ING Direct 2011 Annual Report Download - page 40

38 ING Group Annual Report 2011
Retail Banking continued
ING Bank Slaski in Poland aims to be ‘the most internet bank’.
In2011, its website www.ingbank.pl, was ranked the most
user-friendly bank website in Poland by experts from banking
website Money.pl.
ING Bank Turkey launched the Orange account, the country’s first
variable savings product (variable term), which was developed using
ING’s extensive savings know-how. The Orange account accelerated
an operational transformation and simplification of the business
and enhanced ING’s image in the Turkish market. It helped double
the level of deposits in ING Bank Turkey in 2011 with 44% of all
Orange accounts opened coming from new customers. The
account positioned ING Bank Turkey as an innovative, customer-
savvy savings bank. It also showed how ING could bring its global
experience to help local operations in emerging markets to best
meet the financial needs of their customers. ING Bank in Turkey
also launched a mobile phone banking application, which took first
prize in the ‘Best Mobile Application’ category in one of the
country’s largest interactive award ceremonies.
Customer Centricity
ING’s retail banks are working towards their aim of becoming
thepreferred bank in their respective countries, and so therefore
customer satisfaction is very important. Throughout 2011,
INGBank Turkey and ING Bank Slaski in Poland used the NPS
methodology. The Net Promoter Score (NPS) at ING Bank Slaski
improved from 22% at the beginning of the programme in the
second quarter to 27% at year end, indicating that more people
were happy with ING’s service.
Dealing with customer complaints in a timely and effective manner
is a priority issue for ING. During the year, ING Bank Slaski and ING
Bank Turkey implemented new customer complaints processes. The
changes reduced the amount of time needed to resolve complaints
and also enabled ING to better analyse customer feedback, which
is then used to improve ING’s management, products and service.
In Romania, a project aimed at analysing customer complaints,
identifying problem areas and improving resolution times helped
liftthe ‘first call resolution’ rate to 72%.
RETAIL ASIA
FINANCIAL DEVELOPMENTS
Retail Asia’s underlying result before tax declined to EUR 72 million
in 2011 from EUR 80 million in 2010. This decline was mainly the
result of lower income, primarily as a result of unfavourable
currency movements. Excluding currency impacts, underlying
income was up, driven by ING Vysya Bank, where higher interest
results were coupled with increased fee income and higher other
income. Net production in lending was EUR 1.2 billion in 2011,
while the net inflow of funds entrusted was EUR 0.5 billion. The
increased profit contribution from ING Bank’s share in the result of
TMB in Thailand and higher dividends from Bank of Beijing were
offset by higher funding costs resulting in an overall decline of the
interest result.
Operating expenses were down 3.9% to EUR 173 million, but
increased adjusted for currency effects, mainly as a result of
business expansion in India.
The addition to loan loss provisions rose by EUR 4 million to EUR 30
million, or 32 basis points of average risk-weighted assets in 2011,
mainly as a result of higher non-performing loans at ING Vysya Bank.
BUSINESS DEVELOPMENTS
Retail Banking is well positioned in the important Asian markets of
India, China and Thailand. As with all other banking business units,
Retail Asia’s core focus is to become the customer’s preferred bank
by focusing on operational excellence, customer centricity and being
a top employer.
ING Vysya, in which ING has a 44% stake, serves over two million
customers and is growing in line with the rapidly developing Indian
banking market. The business transformation programme in TMB
Bank in Thailand, in which ING has a 30% stake, is yielding results
with many operational efficiencies achieved and increased
profitability for the third year in row.
Bank of Beijing (BoB) – in which ING has the largest single
shareholding (16.07%) – is the largest city commercial bank in
China. ING provides principally risk management and retail banking
expertise to BoB. Several years ago, the Beijing municipal
government recognised ING’s work in assisting the bank with its
risk management by awarding the company ‘The Great Wall
Friendship’ award.
Operational excellence
ING Vysya Bank implemented a performance measurement system
MOP – Measure of Performance Scores – in its operations divisions.
Performance of all operational units is now measured through a
defined score card on a monthly basis.
ING Vysya Bank continued to improve customer usability. A new
consumer finance system (mortgages, vehicle finance) was
launched which resulted in a faster turnaround time in processing
customer applications.
In Thailand, TMB Bank continued to work improving brand
recognition and customer engagement. Brand recognition rose
to66% in April 2011 from 31% in May 2009. TMB is in the second
phase of its transformation programme which focused on service
and operational excellence, product expansion and channel and
brand enhancement.
Customer centricity
ING Vysya Bank continued to expand its national reach by
extending its branch network to 526 branches in 373 cities as at
the end of 2011. The Net Promoter Score programme was launched
and resulted in a positive score.
TMB also opened more branches as part of its strategy to improve
channel accessibility. It plans to relocate and open more than 50
branches. The bank also strengthened its electronic banking
channel by enabling existing clients to open savings and term
deposit accounts online.
On the product front, TMB introduced a ‘No Fixed Account’ product,
the first savings account in Thailand with no minimum balance and
no withdrawal or transfer fees. In its first month, 160,000 accounts
were opened. A ‘no-slip’ service was introduced to make deposit
and withdrawal transactions easier for the customer.