Jan Hommen, the new CEO of ING, said that ING will cancel ten till fifteen non-core activities. This will bring in six till eight milliard euro. Already one point four milliard is realized by selling ING Canada. These disinvestments are part of a bigger strategic plan, ING wants to go back to basic on all levels. The customers have to come on the first place in everything ING does.
There will also be a division of the finance and insurance business. But they stay under the name ING. Further ING will concentrate on the deposit accounts, uncomplicated products and a strong marketing and distribution. They will also concentrate more on Europe , more specific the activities in the Benelux. There will also be a cost saving on fortune control. This by bringing it under one worldwide system.
On the field of insurance, ING will put the accent on life insurances and pension insurances. And the insurance activities are staying under regional management.
ING is right on schedule and that is noticeable because the share rose with 17,8 percent.
In my opinion it is a good idea to go back to basic. Because nowadays banks are doing a lot of different things, actually to many things and they forgot the mean principle of what a bank does. They are too busy with too many things. They are selling a lot of different financial products, all insurances, investments, loans… When they cancel some activities, like ING does, it will go better. It will also be easier and better for the customizer.
De Ridder Steffie
Source: http://www.standaard.be/Artikel/Detail.aspx?artikelId=K428S476
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My opinion is actually the same as Steffie. It is better to do 1 thing that you are good at, then 10 different things you are not very good at.
BeantwoordenVerwijderenIn the past, banks were institutions where you could put your money in an account and invest a little. But nowadays they give out loans, insurances, investments, shares, premium bon, deposits, accounts and so on... Their activities are too diversified. Which can be a good thing but in times of financial crisis it is a bad thing.
Ruth Blommaert