Business | Banking
ING loses online banking market to emerging global players
Citigroup Inc, HSBC Holdings Plc and Washington Mutual Inc are attracting more customers to their high-yielding online savings accounts at the expense of longtime market leader ING Group NV's ING Direct, data show.
- Reuters
- Published: 00:00 February 22, 2007
New York: Citigroup Inc, HSBC Holdings Plc and Washington Mutual Inc are attracting more customers to their high-yielding online savings accounts at the expense of longtime market leader ING Group NV's ING Direct, data show.
Data from comScore Networks, a web audience measurement firm, show that ING Direct's share of submitted applications among six major online account providers tumbled to 25 per cent in the fourth quarter from 53 per cent a year earlier.
In contrast, market share rose to 19 per cent from two per cent at Citibank Direct, to 21 per cent from 14 per cent at HSBC Direct, and to 17 per cent from zero at Washington Mutual.
Market share fell to 12 per cent from 22 per cent at Emigrant Direct, part of New York's Emigrant Savings Bank, and to eight per cent from 10 per cent at Capital One Financial Corp.
Percentages don't add to a perfect 100 because of rounding.
Yield
ING Direct is offering a 4.5 per cent yield to online depositors this week while Citibank is offering 4.75 per cent, Capital One and Washington Mutual 5.00 per cent, and Emigrant and HSBC 5.05 per cent, according to data published on the companies' websites.
The applications data suggest that ING Direct may have decided to compete for new deposits less aggressively as more rivals enter the business.
ING Direct said assets grew 17 per cent last year to 89.2 billion euros ($117.2 billion).
"ING invented the market, but it is an online bank only," said Brian Jurutka, director of financial services solutions at Reston, Virginia-based comScore.
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