Company Snapshot

ING Direct is a leading online bank focused on the consumer market.
It is best known for its high interest savings rates and orange colored branding and marketing. ING Direct is a subsidiary of ING in Holland, one of the world's largest financial services institutions, with 119,000 employees in 50 countries and over US $600 billion of banking and insurance assets.

Blue Ocean Strategic Move

ING first launched ING Direct in Toronto, Canada in 1997 and based on success there opened in the U.S. in 2000. Unlike traditional savings banks struggling to compete in a Red Ocean, ING Direct made a move into Blue Ocean market space by offering consumers superior interest rates on their savings with no fees, no minimum balances, minimal hassle, and a great customer experience. The bank eliminated expensive branches and ATMs, and set up efficient operations to interact with customers online, by phone, and by mail. To reach beyond existing demand, ING made significant marketing investments, built awareness through public service and community activities, and opened Cafes to help traditional banking customers learn about Internet banking. The bank pushed to simultaneously pursue differentiation and a low-cost operating model.

Success

ING Direct has become the largest direct bank in the world with 18.7 million customers in nine countries and growing. In 2006, the company attracted about 3 million new customers and grew pre-tax profit by 16.2% to EUR 717 million on total income of EUR 2.396 billion. With direct banking competition increasing, ING Direct continues to lead through its superior execution and principle-focused growth.