ING Direct: A Brief History and the Capital One Acquisition


Triston Martin

Feb 15, 2024

ING Bank launched ING Direct, a branchless banking service in the Netherlands. As of 2000, ING's free internet banking, high-yield checking, and savings accounts became available in the United States for the first time. In 2012, Capital One purchased ING Direct and renamed Capital One 360.

History of ING Direct

Younger clients who could start a no-fee account with as little as $1 to deposit found ING Direct to be an enticing alternative because of its lower interest rates and the absence of the bank's brick-and-mortar overheads. An ING Direct checking account was dubbed Electric Orange since the company's logo included a giant orange ball.

ING Direct, a savvy marketer that knew its consumers like the back of their hand, began opening customer service locations in critical cities just when the financial markets were collapsing. As of December 31, 2011, ING Direct has almost $83 billion in deposits with more than 7.6 million American savers.

Capital One Buys ING Direct

For $6.3 billion in cash and 54 million shares of Capital One, Capital One purchased ING Direct from ING Group in February 2012 for a 9.7 percent ownership position. All accounts were renamed to Capital One 360 accounts after the change.

Experience in Banking

According to the J.D. Power 2019 Direct Banking Satisfaction Study, Capital One's mobile app came out top. However, in the same study, the bank had a dismal overall score, coming in seventh out of eight places. This may not be the best option for you if you prefer to deal with your banker in person rather than over the phone.

Several states have Capital One Cafes, including financial education, account opening, community gatherings, and coffee. They can be used by anybody, even if they aren't a customer. There are just a few places where the corporation has a full-service brick-and-mortar location, and the bank continues to announce branch closures as part of a broader banking sector trend.

Which of the Digital Banks from ING and CIMB is Better?

For Filipinos, online banking is nothing new. You may now do virtually all of your banking activities online, thanks to the widespread use of cutting-edge technology at most commercial banks. You don't have to stand in line to transfer money or pay your bills, do you? There are certain drawbacks to internet banking, where digital banking comes into play.

Full Digital Banking at ING and CIMB

To create a savings or checking account, you must still go to the bank, which is one of the drawbacks of internet banking. Forms and paperwork must be filled out and submitted, and acceptable I.D.s. Deposits are also necessary. Only then will you be able to access the bank's website and mobile banking app with your login credentials.

Digital banks, on the other hand, eliminate the need for in-person interactions with bankers, as well as the time wasted in traffic and standing in line to create an account. You may open a report from the comfort of your own home using the same approach. It's all digital these days.

An Overview of Digital Banking with ING Philippines

Since its establishment in the Philippines in 1990, ING has been a leading global financial institution. It operates in more than 40 countries and claims to be the first to pioneer branchless banking.

It is possible to create an ING account via the ING mobile app and experience the benefits of digital banking without having to visit a branch. Search for "ING Philippines" in the App Store or Google Play Store to get started with ING digital banking.

An Overview of CIMB Bank's Digital Banking

CIMB Bank Philippines Inc., based in Malaysia, commenced business in December last year. The Philippines is CIMB's eleventh and final milestone in the ASEAN area. Its goal is to give Filipinos a safe, digital banking experience that is mobile-first and available round-the-clock, 365 days a year.

There are three different types of savings accounts offered by CIMB, all of which provide more excellent annual interest rates than those provided by the local commercial banks. There are no transaction fees and no need to make an initial deposit because GSave has joined with GCash.

ING versus CIMB Bank: COVID-19 Digital Banking

Both ING and CIMB digital banks do away with the traditional savings account opening by allowing customers to apply online. There are no waits, no written forms to fill out, no balance to maintain, and no transaction fees because all services are available through their smartphone app.

It is safer and faster to conduct financial transactions online during this COVID-19 pandemic and Enhanced Community Quarantine. Both digital banks provide this necessary service for customers who do not wish to go to a physical location.

Which Online Bank is Best? ING vs. CIMB, Which is Better?

A digital bank account can be opened for many different reasons. ING's mobile app is a fantastic starting point for anyone looking to save money and deposit checks while still earning a high-interest rate. CIMB offers various services, one of which is the ability to pay invoices.

When you create an UpSave account, you may receive a 4% interest rate on all of your deposits. However, you should periodically review their terms and conditions before they undergo any modifications.

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