Is ING Direct here to stay?

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A Scotia-owned ING Direct may maintain its ties with the broker channel longer than many predicted, with the bank announcing it will work to double its customer base -- apparently without an expanded branch network.

Scotiabank is much more interested in the growth of our business than our current shareholders,” said Peter Aceto, CEO of ING Direct in a recent interview with a business news publication. “We just think about, what are the basic needs of the typical Canadian who doesn’t need a branch to do business.”

The disclosure of ING plans to introduce a credit card, discount brokerage services and unsecured lines of credit – without any mention of new branches – provides mortgage professionals with the first hint of good news about the lender’s ultimate decision to remain or to exit the channel. Brokers, however, continue to wait on a formal communication from either Scotia or ING since the August acquisition announcement, although Scotia has maintained it will operate ING Direct as a separate business.

Earlier this month, some veteran brokers expressed real concern that a Scotia-owned ING would likely “disappear in Canada” after 18 months.

That included a possible absorption ING’s broker services division into the Scotia operation.

  • KARIM LALJI on 2012-09-25 3:31:26 AM

    Why would any broker want to remain with anything owned by Scotia. Scotia Bank's philosophy is to get rid of the broker and arm their own sales force with cut rates and a list of broker expiring mortgages. If any broker wants to succeed look to guys like Boris at Merix, you might end up being more successful.

  • Bc Broker on 2012-09-25 8:02:24 AM

    Maple Trust anyone? Boris runs a great business and is a great guy. He is a real contributor to our industry.
    There is no doubt though that the industry is overly vulnerable to the big banks.
    They are consolidating the channel and a major fee cut will be next. Look at Australia for a glimpse of the future. Just sayin'

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