ING Direct Australia

ING Bank (Australia) Limited
Subsidiary (of ING Group)
Industry Banking, financial services
Founded 1999
Headquarters 140 Sussex Street, Sydney, Australia
Area served
 Australia
Key people
 Uday Sareen, CEO
Products Finance and insurance
Consumer banking
Corporate banking
Superannuation
Mortgages
Revenue Increase A$679 million (2015)[1]
Profit Increase A$315 million (2015)[1]
Total assets Decrease A$50 billion (2015)[1]
Number of employees
 1,056 (December 2015)[1]
Divisions Mortgages, Savings, Personal loans[1]
Website www.ingdirect.com.au
ING DIRECT Australia building in Sydney, Australia

ING Bank (Australia) Limited (traded as ING Direct) is an Australian direct bank and a wholly owned subsidiary of the multinational Dutch bank, ING Group.

ING Bank (Australia) operates as a series of controlled entities: trusts and the primary bank division, ING Direct, which operates under the segments of Mortgages, Savings and Commercial Loans.[1] Founded in 1999 as a subsidiary of ING Group, ING Direct was Australia's first direct bank and has since grown to become the largest mortgage lender outside of Australia's big four banks.[2] ING Direct scores favourably with customer satisfaction and has the highest net promoter score of any financial institution in Australia.[3][4]

As of December 2015, the bank had $33.3 billion total deposits with 418,049 Orange Everyday transaction accounts open and a mortgage portfolio valued at AU$38.6 billion. ING Direct living super has AU$1.6 billion funds under management and in 2014 had 34,000 active accounts.[5]

History

Vaughn Richtor was the founding CEO of ING Direct Australia in 1999 after first joining ING Group in 1992. Richtor left Australia in 2005 to head ING Group's Indian operations, India Vysya before overseeing commercial and retail management in Asia from 2009.[6][7] Erik Drok served as ING Direct Australia CEO from 2005 to 2009, followed by Don Koch until 2012.[8] Vaughn Richtor returned as CEO 2012 whilst remaining to oversee management in Asia for ING Group.[9]

In September 2009 ING Bank Australia sold its AU$1.86 billion insurance and wealth management stake it had shared with ANZ in a joint venture since 2002 (51% ING Group ownership; 49% ANZ ownership[10]), making ANZ the sole owner.[11][12] The divestment of ING Insurance Australia followed similar measures globally as part of ING Group's structural changes as a result of the 2008 financial crisis.[13] In 2010, ING Insurance was subsequently rebranded as OnePath.[14]

In December 2009, a former ING Bank Australia employee faced court after defrauding the company of US$45million over the course of five years, of which US$13million had been taken during the previous year alone. The accountant had been employed at ING Bank for almost 20 years and was arrested by police after investigation by the organisation's internal security department.[15] For the time from 2001 to 2012, the ING Direct incident was reported to be the largest case of financial fraud in Australia.[16] Following a review in 2013, the New South Wales Court of Criminal Appeal reduced her maximum sentence from 15 years to 12.[17]

Announced in March 2012, ING Direct Australia completed an upgrade of IT infrastructure in 2014.[18] The "Zero Touch" project involved moving the bank's entire operations into a private cloud - which was claimed to be the first for any bank in Australia.[19] Dubbed 'Bank in a box', virtualization of the entire banking platform allows for simultaneous copies of the banking platform to exist on the company's servers. This provides greater flexibility and efficiency for developing new products and services, and the new virtualization technology will also improve redundancy measures and customer experience.[20]

In September 2012, ING Direct entered the superannuation market with Living Super, a self-managed superannuation fund (SMSF).[21]

Uday Sareen replaced Vaugn Richtor as CEO for ING Direct Australia in June 2016 after Richtor announced his plans to retire from business.[9]

Retail Banking Services

ING Direct offers a variety of banking accounts and financial services to Australian residents. Operating as a direct bank, ING Direct has no ATM network or branches, with exception of the customer service lounge at the ING Direct headquarters in Sydney. Services and support are provided over the phone or through online banking. No-fee access to any Australian ATM is provided through a loyalty program.[22]

Products

Financial Claims Scheme

ING Direct deposits are guaranteed up to AU$250,000 under the Australian government's Financial Claims Scheme, since ING Direct operates as a foreign subsidiary with an Australian banking license.[23]

In October 2008, ING Direct suffered a US$749 million outflow of deposit funds, with retail outflows totaling AU$1.5 billion during 2008. The loss of deposits came amid consumer uncertainty as to whether the Australian government's deposit guarantee measures put in place during the Global Financial crisis applied to foreign-owned banks.[24] Despite the outflow, deposits soon stabilized with ING Direct achieving a net income of AU$182 million for 2008, up from 2007.[24][25]

Advertising

In 2007, Billy Connolly was recruited to be in the first major advertising campaign for the bank, launching the new slogan: It's your money. Connolly had previously served as the face for the insurance arm, ING Insurance.[26]

'Charles', an animated orangutan appearing in a series of ads, replaced Billy Connolly in 2010 in part of an AU$5 million campaign over ten weeks.[27]

ING Direct changed its slogan to Spend your life well in 2012.[28]

In June 2015 Isla Fisher became the brand ambassador for the bank, alongside a new tagline How banking can be, as part of an AU$10 million brand overhaul.[29]

See also

References

  1. 1 2 3 4 5 6 "2015 Annual Report ING DIRECT Australia" (PDF). March 2016. Retrieved 2016-04-01.
  2. ↑ Varughese, Ansa (22 February 2015). "ING Group Selling $2 Billion in Mortgage Bonds from ING Australia Bank, Australia's Fifth Largest Mortgage Lender". Realty Today. Realty Today. Retrieved 11 May 2015.
  3. ↑ "Australians more likely to recommend ING Direct than other banks". PR Wire. Retrieved 11 May 2015.
  4. ↑ "ING Direct tops customer satisfaction ratings". InfoChoice. Info Choice Pty Ltd. 1 September 2009. Retrieved 11 May 2015.
  5. ↑ Drummond, Shaun (31 March 2016). "ING Australia full-year profit rises 6pc on new customers". The Sydney Morning Herald. Fairfax Media. Retrieved 1 April 2016.
  6. ↑ "Vaughn Richtor, ING Direct CEO". The CEO Magazine. 7 August 2013. Retrieved 11 May 2015.
  7. ↑ "CEO change at ING DIRECT Australia". ING DIRECT Newsroom. ING Bank (Australia) Limited. 4 June 2012. Retrieved 11 May 2015.
  8. ↑ "ING DIRECT Media Release: Changing of the Guard at ING DIRECT" (PDF). ING DIRECT. ING Bank (Australia) Limited. 11 May 2009. Retrieved 11 May 2015.
  9. 1 2 Drummond, Shaun (22 January 2016). "ING Direct Australia chief and founder to retire". The Sydney Morning Herald. Fairfax Media. Retrieved 10 March 2016.
  10. ↑ "ING". Banks.com.au. Fairfax Media. Retrieved 11 May 2015.
  11. ↑ "ANZ Media Release: ANZ to acquire full ownership of ING wealth management, life insurance and advice businesses in Australia and New Zealand" (PDF). ANZ. Australia New Zealand Banking Group. 25 September 2009. Retrieved 11 May 2015.
  12. ↑ Ryan, Peter (25 September 2009). "ANZ swallows local ING business". ABC News. Australian Broadcasting Corportation. Retrieved 11 May 2015.
  13. ↑ Jolly, David; Dash, David (26 October 2009). "ING to Split in Two Amid $11.3 Billion Rights Issue". The New York Times. The New York Times Company. Retrieved 11 May 2015.
  14. ↑ Cain, Russell (5 August 2010). "ANZ announces OnePath brand to replace ING Insurance". xLife. Life Insurance Direct Australia Pty Ltd. Retrieved 11 May 2015.
  15. ↑ Stavrinos, Anthony (20 December 2009). "Woman in court over $45m spending spree". The Sydney Morning Herald. Fairfax Media. Retrieved 11 May 2015.
  16. ↑ Brett Warfield, Partner, Warfield & Associates (2012). "Million Dollar Employee Fraud in Australia" (PDF). Warfield. Warfield & Associates. Retrieved 12 May 2015.
  17. ↑ Wells, Jamelle (3 July 2013). "Sydney accountant Rajina Subramaniam's sentence cut over $43m theft from ING Australia". ABC News. Australian Broadcasting Corporation. Retrieved 11 May 2015.
  18. ↑ LeMay, Renai (8 November 2012). "VMware out, Hyper-V in at ING Direct". Delimiter. LeMay & Galt Media. Retrieved 11 May 2015.
  19. ↑ Andrews, Simon (6 May 2014). "Zero Touch project puts ING Direct in a private cloud". ING DIRECT Online Newsroom. ING Bank (Australia) Limited. Retrieved 11 May 2015.
  20. ↑ LeMay, Renai (7 May 2014). "ING Direct shifts entire bank platform onto private cloud". Delimiter. LeMay & Galt Media. Retrieved 11 May 2015.
  21. ↑ Christie, Robin (5 September 2012). "Bank launches zero fee super fund, targets advisers". Wealth Professional. Key Media Pty Ltd. Retrieved 11 May 2015.
  22. ↑ "MOZO: ING DIRECT Orange Everyday". MOZO. Mozo Pty Ltd. Retrieved 12 May 2015.
  23. ↑ "List of Authorised Deposit-taking Institutions". Australian Prudential Regulation Authority (APRA). Australian Government. 8 May 2015. Retrieved 12 May 2015.
  24. 1 2 "ING Direct lost AU$1.5bn in deposits during financial crisis". news.com.au. News Limited. 3 April 2009. Retrieved 12 May 2015.
  25. ↑ "ING DIRECT 2008 Financial Report" (PDF). ING DIRECT. ING Bank (Australia) Limited. 31 December 2008. Retrieved 12 May 2015.
  26. ↑ "New Brand Platform the Pioneer of Branchless Banking" (PDF). ING Direct Australia. ING Bank (Australia) Limited. 4 September 2007. Retrieved 5 June 2014.
  27. ↑ "ING Direct replaces Billy Connolly with an orang-utan". News.com.au. News Limited. 27 September 2007. Retrieved 5 June 2015.
  28. ↑ "ING Direct brings magician Dynamo to Australia for lunch break campaign". mUmBrella. Focal Attractions. 10 July 2015. Retrieved 20 November 2015.
  29. ↑ Homewood, Sarah (1 June 2015). "ING Direct launches $10 million dollar brand overhaul". AdNews. Yaffa Media. Retrieved 5 June 2015.

External links

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