ING Will Terminate Personal Banking Services in the Czech Republic After 20 Years

Published: 22.02.2021 Related countries:  Sweden Sweden

Due to Unfavorable Economic Situation, ING has decided to terminate personal banking services in the Czech Republic after more than 20 years of providing services like savings accounts and mutual funds.

The Dutch bank ING will end its personal banking services in the Czech Republic at the end of this year.  It will continue to provide corporate banking services, it announced in a press release on Thursday, February 18th.

ING has about 375,000 personal banking clients in the Czech Republic, to whom it offers savings accounts and mutual funds.

ING has entered into an agreement with Raiffeisenbank, which will give current ING clients the opportunity to become its customers and transfer savings and investments at discounted rates, from March.

The agreement is subject to the approval of the Office for the Protection of Competition. According to the bank, the decision to discontinue personal banking services after more than 20 years of providing savings accounts and mutual funds was made, while, taking into account the current unfavorable economic conditions and uncertainty about reaching the required level in the upcoming years.

"Given the current economic situation, we do not expect to achieve the necessary size and market position in the near future, which would allow us to achieve sustainable growth in the Czech Republic. However, we want our customers to be well taken care of, and therefore we have provided attractive offer to switch to Raiffeisenbank, a bank with a proven interest in clients and digital experience, "said Isold Heemstra, CEO of ING Czech Republic, about the transaction.

"Part of the agreement is the offer of various advantages and benefits, especially advantageous savings and maintaining the conditions for investment products," added Vladimír Kreidl, a member of the Board of Directors of Raiffeisenbank.

Raiffeisenbank has experience with the acquisition from past projects - eBanka, the retail part of Citibank and Zuno banka.

Raiffeisenbank will actively address ING's clients during March 2021 but only after obtaining the approval of the Antimonopoly Office.

The decision to terminate ING Bank's personal banking services will affect 225 jobs in the Czech Republic that will be canceled during 2021. The remaining 130 corporate banking colleagues will continue to provide services to Czech and global clients from its Prague office, ING added.

Worked out by the employees of CzechTrade Stockholm.

Source: Koťátko Jiří. 18 February 2021. Hospodářské noviny. Available at: https://byznys.ihned.cz/c1-66885170-ing-koncem-roku-ukonci-v-cesku-sve-sluzby-osobniho-bankovnictvi.