ING Group, a multinational bank and financial service corporation, is going to scrap around 7000 jobs to increase its revenue. It planned to invest in the digital platform which could result in the saving of 900 million euros a year. ING (International Netherland Group) is headquartered in Amsterdam which primarily deals with retail banking, direct banking, commercial banking, investment banking, asset management, and financial services.
Currently, the bank’s employee figure is 51,833. The most of the job cuts will happen in the Benelux region, 2300 in the Netherlands and 3500 in Belgium. With the approx. cut of 12 % in job, the bank has decided to improve its digital platform which is getting more popular among people.
Ralph Hamers, CEO of ING group, said in a conference, “You have to announce these programs and these intentions at an affordable time. We are strong right now, we are growing and then you have to do repairs and not when you don’t have choice anymore.”
He further said digitalization has been fostering banking sector for three-four years and now it pervades everywhere. Also, tech giant like Facebook and Google has increased customer expectation in the countries where ING are working.
Moving for its new revival, ING group would invest 800 million euros in its digital platform which would move in five years through Spain, Italy, France, Austria and Czech Republic. These countries are supposed to be a challenging market where ING would like to flourish along with some dominant banking via online banking. ING has a record of success in Germany with a similar business model by making a little physical presence and winning market via online.
In recent years, some other banks have also cut jobs to increase revenue. Since the financial crisis of 2008, thousands of jobs have been cut and the figure will go high by 2020 with the increase in digitalization. However, some people put concerns into this by saying it is good to become digitalized but these people need to back to work in other way round.