ING next foreign bank to exit retail banking in the Philippines
Dutch financial services group ING Bank is exiting the retail banking market in the Philippines, just shortly after US banking giant Citi did the same and sold its Citibank retail business to Union Bank of the Philippines.
ING said it would leave the retail banking market in the country before the end of the year, but would further invest in the wholesale banking business and expand its global shared services operations.
According to data from the Philippine central bank, ING Bank is the 32nd largest bank in the Philippines with 31.46 billion pesos ($573 million) in assets as of end-2021.
ING has been present in the Philippines since 1990, primarily serving corporate and institutional clients. The bank established its unit ING Business Shared Services in 2013 in Taguig City, Metro Manila, which currently has 3,000 employees. The workforce provides global support services for ING in areas such as financial markets, lending services, client due diligence and on-boarding activities, risk management, retail operations, non-financial risk and compliance as well as information technology. No changes for this unit are on the cards.
Retail banking only since 2018
ING ventured into the retail banking space in the Philippines in late 2018 and currently serves more than 380,000 customers with savings accounts, current accounts and consumer lending, allowing customers to open an account from a mobile app without a minimum amount and offering mobile check deposits and money transfers. It used to call itself the “first fully digital retail bank in the Philippines,” but never applied for a digital banking license.
The wholesale and retail banking businesses unit has just 120 employees. The number of workers affected by the closure of its retail business is so far unknown.
The bank cited the “uncertain” global macroeconomic situation as its reason for reassessing the scalability of its retail operations in the Philippines as a standalone business.
While there are no immediate changes for private account holders, the bank said that all of its users will be notified regarding the next steps.
Focus on sustainable financing
“ING will continue to invest in growing our wholesale banking business to strengthen our position in the country, and we have plans to increase our focus on sustainable finance,” Hans Sicat, country head of ING Philippines, said.
“We hope to take advantage of the growth prospects in various sectors like renewable energy, technology, media and telecommunications, infrastructure and financial institutions, among others,’ he added.
No statement has been made yet whether the Philippine retail business unit would be disbanded or ING would offer it for sale to a local competitor.
Dutch financial services group ING Bank is exiting the retail banking market in the Philippines, just shortly after US banking giant Citi did the same and sold its Citibank retail business to Union Bank of the Philippines. ING said it would leave the retail banking market in the country before the end of the year, but would further invest in the wholesale banking business and expand its global shared services operations. According to data from the Philippine central bank, ING Bank is the 32nd largest bank in the Philippines with 31.46 billion pesos ($573 million) in assets as of end-2021....
Dutch financial services group ING Bank is exiting the retail banking market in the Philippines, just shortly after US banking giant Citi did the same and sold its Citibank retail business to Union Bank of the Philippines.
ING said it would leave the retail banking market in the country before the end of the year, but would further invest in the wholesale banking business and expand its global shared services operations.
According to data from the Philippine central bank, ING Bank is the 32nd largest bank in the Philippines with 31.46 billion pesos ($573 million) in assets as of end-2021.
ING has been present in the Philippines since 1990, primarily serving corporate and institutional clients. The bank established its unit ING Business Shared Services in 2013 in Taguig City, Metro Manila, which currently has 3,000 employees. The workforce provides global support services for ING in areas such as financial markets, lending services, client due diligence and on-boarding activities, risk management, retail operations, non-financial risk and compliance as well as information technology. No changes for this unit are on the cards.
Retail banking only since 2018
ING ventured into the retail banking space in the Philippines in late 2018 and currently serves more than 380,000 customers with savings accounts, current accounts and consumer lending, allowing customers to open an account from a mobile app without a minimum amount and offering mobile check deposits and money transfers. It used to call itself the “first fully digital retail bank in the Philippines,” but never applied for a digital banking license.
The wholesale and retail banking businesses unit has just 120 employees. The number of workers affected by the closure of its retail business is so far unknown.
The bank cited the “uncertain” global macroeconomic situation as its reason for reassessing the scalability of its retail operations in the Philippines as a standalone business.
While there are no immediate changes for private account holders, the bank said that all of its users will be notified regarding the next steps.
Focus on sustainable financing
“ING will continue to invest in growing our wholesale banking business to strengthen our position in the country, and we have plans to increase our focus on sustainable finance,” Hans Sicat, country head of ING Philippines, said.
“We hope to take advantage of the growth prospects in various sectors like renewable energy, technology, media and telecommunications, infrastructure and financial institutions, among others,’ he added.
No statement has been made yet whether the Philippine retail business unit would be disbanded or ING would offer it for sale to a local competitor.
