Current Situation

In France, ING is facing significant challenges as it withdraws from the retail banking sector. Many of its French clients have seen their accounts closed unexpectedly over the summer.

Background and Initial Announcements

ING officially announced in December 2021 that it would exit France’s retail banking market. The bank then partnered with Boursorama, a French online bank, in April 2022, as part of the transition process. Through this agreement, ING planned to transfer its customer base and life-insurance accounts worth around EUR 5 billion to Boursorama. Additionally, current-account holders who opted for a switch were eligible for a bonus ranging from EUR 0 to 320.

As of the beginning of July, approximately 200,000 customers had already moved to Boursorama, according to reported figures by Le Figaro. The remaining clients would face longer delays due to ING’s winding-up procedures, which began in earnest over the summer months.

These abrupt closures caused significant inconvenience, with some receiving only a few days’ notice via various forms of communication—registered letters, emails, or simple correspondence.

Impact on Other Banks

The swift transition posed challenges not just for ING’s clients but also for other financial institutions. Clément Vernhes, the director of BNP Paribas Foch Maillot in Paris, highlighted difficulties meeting deadlines imposed by ING.

Regulatory and Economic Challenges

According to French law, individuals holding regulated savings products cannot switch accounts until their current ones are closed. This has left many savers without interest during the transition period.

Holders of security accounts or Share Saving Plans (PEA) at ING were advised that if they did not request transfer or closure, ING would proceed to close these accounts and sell securities according to its terms and conditions. The lack of flexibility has caused considerable financial strain for many individuals.

Collective Action

The multiple issues arising from ING’s departure have led to collective action organized by France Conso Banque, an organization representing consumer interests in the banking sector. Michel Guillaud, the president of this group and a direct affected party, has spearheaded these efforts.

With about 1 million clients and around 700 employees—two-thirds working in retail—the departure of ING from France’s market will have far-reaching economic implications for both customers and staff. Despite its recent profitable quarter where it reported pre-tax profits of EUR 1.74 billion, the situation remains complex and fraught with challenges.