ING on Wednesday 29 May that it would cease offering mass retail banking services for private individuals in Luxembourg. The decision followed an evaluation of the bank’s activities and market potential. “We have concluded that, for us, there is no realistic path towards sustainable growth in the foreseeable future in mass retail banking in Luxembourg,” said , CEO of ING in Luxembourg. The bank has begun informing affected customers about the change.
In the announcement, ING acknowledged the turmoil caused by the account closures. The bank admitted underestimating the impact of its communication, leading to frustration among its clients. Burch stated, “We realise that the request to transfer the assets to another bank caused frustration to our clients. To support them in the best possible manner, we have put in place additional measures with immediate effect.”
To address customer concerns, ING has increased staffing in its Ettelbruck, Esch/Alzette, Strassen and Luxembourg Gare branches to answer questions and clarify the account transfer process. The bank has also strengthened its contact centre team to handle incoming calls and messages, as well as published a special section on its webpage with key information and FAQs related to account closures.
“We understand that the approaching summer holidays are a concern for many,” said Burch. “Whereas the standard procedure foresees a blocking of the account after two months’ notice, we will make sure that accounts remain accessible to enable our customers to take the necessary actions.”
Focus on wholesale banking, private banking
The bank will now concentrate on growing its wholesale banking and private banking activities. Burch noted an unmet demand in Luxembourg for personal banking relationships and sector expertise, which ING is “well-positioned to fulfil.” He stated, “We are firmly committed to remain a key player in Luxembourg in wholesale and private banking. This increased focus enables ING to remain a strong and sustainable financial partner.”
ING has been active in the grand duchy since 1960.