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Technology instead of people: ING to cut 1,700 jobs

Staff writer |
ING will take measures to further expand digital banking, strengthen local advisory capabilities in the branch network and to make additional IT investments in its Dutch retail banking unit.

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The steps announced today will result in a workforce reduction and will lead to significant cost savings in the coming years.

Currently, ING uses different IT systems for mobile app, website, call centre and branches. As a consequence, not all customer information is readily available in each channel. By moving to an omni-channel approach, customers can do all their banking digitally and the information will be available across all channels to provide a better, more seamless service.

To support the omni-channel approach and to increase the reliability, efficiency and agility of its IT systems and operations in the Netherlands, ING will make further IT investments.

These investments, which will lead to a more simplified IT landscape with standardised IT systems and highly automated processes will amount to a total of approximately EUR 200 million from 2015 to 2017. Total structural gross cost savings in addition to the existing running programs amount to approximately EUR 270 mln.

The further digitisation of ING's banking services, the reduction of IT systems to be managed and the increased number of automated processes is expected to result in a further reduction of ING's workforce in the Netherlands by around 1,700 FTEs over the next three years, mostly at the headquarters of ING Retail Banking and in the back offices, call centres and IT departments.

For this, a pre-tax redundancy provision of EUR 320 million will be booked in the fourth quarter of 2014. In addition, ING will reduce the number of positions employed by external suppliers by 1,075.

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