Dutch financial services group ING Bank is exiting the retail banking market in the Philippines, shortly after U.S. banking giant Citigroup did the same and sold its Citibank retail business to Union Bank of the Philippines.
ING said it would exit the country’s retail banking market by the end of the year, but would further invest in wholesale banking and expand its global shared services business.
According to the Philippine central bank, ING Bank is the 32ndnd The Philippines’ largest bank had assets of 31.46 billion pesos ($573 million) at the end of 2021.
ING has been operating in the Philippines since 1990, primarily serving corporate and institutional clients. The bank established ING’s business shared services division in Taguig, Metro Manila in 2013, which currently employs 3,000 people. The workforce supports ING globally in the areas of financial markets, loan servicing, customer due diligence and onboarding activities, risk management, retail operations, non-financial risk and compliance, and information technology. There are no changes to the unit on the card.
Retail banking only since 2018
ING entered the retail banking space in the Philippines in late 2018 and currently offers savings accounts, current accounts and consumer loans to more than 380,000 customers, allows customers to open accounts through a mobile app with no minimum amount, and offers mobile cheque deposits and remittances. It once claimed to be “the first fully digital retail bank in the Philippines” but never applied for a digital banking license.
The Wholesale and Retail Banking division has only 120 employees. So far, the number of workers affected by the closure of its retail operations is unknown.
The bank cited the “uncertain” global macroeconomic situation as a reason for it to reassess the scalability of its retail operations in the Philippines as a stand-alone business.
While there was no immediate change to private account holders, the bank said it would inform all of its users about the next steps.
Focus on sustainable financing
“ING will continue to invest in the development of our wholesale banking business to strengthen our position in the country, and we plan to increase our focus on sustainable finance,” said Hans Sicat, country head of ING Philippines.
“We want to capitalize on the growth prospects in various sectors including renewable energy, technology, media and telecommunications, infrastructure and financial institutions,” he added.
No statement has been made as to whether the Philippine retail unit will be dissolved or whether ING will sell it to a local rival.
Dutch financial services group ING Bank is exiting the retail banking market in the Philippines, shortly after U.S. banking giant Citigroup did the same and sold its Citibank retail business to Union Bank of the Philippines. ING said it would exit the country’s retail banking market by the end of the year, but would further invest in wholesale banking and expand its global shared services business. At the end of 2021, ING Bank was the 32nd largest bank in the Philippines, with assets of 31.46 billion pesos ($573 million), according to the Central Bank of the Philippines.
Dutch financial services group ING Bank is exiting the retail banking market in the Philippines, shortly after U.S. banking giant Citigroup did the same and sold its Citibank retail business to Union Bank of the Philippines.
ING said it would exit the country’s retail banking market by the end of the year, but would further invest in wholesale banking and expand its global shared services business.
According to the Philippine central bank, ING Bank is the 32ndnd The Philippines’ largest bank had assets of 31.46 billion pesos ($573 million) at the end of 2021.
ING has been operating in the Philippines since 1990, primarily serving corporate and institutional clients. The bank established ING’s business shared services division in Taguig, Metro Manila in 2013, which currently employs 3,000 people. The workforce supports ING globally in the areas of financial markets, loan servicing, customer due diligence and onboarding activities, risk management, retail operations, non-financial risk and compliance, and information technology. There are no changes to the unit on the card.
Retail banking only since 2018
ING entered the retail banking space in the Philippines in late 2018 and currently offers savings accounts, current accounts and consumer loans to more than 380,000 customers, allows customers to open accounts through a mobile app with no minimum amount, and offers mobile cheque deposits and remittances. It once claimed to be “the first fully digital retail bank in the Philippines” but never applied for a digital banking license.
The Wholesale and Retail Banking division has only 120 employees. So far, the number of workers affected by the closure of its retail operations is unknown.
The bank cited the “uncertain” global macroeconomic situation as a reason for it to reassess the scalability of its retail operations in the Philippines as a stand-alone business.
While there was no immediate change to private account holders, the bank said it would inform all of its users about the next steps.
Focus on sustainable financing
“ING will continue to invest in the development of our wholesale banking business to strengthen our position in the country, and we plan to increase our focus on sustainable finance,” said Hans Sicat, country head of ING Philippines.
“We want to capitalize on the growth prospects in various sectors including renewable energy, technology, media and telecommunications, infrastructure and financial institutions,” he added.
No statement has been made as to whether the Philippine retail unit will be dissolved or whether ING will sell it to a local rival.
