ING Direct 2007 Annual Report Download - page 8

> Focus on banking,
investments, life insurance
and retirement services
> Provide retail customers
with the products they need
to grow savings, manage
investments and prepare
for retirement
> Invest in bank distribution
and high-growth markets
> Continue to improve
business fundamentals and
maintain strength in capital
and risk management
In a very challenging environment, ING
performed strongly in 2007, both on
the commercial front and in the areas
of risk management and capital allocation.
We believe this illustrates the strength of
our strategy to capitalise on the changing
customer preferences transforming the
fi nancial industry. We are accelerating the
allocation of capital to high-growth areas
by focusing on banking, investments, life
insurance and retirement services. We also
returned capital to our shareholders in
2007 through an attractive dividend and
a signifi cant share buy-back programme.
Capitalising on changing customer
preferences
As more customers live longer, they
want to save enough to enjoy retirement.
Across the globe, but especially in
developing markets, increasing wealth is
driving strong growth in client balances.
There is growing demand for savings and
investment products in particular, be it
from a bank or an insurer. With wide
product and service choice, people expect
strong investment performance from their
fi nancial services providers.
Against this backdrop, the life insurance
sector is undergoing a paradigm shift from
traditional to investment-linked products,
with distribution increasingly moving into
the banking domain. Rapid technological
developments mean customers can access
fi nancial services faster and in many more
ways. They increasingly obtain easy, direct
access to fi nancial products, and seek
advice only when they need it, leading to
growth in direct distribution channels,
refl ected in the success of Postbank and
ING Direct.
Building on solid business capabilities
Three important strengths drive ING’s
business. First, we have a broad product
portfolio of high-performance product
capabilities and are one of the world’s
largest savings banks. Our product
manufacturing is supported by extensive
expertise and skills in our Investment
Management businesses, and asset
generation and transformation capabilities
in our Wholesale Banking businesses.
Secondly, we have a strong retail customer
franchise and an extensive distribution
reach, including a broad presence in
ING is sharpening its strategic focus on
banking, investments, life insurance and
retirement services:
• To provide retail customers with the
products they need during their lives to
grow savings, manage investments and
prepare for retirement with confi dence.
• To invest more in building bank
distribution platforms.
• To invest increasingly in high-growth
markets.
• Oyak Bank (Turkey) 100% share purchase.
• Pension businesses (Latin America).
• TMB (Thailand) 30% stake.
• Full ownership Landmark (South Korea).
• Divestment non-core activities in Mexico.
• Combination of ING Bank and Postbank
in the Netherlands.
• Launch of retail banking in Romania
and Ukraine.
• Launch of variable annuities in Spain
and Hungary.
• Transformation of retail banking in Belgium.
• Expansion of ING Direct.
• Launch of pension fund in Romania.
Business
initiatives
Active portfolio
management
New
strategic focus
6Our performance
Strategy Focusing the strategy
to accelerate growth
ING Group Annual Review 2007