How Does ING Groep Company Work?

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How does ING Groep create value for 37 million customers?

In 2024, ING Groep scaled a digital-first banking model, driving strong net interest income and disciplined capital returns while expanding mobile-led retail across Europe. The bank serves over 37 million retail customers across 40+ countries with a high‑NPS, no‑frills approach.

ING combines digital retail banking, pan‑European wholesale services and tight capital management to generate interest and fee income; its ING Groep Porter's Five Forces Analysis explains competitive dynamics and margin drivers.

ING Groep operates a technology-led universal banking platform across retail, business and wholesale banking in core European and growth markets, focusing on simple products, transparent pricing and a mobile-first experience that drives high digital adoption and cost efficiency.

Retail banking

Current and savings accounts, mortgages, consumer loans, payments and basic investments delivered primarily via mobile app; digital sales penetration exceeds 60% for new products in core markets.

Business banking

SME and mid-cap lending, cash management and trade services with sector-focused relationship teams; distribution blends digital interfaces and targeted local coverage.

Wholesale banking

Lending, transaction banking, financial markets and advisory using a strong balance sheet and risk distribution via syndication, originate-to-distribute and securitization to improve capital efficiency.

Technology & platforms

Modular stack of APIs, microservices and cloud-hosted platforms, centralized risk and data platforms, and shared service centers that helped keep cost-to-income in the low 50s% in 2024.

Payments and daily banking run on scalable instant-payments and PSD2-enabled rails, enabling cross-sell of savings, investments and insurance through partnerships and fintech integrations.

Key differentiators and metrics

ING combines a consistent digital UX, prudent risk management and leadership in sustainable finance to capture deposits, fees and loan spreads at scale across core markets.

• Mobile app adoption exceeds 90% of active retail customers in core markets
• Stage 3 non-performing loan ratios around 1.3–1.5%, reflecting conservative credit practice
• Tens of billions of euros facilitated annually in sustainable loans and bonds
• Extensive partner ecosystem: fintechs for embedded finance and robo-advice, utilities for clearing/custody and major card schemes

For context on corporate purpose and values that shape product design and distribution see Mission, Vision & Core Values of ING Groep

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Revenue Streams and Monetization Strategies for ING Groep center on banking fundamentals: interest margins from lending and deposits, diversified fee income from payments and investment services, plus smaller trading and valuation gains; the Benelux retail base and German/Polish digital scale anchor earnings while wholesale is spread across Europe.

Net Interest Income (NII)

NII was the dominant income source in 2024, accounting for roughly 70–75% of total income, driven by retail mortgages, consumer and SME lending, and wholesale loans.

Deposit and Margin Management

High share of low/no‑fee current accounts and active deposit beta management supported margins as deposit repricing lagged asset yield moves in 2023–2024.

Fee and Commission Income

Fees represented about 20–25% of income in 2024 from payments, investment product distribution, asset gathering, cards/interchange, and wholesale transaction services.

Payments and Investment Growth

Payments volumes grew high single digits in 2024; investment fees expanded with rising AuM as rates stabilized, improving the fee mix versus prior years.

Financial Markets & Other Income

Trading, structuring, hedging and valuation effects made up a low- to mid‑single-digit share of total income, including incidental gains/losses in 2024.

Geographic and Segment Mix

Benelux remains the earnings anchor; Germany and Poland drive digital retail scale, while wholesale revenues are diversified across Europe and selective global hubs. See market focus in Target Market of ING Groep.

Monetization tactics and recent trends emphasize pricing, bundling and capital‑light distribution to offset potential NII normalization.

Key Monetization Tactics

ING Groep deploys several revenue-enhancement levers across retail, SME and wholesale channels to sustain returns and diversify income.

• Tiered savings and dynamic mortgage pricing capture rate moves and preserve net interest margins.
• Bundled daily banking packages convert free accounts into cross-sell funnels for loans, insurance and investments.
• Platform and interchange fees monetize payments scale; card and merchant services boost fee income.
• Capital-light distribution via partners for insurance and investment products expands reach without heavy balance-sheet use.

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Key milestones include rapid digital scale-up, strengthened capital with CET1 near 14% in 2024, and a clear pivot toward sustainable finance and wholesale discipline, underpinning ING Groep's competitive edge across Europe.

Digital Scale-Up

Migration to cloud and modular platforms lifted digital sales above 60%, cutting time-to-yes for retail credit and SME lending materially.

Capital Strength

CET1 hovered around 14% in 2024 with progressive dividends and buybacks supported by disciplined RWA management and solid profitability.

Sustainable Finance

Growth in sustainable lending and underwriting, with portfolio steering aligned to net-zero pathways in carbon-intensive sectors, improved client access to green funding.

Wholesale Banking Discipline

Originate-to-distribute and risk-transfer strategies increased capital velocity, helping to mitigate concentration and cycle risk in wholesale portfolios.

Market headwinds—including higher funding costs—were managed through proactive deposit repricing, conservative mortgage LTVs in core markets, and strict underwriting that kept Stage 3 loans low despite 2023–2024 macro volatility; the bank also balanced funding mix with a diversified deposit base.

Competitive Edge and Strategic Moves

Competitive strengths combine a pan-European brand with high NPS, cost-efficient digital operations, strong risk management, and sustainability credentials that attract corporate and retail clients.

• High digital sales mix (>60%) and faster origination cycles improve customer conversion and cost-to-serve.
• 14% CET1 in 2024 supports dividends and buybacks while preserving regulatory buffers.
• Sustainable finance growth and net-zero portfolio steering enhance relevance for corporates in carbon-intensive sectors.
• Wholesale risk transfer and diversified deposits reduce concentration and funding volatility.

For context on the group's evolution and structure see Brief History of ING Groep, which complements this overview of how ING Groep works, its business model, and strategic priorities such as ING banking model, ING business structure, and ING sustainability and ESG initiatives ING.

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ING Groep holds leading retail positions in the Netherlands and Belgium, is a top digital bank in Germany and Poland, and ranks among Europe’s notable wholesale banks in transaction services and syndicated lending, supporting client loyalty via primary-account focus and intuitive apps.

Industry Position

ING combines strong retail franchises in core markets with a scaled wholesale platform: retail deposits and digital engagement underpin funding, while transaction banking and syndicated lending serve multinational corporates.

Market Share & Reach

As of 2024–H1 2025, ING reported over 60 million customers globally and a CET1 ratio near its 13–14% target, reflecting capital strength across retail and wholesale operations.

Key Risks

Principal risks include net interest income volatility, deposit competition, credit stress in SMEs and cyclical sectors, regulatory shifts, cyber/operational incidents, and geopolitical/FX impacts on wholesale flows.

Risk Metrics

Stress scenarios show sensitivity to a 100bp downward rate shock and deposit re-pricing pressures from neobanks and money-market funds; Stage 3 coverage and provisions remained conservative in 2024, supporting resilience.

Management outlook focuses on sustaining double-digit RoE through-cycle via cost discipline, diversified fees, and capital returns anchored by a CET1 of roughly 13–14% while balancing growth and prudence.

Future Outlook & Strategy (2025 priorities)

Strategic priorities emphasize personalized digital engagement, expanded investment and insurance distribution, scaling sustainable finance solutions, and capital-efficient wholesale origination to shift revenue mix toward recurring fees.

• Cost reduction via automation and shared platforms to protect RoE.
• Fee-growth targets in payments, asset management and insurance distribution.
• Maintain stable credit quality with targeted SME and sector exposure controls.
• Capital returns and buffer management consistent with a 13–14% CET1 objective.

See a detailed breakdown of Revenue Streams & Business Model of ING Groep for complementary detail: Revenue Streams & Business Model of ING Groep

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