Austria's largest direct bank no longer sees any growth opportunities in the low interest rate environment. No more business with private customers.
“I have nothing to give away!” With this slogan by the now deceased testimonial Niki Lauda, the Dutch direct bank ING DiBa finally managed to establish itself in Austria around ten years ago.
The growth figures climbed steadily, the bank often left established top dogs behind because of their cheeky and fresh appearances. For a long time, especially when it came to interest, hardly anyone could hold a candle to it. But a few years ago the growth hit the ceiling. Because in times of record interest rates – looking downwards – the bank, which has since been renamed ING, could no longer give anything to small savers. The interest rate for savings that can be redeemed on a daily basis is now only 0.01 percent.
Now the bank is pulling the rip cord and ceasing business with private customers in the country.
“We are legally obliged to pay out interest. In contrast to other countries, a custody fee is not possible, ”says ING spokeswoman Viktoria Gruber when asked by KURIER. In other words: banks in this country cannot pass on the negative interest rates in the euro zone to their customers, they are left with a minus.
However, other banks are much broader and can cover this loss through other areas – such as the securities business. But at ING, 430,000 of the total of 550,000 customers are pure savers. The mutual fund and financing business came too late and half-heartedly.
Of the approximately 350 employees in Vienna, all but a dozen who are responsible for corporate customers will lose their jobs. Last hope: A buyer is being sought for the private customer business who could take over part of it.
“We have grown moderately but steadily in Austria for more than 18 years and have been able to gain a foothold in an established banking market. However, as a relatively small player in a saturated market, we are reaching the limits of growth. We are therefore evaluating strategic options that also include a possible sale of the private customer business in Austria, ”says Barbaros Uygun, head of ING in Austria.
Follow the ING for customers
If you only have a savings account, you will receive a letter by email or post. A notice period of 2 months remains after receipt of the letter. Until then, online banking can still be accessed, and deposits are also secured. After the notice period, ING sends a final account statement and the credit – including the interest accrued up to that point – is transferred to the respective reference account of the customer (at another bank) at the beginning of June. “Please make sure you check whether your reference account is up-to-date,” emphasizes the ING.
Customers with current accounts, custody accounts and consumer or real estate loans are initially not affected by this step. “Your banking and your cards work as before. There are no changes in fees or services. Therefore it is not necessary to change the current account prematurely, ”emphasizes the institute.
The same goes for loans; ING advises against early rescheduling.
Consumer loans can be repaid early without any fees, while home loans incur expenses as before. Funds can still be traded on the free securities accounts. Here, too, ING does not recommend a hasty sale. Information on www.ing.at.
