ING is set to invest €800m in digital transformation strategies over the next five years and will affect 7,000 jobs, said Ralph Hamers, CEO of ING.
“Customers are increasingly digital and bank with us more and more 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,” Hamers said.
He outlined the importance of digital banking, the need for a better user experience – saying it must be instant, frictionless and relevant.
But, to go with these opportunities, he also stressed some major challenges, citing continuing regulatory burdens and “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.
The new five-year digital strategy is called ‘Accelerating Think Forward’ €800m invested in digital transformation; the creation of a scalable platform to cater for continued commercial growth; improving customer experience and a quicker delivery of new products. ING expects the programme to provide €900m in annual cost savings by 2021.
However, this all means that 7,000 jobs are expect to be impacted by the decision, with Netherlands and Belgium being the most affected.
“In the Netherlands and Belgium, we intend to improve our customer experience by moving to an integrated banking platform, leveraging the combined strengths of the omnichannel capabilities of the Netherlands with the relationship model and advice capabilities of Belgium.”
Belgium’s full-time employees are expected to be reduced by 3,500, while the home country will see its workforce reduced by 2,300 full-time employees.
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