
“Extended capabilities and services have driven our growth and development in recent years. We have had to move to bigger premises several times since 2013; and have plans to take up an additional 12 floors in One Ayala Tower 2 in the next few months to accommodate our growing diverse teams as we take on additional projects and services this year and beyond,” IBSS Manila Chief Executive Officer Cees Ovelgonne said.
ING Bank was the 32nd biggest commercial lender in the country in asset terms with P31.46 billion at end-2021.
The lender’s move comes after Citigroup in 2021 likewise announced its exit from its consumer banking business in the country, along with other Asia-Pacific markets.
Citigroup has sold its Philippine consumer portfolio, including its credit card, personal loans, wealth management and retail deposit businesses, to UnionBank of the Philippines, Inc. for P55 billion.
The acquisition also includes Citi’s real estate interests in relation to Citibank Square in Eastwood, three full-service bank branches, five wealth centers and two bank branch lites.
Tags: #ING, #retailbanking, #wholesalebanking, #uncertainties, #globaleconomy