In a move that has left many perplexed, ING Luxembourg  the cessation of its retail banking services on Wednesday 29 May 2024, prompting the Luxembourg Bankers’ Association (ABBL) and local retail banks to spring into action. The ABBL, along with various financial institutions, has measures to facilitate the seamless transition of clients’ assets to other banks, ensuring continued service provision, stated a press release on Friday 31 May.

, CEO of the ABBL, interpreted ING Luxembourg’s decision as indicative of both the intense competition in Luxembourg’s retail banking sector and the extensive regulatory pressures that have accumulated over the past decade. Grbic noted that increasing regulatory requirements have necessitated greater allocation of financial and human resources, thereby impacting the profitability of retail banking services.

In response to the situation, the ABBL has engaged in consultations with ING Luxembourg, other retail banks and relevant authorities to devise a plan for the orderly transfer of clients’ assets. This plan aims to guarantee uninterrupted services for affected clients. Grbic emphasised the commitment of ABBL members to sustain and enhance the provision of retail banking services in Luxembourg, with several banks already preparing to welcome new clients by providing detailed onboarding information and processes on their websites.

ING Luxembourg has also committed to supporting its clients through this transition. The bank has increased staffing levels at its branches and contact centre and has created a dedicated section on its website to provide essential information. Additionally, ING Luxembourg has extended deadlines to allow clients ample time to make necessary arrangements.

The ABBL in its communiqué also made note of the consumer protections afforded under the law of 13 June 2017, which guarantees access to a basic payment account. This law ensures that individuals have the right to maintain essential banking services.