ING eyes the top spot

The profile of a bank (post-crisis) reads a bit like a tightrope walker: on the one side of the balance beam you have new regulations put in place to prevent future financial crises. These regulations are primarily focussed on prudence—minimising risk. Then you’ve got the new active shareholders—the government—who have the unmitigated agenda of seeing more credit being pushed into the economy.

Undaunted, ING Wholesale Banking has set itself some ambitious targets in Belgium, aiming at being number one for medium-sized and large companies requiring wholesale banking services. Using the Greenwich survey (the wholesale/ corporate banking report) as a yardstick for performance, the bank aims by the end of 2010 at a score of 90% market penetration, with at least 50% in the role of core financial services provider.

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One of the company’s major vehicles for change is their newly diversified offerings.  Even with recently imposed restrictions, ING have realised that minimizing risk doesn’t necessarily mean you can’t increase your footprint.   With a desire to get to know their clients better (something banks in the past have been criticized for neglecting) they’ve reorganised their team and are bolstering their services and products with a range of new ones. This strategy is supported by a well thought-out communication plan, which started in May with the bottom line campaign and which is now focussing on the theme of balance sheet optimisation (www.ingwholesalebanking.com/bso). In the view of ING, balance sheet optimisation is all about meeting short term capital needs and at the same time preparing to finance future growth plans.

Looking beyond traditional lending, ING Wholesale Banking is increasing its participation in investment funds, acquisition finance and other hybrid solutions.  In some areas it plays a facilitating role and in others it is investing its own capital.  For example, it recently invested in Gimv’s new XL fund (aimed at supporting Flanders’ larger growth companies) and a fund set up by the Wallonia Business Angels Network (BAM).   ING Wholesale Banking has realised that to effectively facilitate growth in their clients’ companies often means turning to a more diverse set of solutions.  The bank is ramping up activities in sector-specific investment vehicles, for example, targeting the biotech sector.  Acquisition finance is back on the cards and absolutely pivotal to the Belgian economy. ING Wholesale Banking is an important player in the financing of infrastructure projects (via private-public partnership contracts).  By participating in a range of different investment and credit vehicles, ING is effectively increasing its impact in the Belgian market.  It is leveraging its position as a major bank for companies in Belgium and gets the necessary means for this from ING Group level.   Refocusing on the Benelux home market whilst diversifying one’s offerings and thereby focusing on the needs of clients is the new measure of success to ING.