ING Bank is improving its digital capabilities and offerings as it posted growing mobile banking adoption in the first quarter. 

The bank is prioritizing delivering “a superior customized digital experience that is personal, easy, relevant and instant,” Chief Executive Steven van Rijswijk said during the digital bank’s first-quarter earnings call today.

The Amsterdam-based bank reported that 62% of its Q1 customers were mobile-only, compared to 57% in Q1 2023. ING reported 15.4 million total customers in Q1 comparedwith 14.7 million in Q1 2023. 

In Q1, ING launched: 

• Instant app verification identifying an ING employee who is calling a client, to reduce fraud; 
• Instant digital overdraft protection for business banking customers; and 
• In-app access to portfolio insight for wholesale customers. 

THE BIG PICTURE: Other financial institutions are also rolling out digital products and features to provide a better user experience to customers.  

Mastercard and Visa rolled out AI-driven fraud solutions during the first quarter. Mastercard launched Decision Intelligence, which helps banks score and approve transactions, and Visa launched Visa Protect, designed for account-to-account payments. 

Major financial institutions and tech giants including IBM, HSBC and PayPal on April 25 created the Work Group on Quantum-Safe Cryptography to study policy and regulation and develop technology to enhance the protection of payment rails. 

BY THE NUMBERS: In Q1, the bank reported: 

• Net interest income of 3.8 billion euros ($4 billion), down 4.7% year over year; 
• Total income of $5.8 billion, up 0.3% YoY; and 
• Customer deposits of $721 million, up 2.2% YoY. 

OF NOTE: Similar to its European peers, including Barclays, Lloyds and NatWest, ING is looking to reduce costs. 

Operating costs increased 5% YoY to $3.2 billion in Q1, driven by the impact of inflation, staff expenses and implementation of the Danske Bank ruling, which now taxes interbank transactions as well, van Rijswijk said. 

The $987 billion bank reported 60,000 employees in Q1, compared with 58,000 in Q1 2023. 

FORWARD LOOK: As ING looks to trim costs and digitalize operations for efficiency, it also is looking to M&A as it sees revenue and business opportunities in the market, similar to Goldman Sachs and Morgan Stanley. 

The bank will look for acquisitions if they fit “into our culture and our digital operations,” van Rijswijk said. 

Goldman Sachs and Morgan Stanley also expect M&A activity to pick up this year and expect higher revenue due to fees incurred from such transactions. 

Editor’s note: All amounts have been converted to U.S. dollars. 

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