Dutch lender ING is reviewing the strategic options for its retail banking unit in Austria and plans to withdraw from the market by the end of this year.
The bank intends to discontinue its savings-only service for customers in the country in June this year as a first step towards meeting this objective.
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Other efforts related to the business will be coordinated with local regulators, with customers fully supported throughout the process, stated ING.
However, the bank added that it would retain its wholesale banking operations in the country.
The bank entered Austria’s retail banking scene in 2003. At present, the business has a headcount of around 340.
Last year, the bank had nearly 550,000 retail customers in the country, including 50,000 primary customers. Globally, ING
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By GlobalDataThe bank has a retail and wholesale customer base of over 39 million in more than 40 markets worldwide.
Commenting on the latest decision, ING Group member of the management board banking and head of Challengers & Growth Markets Aris Bogdaneris said: “We continuously evaluate our activities, including assessing whether they are likely to achieve the preferred scale in their market within a reasonable time frame.
“In this context we have decided to exit the Austrian retail market, sharpening the focus of our business portfolio on where we can better scale.”
The latest move comes shortly after ING’s announcement to exit the retail banking market in the Czech Republic by the end of 2021. The bank will continue to provide wholesale banking and product services in the country.
In July 2020, ING reportedly decided to close a quarter of its bank branches in its home market in response to the Covid-19 pandemic. According to the report, ING has decided to close 42 out of its 170 branches in the country.
