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NEWS Jobs to go as ING Thinks Forward
to accelerate its Think Forward strategy, which launched in 2014. Speaking at the Dutch FI’s Group Investor Day in Amsterdam during October, he said that customers are increasingly digital and banking through mobile devices. “Their needs and expectations are the same, all over the world, and they expect us to adopt new technology as fast as companies in other sectors. In order to continue to lead in digital banking, we need to offer a better customer experience, that’s instant, personal, frictionless and relevant. At the same time, banks are confronted with continuous regulatory burden and a prolonged period of ultra-low interest rates. These factors put pressure on the returns which are necessary to fund growth and investments, and cover our cost of capital.”
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As a result, ING is now working towards the goal of one digital banking platform. Countries with similar value propositions will harmonise their business models and develop shared operating platforms. Infrastructure, data and support functions are intended to be standardised across countries and business lines. From 2016 to 2021, ING will invest Euro 800 million in its digital transformation strategy, building a scalable platform to cater for continued commercial growth, an improved customer experience and a quicker delivery of new products. “This would allow us to continue our success in growing our client franchise and diversify our income. Through improved efficiency, the
NG CEO Ralph Hamers has highlighted plans
Accelerating Think Forward programme is expected to deliver approximately Euro 900 million of annual cost savings by 2021,” said Hamerhs.
Digital transformation projects often equal job losses and ING concedes that its plans will have a “significant impact on many of our colleagues. It means some functions will change significantly in nature. It might mean that the location of functions will change. And it might mean that positions will no longer be there in the future. All in all, over the coming five years, around 7,000 functions might be impacted by these effects, including 950 positions employed by external suppliers.”
There is set to be a reduction of ING’s workforce in Belgium by around 3,500 FTEs and by around 2,300 FTEs in the Netherlands for the years 2016-2021. These numbers include the intended move to an integrated banking platform, with the remainder of functions affected spread over intended programmes in IT, operations, wholesale banking and various business support functions. “At the same time, we will add colleagues in parts of our business where we expect to accelerate growth given our plans to continue to attract new customers and increase lending to support the economies we are active in,” Hamers commented.
Scott Thompson
www.ibsintelligence.com © IBS Intelligence 2016
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