Dutch bancassurer ING Group has announced that it will combine its banking arm ING Bank with the direct business model of Postbank and, as of 2009, operate from a single platform under the single brand name, ING.
The united entity will have a client base of more than eight million retail customers and 600,000 business customers, further strengthening its presence in the Netherlands. It is also expected to help deliver a more superior service to customers and improve operational efficiency.
With an increased customer focus, the new combination is expected to provide competitive products, state-of-the-art internet banking services and highly accessible contact centers.
Under the terms of the agreement, ING will invest E890 million over a five-year period. From 2011, the united entity is expected to generate additional annual pre-tax earnings of E440 million.
However, as a result of this investment, ING expects to reduce the workforce by around 2,500 employees at Postbank and ING Bank over a five-year period.
Eli Leenaars, member of the executive board of ING Group responsible for the global retail banking activities, said: This investment confirms our commitment to the Dutch market. Combining two strong banks under one brand will strengthen our competitive position. At the same time, it is a major transitional process that will affect a large number of our employees. In line with our strong social policy, ING will make every effort to help affected employees from ‘job to job’ and to limit the number of compulsory redundancies to a minimum.