ING Direct 2015 Annual Report Download - page 7

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Who we are - continued
Our strategy and progress
Purpose
In 2015 we continued to build on our Think Forward strategy
to empower customers and provide them with a
differentiating customer experience. That includes a focus on
being leaders in the digital customer experience based on
easy, 24/7 access, simple products and services and tools to
help customers make sound financial decisions.
Those goals are reflected in our Customer Promise to
be Clear and Easy, make financial services available
Anytime-Anywhere, Empower, and to Keep Getting
Better for customers.
Our appeal to customers was demonstrated in 2015
by the growing number of primary relationships -
customers with current accounts and at least one other
product with us – and also in ING’s high Net Promoter Scores,
with customers rating us number one compared to peer
banks in seven of our leading markets.
Contributing to the sustainable development of society
is also an integral part of the Think Forward strategy. Our
sustainability direction focuses on two areas: enhancing
the financial capabilities of clients and non-clients and
supporting companies to make the transition to more
sustainable business models.
We financially empower by making banking accessible
and easier to understand in line with our Customer
Promise. We serve communities where we operate
through programmes to teach financial literacy in
schools. And through our partnership with UNICEF we
support life skills training including financial literacy
training for adolescents in less developed countries.
Staying relevant for customers
The success of our strategy will ultimately depend on
how well it enables us to adapt to change and continue
to deliver a superior experience to our customers.
The pace of disruption affecting the banking industry
further accelerated in 2015. There are an increasing
number of new entrants in many areas traditionally
serviced by banks, including payments, lending, investment
services and foreign exchange. New business models based
on easily accessible, digital services are challenging bank
revenue streams. They are focusing not on price leadership
but on offering a superior customer experience, confirming
that this is the area banks will need to focus on to succeed.
Consumers are rapidly turning to digital services for an
increasing number of needs. What they are experiencing
with digital leaders is shaping their expectations. In
ING’s case, nearly 90 percent of retail customers now use
digital channels to contact us, and just under 70 percent use
them exclusively. This makes it more and more important
that digital contact to be clear and easy for them, with
for example digital on-boarding and end-to-end mobile
sales processes.
We continue to face a challenging economic environment.
Economic growth has returned to the main markets where we
are active, but it remains sluggish. Interest rates remain at
historic lows, putting pressure on savings and lending
margins, which make up a large portion of our revenues. As a
response, we are increasing our focus on services to
customers that generate fee income, such as investment
services.
Regulation is another challenging area for financial
services. Many regulations have been introduced since
the financial crisis to increase the stability of the banking
system. New regulatory initiatives in the pipeline could further
increase capital requirements for banks, putting pressure on
returns. This will require banks to look for new sources of
income and to lower costs. At the same time, EU initiatives to
create a Digital Single Market are increasing competition, but
the slow pace of development of the European Banking Union
means it is challenging to benefit from cross-border
opportunities.
All these developments in the external environment confirm
to us that we are on the right track with our strategy to create
a differentiating customer experience based on digital
leadership. We support that through the clear and easy
approach embodied in our Customer Promise.
Elements of our strategy
Our Think Forward strategy was launched in March 2014
and guides everything we do.
Our strategic priorities
We have identified four strategic priorities that serve to create
a differentiating customer experience.
Our enablers
Our enablers help us in simplifying and streamlining our
organisation, further striving for operational excellence,
enhancing the performance culture within our company and
diversifying our lending capabilities .
About ING
ING Bank Annual Report 2015 5