The ball is now in the court of ING’s individual customers in France. Boursorama, Société Générale’s online bank, and ING have announced the signing of a definitive partnership agreement “with a view to offering the best alternative banking solution to ING customers in France”. “This is a referral transaction for a large part of ING’s client business. Concretely, ING customers will be offered to join Boursorama and, if they consent, a transfer of personal data and a simplified process will be offered to them which will allow them to have an open account and a first virtual bank card in less a quarter of an hour, described at Agefi Benoît Grisoni, CEO of Boursorama.
In December 2021, ING announced its intention to leave France, leaving its customers in the dark behind the 500,000 active accounts on the individual side. The agreement signed with Boursorama concerns day-to-day banking with current accounts and cards, passbooks and securities and PEA accounts. “Boursorama Banque will offer up to 320 euros for the opening of a new account and the subscription of savings and stock market products, together with the transfer of its assets“, specify the two groups in a press release. ING customers who already have an account with Boursorama will also be eligible for these offers.
one year advanced
On the other hand, the agreement does not include ING’s credit portfolio in France, which will be managed in run-off by the Dutch bank. “At Boursorama, credit is more of a loyalty product than a loss leader. In addition, ING had set itself the objective of closing all active accounts in France by the end of 2022. A total banking merger, which takes 24 months on average, was complicated with this timetable and we were able to find a solution. alternative with ING so that customers have continuity of their loans until they expire», justifies Benoît Grisoni. Several sources reported during the entry into exclusive negotiations that the transaction should include a consideration of 100 million euros paid by Boursorama, including the cost of the acquisition of ING’s life insurance portfolio in France.
The takeover of ING’s customer portfolio should allow Boursorama to accelerate its strategy of conquest, while the costs of acquiring customers are increasing. “With our offer, we hope to recover at least 50% of the 500,000 ING customers still active in France.“, explains Benoît Grisoni. Boursorama, which claimed more than 3.3 million customers at the end of December 2021, is benefiting from strong organic growth. The subsidiary of Société Générale acquired 800,000 customers in 2021 alone. Since last November, more than 100,000 customers have joined it every month. Before closing this transaction, the online bank was targeting 4 million customers in 2023 and 4.5 million in 2025.
“The takeover of the ING portfolio could allow us to be more than a year ahead of our business objectives“says Benoît Grisoni. Boursorama, whose activity ceased to be profitable in 2015, also intends to return to profitability from 2024. Between 2021 and 2023, its conquest policy should generate a cumulative loss of 230 million euros in its accounts.
The takeover of ING’s client portfolio is not accompanied by any transfer of employees. A job protection plan (PSE) organizes the gradual departure of some 460 employees operating in retail banking out of a total of 700 employees in France. To which are added 56 layoffs as part of the end of the damage and health insurance distribution partnership between Axa and ING in France. The tricolor insurance group and the Dutch bank had started their collaboration on car insurance in Germany.
According to a source close to ING, this partnership had not yet materialized through the subscription of insurance products in France. Benoît Grisoni does not rule out offering Société Générale insurance products to ING clients who will join Boursorama. The online bank is also taking over the life insurance portfolio of ING Direct Vie, estimated at 5 billion euros in assets. “Boursorama like ING operate as brokers for the same insurer, Generali“, explains Benoît Grisoni. All contracts held by ING customers will thus be automatically transferred, while maintaining their tax precedence, to Boursorama Banque next July.