Tuesday Sep 2, 2014

ING Direct Potentially Introducing a Credit Card to Clients

7 May 2011

While scrolling through Moneyville I came across an interesting article where it revealed news that ING Direct Canada is contemplating introducing a credit card.

Peter Aceto, President and Chief Executive Officer explained that customers are asking about credit cards, and they are considering introducing one.

This would be a huge step for ING Direct, especially when it at first only offered saving accounts with a higher interest rate that its competitors.

ING continues to approach customers in a unique method as they continue to still not offer branches.  Customers can access their funds through the telephone, internet and ABM’s. ING does offer Café’s, which allows customers to come in and get their banking done, however even then it is still done electronically.

ING recently opened a new state of the art Café in Toronto, which combines a Starbucks and Apple Store all in one location. Customers can enjoy a cup of coffee while get go on an iPad 2 to get their banking done.

What will happen if a Credit Card is added to ING Direct?

With a potential credit card lurking around the corner it makes me wonder if it is the best move for ING.

ING’s motto is “Save Your Money”; with that in mind how would a credit card help anyone save their money?

Realistically, when someone gets a credit card, more often than not we find ourselves getting into some debt before we learn how to properly manage it. It is a lesson that we all try to avoid, but for most it is inevitable.

Personally, I would not want to see a credit card anytime soon seeing as it takes away from the whole concept of saving. I love ING’s current banking system, that is not to say that I would be closed for improvements. I think that having a credit card added into the mix might hinder many people as they try to save.

Do not get me wrong, having a credit card will complete ING in the aspect that people can get all they need from the bank, especially with the introduction of the THRiVE chequing account last year.

The THRiVE chequing account is a no fee chequing account that clients across the country were all looking for, and ING produced it, pleasing many clients.

ING Direct is expected to offer a home equity line of credit late this year, which only goes to show that ING will continue to introduce products that customers are asking for.

ING does what it can to please their clients, and if clients are asking for credit cards, it is only a matter of time before ING introduces one. I only hope that people can manage their spending, and be able to still save their money, while maintaining a balance between their credit.

image source: niallkennedy

About the Author

Sensei

My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top. I love everything there is about Canada and everything financially related to Canadians. I write deily posts from Canadian Banks to Credit Card information.

Comments (8 )



Doug Wrote:

I disagree with you. I think a credit card, whether it be a Visa or a MasterCard, could potentially be a game-changer and a huge way to further increase ING’s so-called “share of wallet” (that is, bank speak for the percentage of your banking business they “own”). It’s true that banks make money off of lending to you, but they also make money off your savings. A credit card offering would only help with making money for ING in terms of widening the “interest rate spread” (difference between what they lend at and what they pay deposits at).

If they were to launch a no annual fee credit card with a low interest rate option (say, between 9-12%, comparable to or slightly higher than an unsecured personal line of credit from a chartered bank) with limited or no other “service fees” (i.e., convenience cheque usage or cash advance fees) coupled with say, a 2% Cash Back Rewards program, I think they have the potential of at least taking away significant market share away from the likes of Canadian Tire Bank or Wal-Mart Canada Bank credit card products.

Cheers,
Doug

[Reply]

Dmitri Wrote:

I hope ING does introduce a Credit Card. And when they do, I also want them to consider the interests of retailers, and possibly break the evil loop of charging retailer a % of the purchase price and then sharing part of it with a consumer in the form of the Cash Back. I think this is an unfair game, and I’m not even a retailer myself.

I also disagree with the author of the above article when it comes to his opinion that credit cards equal debt. In my opinion, credit cards are an essential part of life now, even if you don’t carry debt at all. Just think online shopping, or building of a credit score. I think it is that group of people that is asking ING to come out with a credit card. I’m one of those people, and I don’t care what the interest rate on the card is. But ING, when you finally do come out with a credit card, please make an option available that automatically pays off the balance at the end of the month from an adjacent Thrive.

[Reply]

Sensei Wrote:

Do not get me wrong, introducing a credit card would definitely be a great move for ING, especially since they can attract many customers looking to complete their wallet.

Credit cards are definitely essential to out daily lives, but the point I was looking to make was that we tend to see people get overwhelmed with the idea of having money at their disposal that they do not worry about the consequences. The idea of having a credit card = debt is aimed mainly at younger generations who do may not be able to manage their finances well.

Dmitri, you are completely correct that the group of people asking for a credit card are like you, they are simply looking for a credit card to build their credit score, and possibly have an outlet to do things such as online shopping.

[Reply]

Yvonne Wrote:

I can’t wait for the LOC that is supposed to come out, and once they have the Credit Card, Visa or Master Card. . . . I’ll be one of the first to sign up. Then I be able to have all my banking done at one bank . . . . I need points though . . . . I want to travel with my points, so they are very important to me, so please offer points.

Just because ING has a credit card doesn’t mean that we can’t save my money . . . . Not everyone misuses credit cards. I don’t misuse the other credit cards I have, so why would I misuse this one ? ? ? ?

HURRY ING . . . . GET THAT FULL BANKING STUFF GOING . . . . everything else I have is at ING or is on it’s way to being moved over to them.

[Reply]

Sensei Reply:

I am with you, I cannot wait to see what ING will be offering with their first credit card. It will definitely be great for many people who already bank with ING to be able to have all of their banking products at one bank.

[Reply]

Hugo Triptoph Wrote:

Although I can see your point regarding ING’s image of promoting savings, I’d bet that virtually every single one of their customers already does have a credit card anyway. It’s just that their credit card is with a different financial institution.

If they’re going to have a card anyway, it might as well be with ING.

My situation is that I’ve just closed my Royal Bank savings account and now all I have with them is my Visa. If I could get a Visa with ING, I can cut all ties with RBC. Why? Because they charge me $4 per month to have a savings account, and pay no interest. Since Thrive came out, I have no need for any other bank. When it comes time to renew my mortgage, I’ll be going with ING as well.

[Reply]

Adriano Ferrari Reply:

Hi Hugo,

I am in the process of closing everything at Royal Bank (except Visa), and moving to ING. You said “all you have left is Visa” with RBC… does that mean you are able to pay for your Visa through ING’s chequing account? If so, how?

Thanks!
Adriano

PS: I do think ING needs a credit card option, but it would be a better fit for them if they introduced a “Visa Debit” or similar.

[Reply]

Adriano Ferrari Reply:

(Oops: found the answer just after asking, as usually happens. Just add “Royal Bank Visa” to your Payees)

[Reply]

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