ING Bank: Facing Digital Disruption

Description

ING Groep NV, a successful Dutch-based bank with operations in over 40 countries, had a very successful year in 2016. The bank had achieved strong growth in customer numbers, savings, and lending. However, digitization was disrupting the banking industry. ING Groep NV had successfully taken multiple initiatives to tackle the fundamental changes driven by the digital disruption, but its future, like that of all the other major traditional banks, remained uncertain. In March 2017, the chief executive officer announced that the bank would invest €800 million in continued digital transformation to further improve the customer experience and accelerate growth. While there was no doubt that this investment was needed, he had to decide how ING should respond to and take advantage of the radical changes caused by digitization. Which specific initiatives should he prioritize for the €800 million investment?

Learning Objective

This case is appropriate for a business or corporate strategy course at both the undergraduate and graduate level, providing an ideal business setting to discuss the benefits and challenges associated with new digital technologies in the banking sector. It aims to give students an understanding of how new digital technologies may impact the further internationalization of banks. After working through the case and assignment questions, students will be able to do the following: ·Analyze the extent to which digital disruption has revolutionized the banking sector. ·Analyze the advantages and disadvantages of new digital technologies for banks. ·Explore the need for a bank’s strategy to be adjusted in view of digital disruption. ·Explore strategy in an environment that is deeply affected by digital transformation.

Keywords

banking digitization Internationalization