ING decided to leave the Czech Republic market, based on economic headwinds and limited potential for customer growth
ING's headquarters in Amsterdam, Netherlands. (Credit: Jan Derwig/Wikipedia.)
Dutch lender ING has unveiled its plans to exit the Czech retail banking market in the Czech Republic by the end of 2021.
The company said that its decision to withdraw from the Czech Republic market was based on economic headwinds and limited potential for customer growth.
ING is expected to continue its Wholesale Banking operations in the Czech Republic, which would remain an integral part of the WB EMEA network.
ING banking management board 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 Czech retail market, sharpening the focus of our business portfolio.
“We are confident that our customers are well -served by the attractive offer from Raiffeisenbank, which has a proven customer-centric and digital track record.”
ING has been operating in the Czech retail banking market for more than two decades. The bank is engaged in providing savings accounts and mutual funds and currently serves nearly 375,000 retail customers.
The company has reached an agreement with Raiffeisenbank Czech Republic to provide its customers with a preferential rate to move their savings and investments, ensuring their banking needs are addressed.
ING said that it is continuously evaluating its activities, including assessing their chances to achieve the preferred scale in their market within a reasonable time frame.
The assessment has driven the bank’s decision to withdraw from the Czech retail market, refining the focus of its business portfolio.