Ing Direct Continues Assertive Ascent
The Age
Thursday April 6, 2006
AUSTRALIAN bank fees are higher and more complex than their European counterparts, the new chief of ING Direct Australia, Eric Drok, said, after he unveiled a 35 per cent jump in annual profit to $122.4 million.
ING Direct is a branchless bank offering savings accounts paying high interest rates, accessed via the internet, and cheap mortgages. Mr Drok, a Netherlands native who relocated to Australia two months ago to take the top local spot in ING Direct's growing global franchise, criticised Australia's major banks for over-complexity and lack of transparency in fee-setting. "I was shocked by the transaction fees in this country," Mr Drok said, observing that European banks were more likely to offer an all-in-one monthly fee. "I'm not really impressed with the banking system if you compare it with Europe."Mr Drok said that Australian online banking web sites were relatively crude by international standards. Mr Drok said he had also been struck by Australia's low savings rate. "Australians are awful savers," he said, observing that consumers were more likely to plough their money into a mortgage than into a savings account. And testament to the nation's love affair with property and appetite for debt, ING Direct's mortgage loan book has grown faster here than in any of its other offshoots, including Canada, UK, Spain, Italy, Germany and France, he said. Only in Australia had ING Direct's mortgage book grown to exceed its savings deposits, he said. The annual figures show ING Direct's savings deposits swelled 13 per cent to $16.7 billion last year, while its retail mortgage loan book jumped 27 per cent to $20.9 billion. ING Direct has made an aggressive play in the Australian market since it opened in 1999, surpassing 1 million customers last year. But Mr Drok confirmed ING Direct would not be opening any branches in Australia. He said the company was considering new retail products, but ruled out credit cards and reverse mortgages.
© 2006 The Age
