ING Bank invested in its digital infrastructure in 2023 and expects to reap the benefits of those tech advancements in 2024 as the bank plans to spend less on technology this year. 

The $967 billion, Netherlands-based bank can spend less on tech because it has optimized and automated its know-your-customer processes, reduced front office staff and branches, and reduced the need for overall digitization costs, Chief Financial Officer Tanate Phutrakul said today during the bank’s fourth-quarter earnings call.

The bank hopes the moves save 200 million euros ($217 million), Phutrakul said, noting, “It’s really about digitizing the core operations of ING.” 

The bank expects to spend less on incidental costs related to restructuring and further digitization of its branch network, according to the earnings report. ING spent $32 million on branch-related incidental costs in Q4, down from $50 million in Q3. 

BIGGER PICTURE: The bank’s cost-saving efforts are similar to those of Deutsche Bank. 

The bank, based in Frankfurt, Germany, plans to trim 3,500 jobs in the coming years and saw its number of branches fall 7% year over year as consumers pivot to digital banking, according to Deutsche Bank’s earnings reports. 

BY THE NUMBERS: ING Bank reported for 2023: 

• Share of mobile-only customers reached 62%, up from 58% in 2022; 
• Customer growth reached 750,000 up from 585,000 in 2022; and 
• Operating expenses increased 17% YoY to $1.13 billion. 

NOTEWORTHY: ING is exploring generative AI uses for coding and to enhance customer experience, Bahadir Yilmaz, chief analytics officer at ING, previously told Bank Automation News.  

The bank also aims to use AI for: 

• Lending operations; 
• Client servicing; and  
• Personalization of services. 

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Editor’s Note: All figures have been converted to U.S. dollars.

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