ING Luxembourg has agreed to transfer approximately 18,000 retail clients with basic daily banking needs to BGL BNP Paribas. This move comes as part of ING’s strategic pivot to focus on private banking and wholesale banking services, a shift announced earlier this year.
The referral arrangement offers affected clients an exclusive onboarding package with BGL BNP Paribas, including simplified account opening processes and special terms. ING said it will contact these clients gradually over the coming months, with the transition expected to be completed by summer 2025.
This development follows ING’s decision in May to exit mass retail banking in Luxembourg, citing a lack of sustainable growth prospects. Michael Burch, ING Luxembourg’s CEO, said at the time that the bank would instead focus on personal and private banking services, where it sees “unmet client demand” for specialised expertise.
“We are fully confident that BGL BNP Paribas offers the highly regarded services that our clients value,” Burch said in a statement. “We will continue to deliver personalised and specialised services to our personal and private banking clients, and clients with long-term investment needs. At the same time, we remain ING’s global center of expertise for fund management, and we are further strengthening our services for our wholesale banking clients.”
Government intervention
ING’s withdrawal from mass retail banking initially affected between 50,000 and 80,000 accounts, leaving many clients uncertain about their financial arrangements and prompting intervention by both the Luxembourg finance minister and the financial sector trade union Aleba.
Burch described the agreement with BGL BNP Paribas as a necessary step to ensure an alternative for clients affected by the shift. However, earlier missteps in communicating the strategy caused frustration among customers. Social media posts in May highlighted abrupt account closure messages from ING, which drew criticism and calls for clear communication from regulators and politicians alike.
‘Customers with potential’ only
The financial sector union Aleba had criticised ING for prioritising profitability over retail clients, accusing the bank of retaining only those deemed “customers with potential,” defined as earning at least 5,000 euros per month or holding 50,000 euros in savings.
Politicians such as CSV’s Laurent Mosar expressed concerns over the potential reputational damage to Luxembourg’s financial centre and questioned whether ING’s actions complied with fair treatment principles for clients.
While ING’s strategic shift marks a narrowing of its focus, the bank said it remains committed to its wholesale banking operations and private banking services. It continues to position itself as a significant player in Luxembourg’s financial ecosystem, where it has been active since 1960.
BGL BNP Paribas, in turn, has assured a smooth transition for incoming clients. Béatrice Belorgey, chair of BGL BNP Paribas’ executive committee, emphasised her team’s readiness to support new clients with digital solutions and a broad range of banking services.