ING Direct 2011 Annual Report Download - page 32

30 ING Group Annual Report 2011
Banking overview continued
CUSTOMER CENTRICITY
Customers’ needs are constantly evolving, so it is crucial to keep
close to them, anticipate their every requirement and provide new
products and services.
In the Netherlands, for example, ING Business Banking introduced
an innovative and easy tool, based on the Bank’s in-depth
knowledge of every industrial sector, to help clients assess their
financial needs.
ING continued working with the Net Promoter Score (NPS),
whichmeasures customer loyalty. Feedback from customer service
isused to improve ways of doing business. It is therefore a
measurement tool as well as a means of changing business culture
and driving growth. An example of improved customer centricity
isthe implementation of customer complaints procedures by ING
Bank Slaski and ING Bank Turkey. The changes reduce the amount
of time needed to resolve complaints and allow ING to better
analyse customer feedback and thus improve its processes,
products and services.
Mobile banking and social media initiatives are on the increase.
In several countries mobile banking has been introduced, including
in the Netherlands where we launched a mobile banking app for
private customers. ING uses social media like Facebook, Twitter
andblogs to get closer to customers, to run special promotions,
and togather feedback to improve existing products and services
and develop new ones.
ING Direct Canada, for example, used customer feedback to
develop the THRiVE Chequing Account; an online, no-fee, daily
checking account that pays interest.
TOP EMPLOYER
Being a top employer is another key priority of ING because
banking is a people’s business. Having engaged and motivated
employees is essential to achieving success.
As an employer, we play an important role in driving engagement.
However, we are operating in a very challenging environment and
thefinancial sector as a whole, and ING in particular, is going
through many changes. Staff therefore must handle a lot of
concernsand uncertainties. It is of the utmost importance to us
thatour employees feelengaged and motivated, especially in these
challenging times.
Several initiatives were taken in 2011 to enhance employee
engagement, stimulate personal development and manage talent.
ING Bank Slaski, for instance, developed an online programme to
help staff map out their career opportunities. The programme is
linked in with succession planning, the recruitment process and
performance appraisals. As a result ING Bank Slaski has received
Top Employer awards and continues to enjoy a strong standing
inthe Polish labour market.
Across ING Bank as a whole, the ING Commercial Bank Academy
and ING Business School provide a coherent global learning and
development strategy for staff around the world.
Additional IT investments will help to reduce costs while delivering
faster and more accurate service. They will alsoenable customers to
manage their financial affairs through theirpreferred banking channel.
In 2011, financial markets were confronted by a worsening of the
sovereign debt crisis in Europe. ING maintained a prudent approach
to risk, substantially reducing its government bond exposure to
southern Europe and de-risking its total investment book.
In addition, ING’s exposure to asset-backed securities and to real
estate development projects and investments declined sharply. For
more information on ING’s policies and measures for managing risks,
seethe chapter on ‘Risk management’.
In 2011, ING Bank realised a number of divestments. With the sale
ofING Direct USA, ING met one of the principal restructuring
requirements of the European Commission. With the divestment
ofING Car Lease, ING continued to sharpen the focus on its core
banking franchise. The divestment of ING Real Estate Investment
Management, completed in October, fits with ING’s strategic
objectives of reducing exposure to real estate, simplifying the
company and further strengthening the capital base. WestlandUtrecht
Bank is now run as a separate entity and is being prepared for sale.
(See also chapter ‘Strategy’).
ING’s large retail deposit base is a significant source of funding.
It isamong the largest in Europe and underlines that ING has a
good funding position compared to other banks. Thanks to our
strong funding position, we have increased lending to our customers
even in uncertain times. The fact that we continued to provide
customers with credit and products underlines our focus
oncustomer centricity and will help build trusting relationships.
ING’s net inflow of funds entrusted in 2011 was EUR 18.8 billion
compared to EUR 25.1 billion in 2010. The net production of
lending in 2011 was equal to 2010: EUR 25.6 billion of which
EUR 19.7 billion in mortgages (net inflow/production is adjusted
forforeign-exchange impacts and divestments).
Despite our strong funding position, we need to become even
more self-reliant. To achieve this, our One Bank ambition and the
further integration of our balance sheet remained a top priority
during the year.
OPERATIONAL EXCELLENCE
Achieving true operational excellence is a key priority. It goes far
beyond just cost-cutting. Operational excellence is about constantly
improving products, processes and systems to structurally and
sustainably increase efficiency. For ING it means a simpler
organisation with more time to focus on the customer.
An example of progress made in the area of operational excellence,
was the integration of the commercial banking business in Germany
with ING-DiBa, the direct retail banking business in Germany. The
creation of the One Bank in Germany will optimise the banking
businesses and customer services by making more efficient use of
capital and liquidity. Another example was the launch of a new
initiative by ING Direct France which allows customers to open
savings accounts through an online-only process.