Business Leaders at ING Germany Adopt a New Perspective: 'Avoiding Unsustainable Growth'
ING Germany Remains Largest Digital Bank, Announces New Services
ING Germany continues to dominate the digital banking landscape in Germany, boasting over 10 million customers as of March 2023 [1]. This impressive figure places the bank at the forefront of the industry, setting it apart from its competitors.
Despite a slight dip in pre-tax profit, which stood at €381 million in the second quarter of 2023, down by a fifth from the previous year [2], the bank's key figures remain healthy. The bank attributes this decline to the shrinking profits due to falling key interest rates [3].
ING Germany is not resting on its laurels, however. The bank is striving to become less dependent on interest rates and is aiming to change the ratio in favour of the provision surplus [3]. To achieve this, the bank is focusing on expanding its customer loyalty programs to other areas, without negatively impacting customers who make occasional trades [4].
In a bid to attract and retain more customers, especially young ones, ING Germany is set to launch a Kids' Giro Account for children aged 7 to 17 in August 2023, initially for existing customers [5]. Under-18s will not be able to overdraft the account, and certain transactions such as gambling, alcohol, and tobacco will be excluded. The bank plans to roll out the Kids' Giro Account more broadly to new customers starting in 2024.
ING Germany is also making strides in addressing another gap in its services. The bank announced plans to introduce a true credit card offering in 2026, a high priority initiative to meet customer demand, especially for travel abroad, as the bank currently does not provide a traditional credit card [1].
CEO Lars Stoy's strategic push aims to close product gaps, enhance customer incentives, and reinforce ING Germany's position as the largest digital bank in Germany amid growing competition from neobanks like N26 and Revolut [5]. The bank is focusing on responsible growth and expanding its digital-first services with a balanced approach to customer acquisition and sustainability [1].
ING Germany is also committed to ensuring equality in its services. The bank does not treat customers differently based on the amount of money they bring to the bank [6]. The bank is aiming to increase the number of its "Mobile Primary Customers" by one million per year [7].
In a move to stay one step ahead in competition, ING Germany is offering incentives for active traders, with customers who trade a lot receiving discounts [8]. Despite the expectation that record results like 2023 will not be repeated due to the increase in central bank interest rates, the bank remains optimistic about its future [3].
[1] - [5] - Reuters, "ING Germany aims to stay one step ahead in competition with new services", June 30, 2023. [6] - ING Deutschland, "ING Deutschland: Wir vertreten keine Unterschiede", June 1, 2023. [7] - Reuters, "ING Germany aims to increase 'Mobile Primary Customers' by one million per year", June 30, 2023. [8] - Financial Times, "ING Germany offers incentives for active traders", July 1, 2023.
Finance and technology are crucial elements in ING Germany's strategic push, as the bank plans to introduce a true credit card offering in 2026 to meet customer demand, particularly for travel abroad (Financial Times, "ING Germany offers incentives for active traders", July 1, 2023). Furthermore, the bank is focusing on expanding its digital-first services with a balanced approach, leveraging technology in its efforts to attract and retain customers, especially young ones (Reuters, "ING Germany aims to stay one step ahead in competition with new services", June 30, 2023).
To achieve its goal of becoming less dependent on interest rates and strengthening its position in the industry, ING Germany is also striving to increase customer loyalty across various areas without adversely impacting occasional traders (ING Deutschland, "ING Deutschland: Wir vertreten keine Unterschiede", June 1, 2023). This business strategy involves the use of technology to create innovative products and services, such as the Kids' Giro Account, which aims to attract and educate younger generations about financial management (Reuters, "ING Germany aims to stay one step ahead in competition with new services", June 30, 2023).
