After expanding into Turkey and Thailand last year, as
well as beefing up its Romania operation, ING has now announced the
rollout of a greenfield retail banking operation in Ukraine. The
group says it is aiming to become one of the top five retail banks
by rapidly growing a nationwide distribution network of over 250
outlets starting in the largest Ukrainian cities.
ING says it will copy the successful self-banking model
introduced in Romania, an entity that has attracted over 544,000
customers since its launch in September 2004. Customers will be
offered a current account with a high interest rate (8 percent) and
overdraft facility, internet banking and access to automated
outlets with cash functions and personal financial advice. ING says
it plans to extend its product offering with mortgages, instalment
loans, fixed term deposits and credit cards products.
Go deeper with GlobalData
The move by ING shows interest in Ukraine remains high. It comes
three months after Intesa Sanpaolo bought Pravex-Bank for €504
million ($781.6 million) and UniCredit snapped up Ukrotsbank for
€1.53 billion (see RBI 590),
and caps a near three-year period that has seen the country’s
consumer financial services market undergo profound change,
starting with Raiffeisen International’s pioneering purchase of
Bank Aval in October 2005 for $1.03 billion.
Eli Leenaars, member of the executive board of ING Group
responsible for retail banking, said in a statement: “Our decision
to establish a retail banking operation reflects our confidence in
the continued growth and development of the Ukrainian economy.”
After pushing into the likes of Romania and Turkey, ING is also
exposed to retail banking markets in Thailand, India, China and
South Korea via various stakes and joint ventures (a 19.9 stake in
Bank of Beijing, for instance). Its ING Direct operation is firmly
established in nine countries and on the verge of breaking into
Japan.
Overall, ING says it has a retail banking footprint in the nine
largest world economies and in 75 percent of the top 20. Citing
figures from consultant McKinsey, ING says it is now the world’s
third largest retail savings bank (with €338 billion) after Japan
Post Bank and Mitsubishi UFJ Financial.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
