The company would withdraw only from the retail banking market in Austria while continuing its Wholesale Banking business in the country
Dutch financial services firm ING has unveiled its plans to commence a strategic review to cease its retail banking operations in Austria by the end of 2021.
The strategic review process is anticipated to focus entirely on ING’s retail business, and options include a possible sale of the Austrian retail banking business.
ING said that the review follows a continuous evaluation of business activities, checking whether it is likely to achieve the preferred scale in the market within the set time frame.
The company stated that it would withdraw only from the retail banking market in Austria while continuing its Wholesale Banking business in the country.
ING Group management board banking member and challengers and growth markets head Aris Bogdaneris said: “We continuously evaluate our activities, including assessing whether they are likely to achieve the preferred scale in their market within a reasonable time frame.
“In this context, we have decided to exit the Austrian retail market, sharpening the focus of our business portfolio on where we can better scale.”
As part of initial measures, the company is planning to discontinue its savings-only offering for customers in Austria, starting from June 2021.
ING said that it would ensure its customers are fully supported throughout, as it withdraws from the local retail banking market in Austria.
Also, any further measures related to the company’s retail operations in Austria will be closely coordinated with local regulators.
ING has been active in the Austrian retail banking market since 2003. It had nearly 550,000 retail customers in Austria last year and currently employs around 340 FTEs in its Austrian retail operations.
Last month, the company announced its plans to exit the Czech retail banking market in the Czech Republic by the end of 2021.