ING Direct 2013 Annual Report Download - page 32

introduced an innovative and award-winning branch concept to
respond to changing customer demands. In these newly designed
branches, customer centricity is brought to the fore, with ample
room for customer interaction by means of, for example, self-
service facilities. The bank also introduced an iPad mobile banking
app which helps sales teams service customers across retail and
commercial banking.
Customers in Belgium have been embracing new technologies
faster than anticipated, leading to greater use of digital services and
prompting further process automation. In the Netherlands, the
number of mobile log-ons at ING exceeded online banking log-ons
for the first time in the third quarter of 2013.
Addressing the problem of the subdued housing market in the
Netherlands, ING Bank introduced an online “stress test” which
helps homeowners see whether their financial planning can be
improved. ING Netherlands also launched an online tool
(Afloswijzer) to help customers decide whether to save or pay off
their mortgage.
Customer-led change is at the heart of ING Bank. In Retail Banking,
our full service franchises in the Netherlands and Belgium are
evolving as online and mobile channels grow in importance. And in
our direct franchises we are expanding our product range.
Commercial Banking is restructuring its organisation to provide a
more consistent customer experience across sales, servicing and
back office support.
We are becoming the primary bank for more customers. ING Spain,
for instance, started 14 years ago only with savings; now it is well
on the way to becoming the primary bank for many customers, and
a multi-product bank.
In 2013 we enjoyed a number of key milestones and external
recognition. ING-DiBa, for example, surpassed EUR 100 billion
funds entrusted and ING Spain surpassed one million payments
accounts.
Customers voted ING Direct Australia as the Best Bank in Australia
and ING-DiBa was named Germany’s most admired bank for the
seventh year in a row. ING was named “Bank of the Year 2013” in
Western Europe by The Banker, the global financial magazine which
is part of the Financial Times Group; The Banker also named ING
“Bank of the Year” in Belgium, and “Bank of the Year” in the
Netherlands for the third year in a row. Commercial Banking
received several awards in recognition of ING’s capabilities in trade
finance and structured finance. High profile deals demonstrated
Commercial Banking’s skill in combining its expertise to create
tailored solutions for clients across countries and industries sectors.
OPERATIONAL EXCELLENCE
Operational excellence is a key priority at ING Bank. We align
oursystems, structure and processes to deliver the best customer
experience in a cost-effective way. The big transformations
wehaveinitiated in the Netherlands and Belgium, and in
Commercial Banking, are laying the groundwork for a lower
costbase.
ING in the Netherlands is improving its customer services by
focusing on easy-to-use operational processes. To reach this goal,
ING applied 10 simple principles for each operational process, such
as “never ask the customer for information we already have”. In
Belgium, customers can now request business loans online. ING
Turkey in 2013 became the first bank in the country to offer an
electronic invoicing solution which reduces paper and other costs.
ING Romania launched Fast Track Light Automation, an application
to handle loan applications for new Mid Corporate Business
customers within 48 hours.
TOP EMPLOYER
Remaining a top employer is a key priority at ING Bank. Having
motivated employees is essential for success because they build
lasting relationships with customers.
Top Employer teams are organised in each business line, with
responsibility for executing at a local level the bank-wide Top
Employer action plan.
Across the banking businesses, best practices are shared in the
three global priorities identified to bring more focus and
consistency to the Top Employer programme: performance
management, development, and efficient & effective collaboration.
ING France, ING Italy, ING Poland, ING Belgium and ING Spain
received local Top Employer Awards. ING Luxembourg, Interhyp,
ING-DiBa and ING Spain have also received European “Great Place
to Work Awards”, placing them in the top-25 of Best Multinational
Workplaces in Europe. ING is the only financial institution in this
European ranking. This success strengthens our employer branding
and demonstrates that we are on track with our Top Employer
programme.
However, there are several challenges facing us as an employer.
First, the general sentiment towards banks is still not positive.
Second, we had to lower the headcount at ING Bank to reduce
costs and keep our organisation flexible. These measures (also from
previous years with an impact on 2013) resulted in a total reduction
of internal staff at ING Bank by 2,022 FTEs in 2013 despite growth
in Retail International. Third, we tightened up our remuneration
policy in the Netherlands. Despite these challenges, the outcome of
our annual employee engagement survey showed an increased
confidence in the long-term future of the company which illustrates
the resilience of our staff in a difficult environment.
CONCLUSIONS AND AMBITIONS
ING Bank made good progress during the year towards its
Ambition 2015 targets, despite the difficult banking market and
economic conditions. The underlying net profit of ING Bank
improved to EUR 3.2 billion in 2013. This was due to a
strengthening of the interest margin, good cost control, and
supported by the absence of de-risking losses in 2013 and less
volatility from CVA/DVA impacts. The funding profile of the bank
improved, which enabled us to continue to support our customers,
although demand for assets remained subdued.
We continued to deliver on our strategic priorities: sharpening our
business focus; reducing costs; making capital, funding and liquidity
more robust; and meeting customers’ demand.
We include sustainability criteria in our business decision-making.
We have witnessed a continued increase in the volume of
sustainable portfolios across all our operations. For more details
30 ING Group Annual Report 2013
Banking overview continued