Following weeks of speculation what ING's plans were with private clients, the bank has now officially confirmed in writing it is ending retail banking services for all private customers.
"We have concluded that, for us, there is no realistic path towards sustainable growth in the foreseeable future in Mass Retail Banking in Luxembourg,” says Michael Burch, CEO of ING in Luxembourg, in a press release.
The statement further reads that the bank acknowledges it had "underestimated the impact of the communication" and now wishes to share more details into why accounts are being closed.
ING Luxembourg will now only focus on Wholesale Banking, which is meant for larger clients, such as corporations, government agencies, real estate developers or financial institutions.
The standard procedure would be to block closed accounts after two months, but in this case they will remain accessible to enable customers to switch to another bank, the CEO clarifies. It has also increased staff numbers at its branches in Ettelbruck, Esch, Strassen and Luxembourg Gare.
Unilateral closures
In the last weeks, numerous private clients reported via social media and forums that their accounts had been unilaterally closed, with ING asking them to switch their accounts to another bank in Luxembourg.
Reports indicate widespread outrage over the bank's handling of the situation. One long-time customer shared on social media, "I've been a client for 12 years, my salary is deposited here, and I have a savings account, yet they closed my accounts."
On Tuesday, finance minister Gilles Roth met with the CEO and urged ING Luxembourg to provide a "proper solution" for clients facing sudden account closures, as the Financial Sector Supervisory Commission CSSF closely monitors the developing situation.
In 2023, ING employed around 1,000 people in Luxembourg.
Last February, the Dutch banking giant announced that its net profit had nearly doubled in 2023, reaching €7.29 billion, thanks to the "rapid rise in interest rates and a favourable economic environment." In the same year, ING welcomed 750,000 new customers, primarily in Germany, Spain, and the Netherlands, and had a total of 15.3 million customers worldwide.
