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| ING to cut 5,800 jobs in digital plan | ING to cut 5,800 jobs in digital plan |
| (35 minutes later) | |
| Dutch bank ING says it intends to cut about 5,800 jobs in Belgium and the Netherlands over the next five years as part of a cost-cutting plan. | Dutch bank ING says it intends to cut about 5,800 jobs in Belgium and the Netherlands over the next five years as part of a cost-cutting plan. |
| The bank said the aim was to speed up the adoption of new technology and "continue to lead in digital banking". | The bank said the aim was to speed up the adoption of new technology and "continue to lead in digital banking". |
| It said 3,500 jobs would go in Belgium and 2,300 in the Netherlands. It expects to make savings of €900m (£780m; $1bn) a year. | It said 3,500 jobs would go in Belgium and 2,300 in the Netherlands. It expects to make savings of €900m (£780m; $1bn) a year. |
| ING said it was setting aside €1.1bn to pay for redundancies. | ING said it was setting aside €1.1bn to pay for redundancies. |
| The bank currently employs 51,833 people. | The bank currently employs 51,833 people. |
| ING chief executive Ralph Hamers said that all in all, over the coming five years, about 7,000 jobs might be "impacted", including 950 positions employed by external suppliers. | |
| New technology | |
| "Customers are increasingly digital and bank with us more and more through mobile devices," said Mr Hamers. | |
| "Their needs and expectations are the same, all over the world, and they expect us to adopt new technology as fast as companies in other sectors. | "Their needs and expectations are the same, all over the world, and they expect us to adopt new technology as fast as companies in other sectors. |
| "In order to continue to lead in digital banking, we need to offer a better customer experience, that's instant, personal, frictionless and relevant." | "In order to continue to lead in digital banking, we need to offer a better customer experience, that's instant, personal, frictionless and relevant." |
| He added: "From 2016 to 2021, we intend to invest €800m in our digital transformation, building a scalable platform to cater for continued commercial growth, an improved customer experience and a quicker delivery of new products." | He added: "From 2016 to 2021, we intend to invest €800m in our digital transformation, building a scalable platform to cater for continued commercial growth, an improved customer experience and a quicker delivery of new products." |
| Last week, Germany's second-biggest lender, Commerzbank, said it was planning to cut 9,600 jobs over the next four years and end dividend payments for the first time. | |
| Big banks in general are facing challenges from new competition and the higher cost of new regulations, while at the same time, ultra-low interest rates are hitting profits. |