Dutch bank ING has announced plans to exit the French retail banking market following a strategic review announced earlier this year.
The closure will impact 460 ING employees and the bank and local unions have reached an agreement on a social plan for them.
The social plan awaits clearance from the French Ministry of Labour, the bank added.
ING noted that it will continue its wholesale banking business in the country with a focus on strengthening its position and offering sustainable finance.
For its client portfolio, the lender is holding discussions with third parties to reach an agreement.
ING member of the management board banking, head of retail banking and 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 French retail market, sharpening the focus of our business portfolio on where we can better scale.”
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Since 2000, the lender has been operating in France as an online bank.
It caters to nearly one million customers and offers current accounts, mortgages, consumer lending and investment products.
ING’s French arm has a headcount of 700, of which two-thirds work in the retail segment.
Earlier this year, ING revealed plans to exit the Austrian retail banking operations.
The bank sold its Austrian retail arm to bank99 for an undisclosed sum.