ING Ceases Retail Banking Services for Private Individuals in Luxembourg

On Wednesday 29 May 2024, ING announced that it is no longer offering mass retail banking services for private individuals in Luxembourg.

Michael Burch, CEO of ING in Luxembourg, commented: "We continuously evaluate our activities, including assessing whether they are likely to achieve the preferred scale in the market within a reasonable time frame. We have concluded that, for us, there is no realistic path towards sustainable growth in the foreseeable future in mass retail banking in Luxembourg."

ING added that it was in the process of informing customers concerned by the decision.

Wednesday's announcement came after client confusion and complaints circulated on social media in recent days. 

ING acknowledged that it had underestimated the impact of the information shared related to the closure of certain accounts and expressed its wish to share additional details.

"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," explained Michael Burch. 

ING assured that it was committed to "closely" accompanying the clients concerned and has taken several steps to support them. The bank said it has increased the number of people in its branches located in Ettelbruck, Esch-surAlzette, Strassen and Luxembourg-Gare to answer questions and explain the account transfer process. ING added that it has also strengthened its Contact Center team which handles incoming calls and messages. On its webpage, ING has published a section with information on how to close an account and related frequently asked questions: ing.lu/closure.

"We understand that the approaching summer holidays are a concern for many," noted Michael 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."

ING said that it would continue to develop additional measures to support impacted clients and to avoid any disruption of "essential" banking services.

Elaborating on its decision to move in a different direction, ING said it had seen  unmet client demand in Luxembourg for personal banking relationships and superior sector expertise. The bank feels it is well positioned to fulfil this need and to offer the services where it can "make a difference" for its clients. "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," explained Michael Burch.

With its dedicated offer for the investment fund industry, institutional clients and corporate clients, ING said it aims to remain a "leading" partner in wholesale banking. To become an established player in private banking, the bank is set to launch a differentiating service offering for private individuals with long-term investment needs.

ING has been active in Luxembourg since 1960, offering savings, investments, loans and mortgages for retail and private banking customers. For wholesale banking clients, the bank provides specialised lending, hedging solutions, payment and cash management, and fund services.