ING leaves online banking in France: 460 job cuts – 12/21/2021 at 2:50 p.m.


(AOF) – ING has announced its withdrawal from the online banking market in France. This decision is the conclusion of a strategic review carried out since June 2021 by the Dutch bank. ING employees in France were informed today of the conclusion of the strategic review and an agreement was signed with the representative trade unions on the support measures for an Employment Protection Plan (PSE) concerning approximately 460 job cuts.

ING’s corporate and investment bank (Wholesale Banking) maintains its activities in France with the objectives of consolidating its position on the market and its positioning as a benchmark bank in sustainable finance.

ING is currently examining with third parties the possibility of concluding an agreement concerning its customer portfolio. As discussions are ongoing, no further information can be given on this subject at the moment. ING’s online banking today has around 1 million customers.

“Customers continue to benefit from the usual online banking services. Customers and partners will be informed individually before any change in products and services,” said ING.

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In France, the amount of contributions for the month of May 2021 has doubled compared to May 2020, from 5.7 billion euros to 11.4 billion euros.

The market is gradually changing due to a more marked interest of savers in unit-linked funds, while funds in euros are experiencing a net outflow. In May, the net inflow of products in units of account (UA) amounted to 2.8 billion euros. Over the first five months of the year, it reached 13.7 billion euros, a level not seen for fifteen years. The share of UC contributions in total contributions reached 40% in May, against 34% in 2020. This enthusiasm would come both from the good performance of the financial markets but also from pressure from insurers to encourage their clients to invest in this type of support.

Another element of transformation of the sector: the market for retirement savings plans (PER) is also experiencing significant growth. 117,000 additional policyholders subscribed to a retirement savings plan in May 2021, a jump of 335% compared to the previous month.

Many challenges for European banks


The European retail banking model is particularly challenged by the digital boom. Some are withdrawing from this activity, as is the case with HSBC. In addition, there is an increase in risks. Thus, according to the ECB, the strong activity of the big banks in the market for leveraged transactions and the markets for equity-linked derivatives exposes them to excessive risk-taking.

As for French banks, since the health crisis, they have been increasingly exposed to cyber risk following the need to switch financial activities massively and rapidly towards teleworking and the provision of remote services.



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