Dutch ING Bank sells UK online arm ING Direct to Barclays

Dutch banking group ING Groep NV (AMS:INGA) on Tuesday said it had agreed to shed its British online banking business ING Direct UK to Barclays Plc (LON:BARC), without disclosing the value of the transaction.

The move is part of ING’s ongoing business portfolio review, serving its strategy to sharpen banking focus, the vendor said.

The agreed terms call for ING to transfer ING Direct UK’s GBP10.9bn (USD17.5bn/EUR13.5bn) savings deposits and its GBP5.6bn mortgages to Barclays, with the buyer to integrate these operations into its retail and banking division in the UK.

In a comment, ING’s CEO Jan Hommen pointed out that ING Direct UK’s new owner will continue providing the same services to the unit’s 1.5m customers in the UK.

Set up in 2003, ING Direct UK has some 750 employees as at 31 August 2012.
Its current parent expects a capital release of around EUR330m and a transaction loss after tax of some EUR320m from the disposal, which it sees to have a neutral impact on its core Tier 1 ratio.

ING Bank will keep part of its UK investment portfolio worth EUR9bn as of 31 August 2012, while liquidating another part of it to facilitate the transaction. The deal will not affect the ING commercial banking operations in the UK, the vendor said.

Subject to regulatory approvals, the transfer if ING Direct UK’s operations is seen to complete in the second quarter of 2013.

Accenture inks 4-year pact to maintain banking apps for BBVA Chile

Management consulting, technology services and outsourcing company Accenture (NYSE: ACN) has signed a four-year agreement to maintain and enhance core banking applications for the Chile division of Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA).

Management consulting, technology services and outsourcing company Accenture (NYSE: ACN) has signed a four-year agreement to maintain and enhance core banking applications for the Chile division of Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA).

Accenture will maintain all of the technology applications that power the bank’s core operations, from deposits and checking to a full range of customer contact channels. BBVA Chile’s core banking platform is based upon Accenture’s Alnova Financial Solutions.

Core banking systems are sophisticated technology applications that support banks’ primary services from deposit gathering, lending and mortgages to checking, savings, ATM and credit card services, and online and mobile banking. They can also support a wide range of regulatory reporting and compliance functions for banks. BBVA Chile will be supported by Accenture Core Banking Services, which has helped design and implement core banking systems for more than 200 institutions globally. The Alnova software platform is an award winning core banking solution with more than 100 clients in more than 20 countries.

BBVA is a customer-centric global financial services group founded in 1857.