ING Direct 2011 Annual Report Download - page 36

34 ING Group Annual Report 2011
Retail Banking continued
ING Netherlands selected over 100 of its key services and processes
and monitored them in real-time dashboards, resolving problems
assoon as they became apparent. The next step is to provide
customers with service guarantees, explaining the level and speed
of service they can expect.
The Bank continued to work on transferring customers to a single
IT platform following the merger of Postbank and ING Bank in
2009. By June 2011, all Private Banking customers had been
transferred, while the remaining part (all the Dutch Business
Banking and Financial Institutional customers as well as Corporate
Clients) are expected to migrate to the single platform in 2012–13.
This will further reduce IT complexity and costs and will improve
thecustomer experience as they will be offered a consistent service
concept and product range levels.
Customer centricity
Retail NL continued building a customer-centric organisation by
searching for ways to best meet customers’ needs, and investments
were made to improve service. ING is the leading internet bank in
the Netherlands measured by number of customers using an online
bank account (> 4 million), channel usage (70% via the internet)
and sales (40% of net present value). ING is the only bank in the
top 10 of Google search. It is now also active on Facebook, using
this social network to engage in dialogue and knowledge sharing
withcustomers.
Retail NL introduced a mobile banking app for retail customers,
with both payments and savings functionalities. By year-end, the
app had been downloaded more than half a million times and it
had over 367,000 active users. Online product and service offerings
now account for 60% of sales transactions, clearly illustrating the
success of our ‘direct if possible, advice when needed’ approach.
Our ambition is to further increase this percentage by gradually
introducing new mobile offerings. Another online, non-commercial
initiative is Villa Pecunia – a website for, and by, students on which
they can exchange ideas, have discussions and share ‘savings’ tips.
ING Netherlands is the main sponsor of the Dutch national soccer
team and, in2011, established a Young Lions Platform –
a permanent, cross-media platform for 6–12-year-olds. Some
55,000 young Dutch ING customers signed up as members.
The platform has a website with interactive football video games
that can be played with social network friends via Hyves.
ING Netherlands continued to broaden its Duurzaam Spaarbeleid
(Sustainable Savings Policy), aimed at providing consumers
withsimplified, transparent savings products.
Business Banking designed the innovative Conditietest (fitness test),
which provides Mid-Corporate clients with insights into the key
strategic and financial indicators of their organisation, up-to-date
sector information and benchmarking on their competitors. It also
introduced Ondernemerssupport, an online network and support
initiative for mid-corporates, and the Bedrijfsscan (company scan)
forSMEs, offering assistance in improving financial business
practices regarding operating capital, payment transactions
andliquidity management.
ING organised a conference to enhance international
entrepreneurship, the idea being that setting up businesses abroad
will become an increasingly viable alternative to simply exporting
products and services from one’s home country. Representatives of
over1,000 internationally-oriented businesses attended ING’s
International Entrepreneurship Conference in Eindhoven’s Evoluon
in November.
ING continued to improve customer focus by implementing results
from earlier satisfaction measurements among customers. The
product offering in the Rentepuntenwinkel (customer loyalty
programme) was adjusted, following direct feedback from
customers. Client panels and user tests have been consulted to
build, test and improve the new ‘Mijn ING’ website.
ING received international recognition for its efforts. It was
awarded ‘Best Bank of the Year Netherlands 2011’ by the British
magazine The Banker, owned by the Financial Times, and it was
voted ‘Most Popular Website of the Year’ in the Financial Services
Category by Emerce/Metrix Lab.
Private Banking
Retail NL also provides private banking services in the Netherlands
to wealthy individual customers. Private Banking implemented an
ambitious plan in 2011 to strengthen the ING Private Banking
franchise. It also migrated 25,000 Private Banking clients to the new
ING target platforms to give them the advantage of the new and
improved ING services and products.
Private Banking registered a big improvement on its NPS, the
customer loyalty measure it adopted two years ago, scoring highly
compared with its peers.
WestlandUtrecht Bank
WestlandUtrecht Hypotheekbank was renamed to WestlandUtrecht
Bank towards the end of 2010 after which it became operationally
and commercially independent from ING. WestlandUtrecht Bank
(WUB) is run as a separate entity under the ING Group umbrella,
following the ING/EC agreement in 2009 to divest WUB.
In 2011, WUB continued with its commercial campaign and roll-out
of its savings account, SpaarOnline (save online).
RETAIL BELGIUM
FINANCIAL DEVELOPMENTS
The underlying result before tax of Retail Belgium fell 16.4% on
2010, as a slight decline in income was accompanied by higher
operating expenses. Income decreased 0.8% compared to 2010,
mainly due to EUR 17 million of impairments on Greek government
bonds. Interest result remained flat, as a decline in margins was
compensated by higher volumes, particularly in savings and
lending. Net production in mortgages totalled EUR 3.0 billion in
2011, while production in other lending was EUR 3.2 billion.
The net production in funds entrusted was EUR 3.0 billion, mainly
driven by the success of the Orange Book savings product in the
beginning of the year.
Operating expenses increased 6.5% on 2010 to EUR 1,432 million,
mainly reflecting higher staff expenses, increased contribution to
the deposit guarantee scheme and higher marketing expenses.
The addition to the provision for loan losses declined 9.4%, to
EUR 145 million, or 77 basis points of average risk-weighted assets,
mainly attributable to releases in the Mid-Corporate segment.