(ING) ING Groep N.V. Porters Five Forces Research |
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Suppliers Bargaining Power
Wholesale funding sources
ING Groep N.V. taps capital markets, interbank lines, and wholesale deposits for part of funding, so supplier power can rise when markets tighten. In 2025, its 38 million customer base and broad retail deposit mix softened that risk, reducing reliance on any single provider. Still, large institutional lenders can push spreads higher in stressed periods. ING’s scale helps, but pricing power can shift fast.
Technology and cloud vendors
Core banking, cybersecurity, payments, and cloud vendors can still pressure ING Groep N.V., because integration and migration costs are high. But ING’s 2025 scale, with tens of millions of customers and a large in-house tech base, plus multi-vendor sourcing, helps curb that leverage and keeps supplier power moderate.
Payment network partners
Card schemes, clearing houses, and payment rails like SEPA and SWIFT are core suppliers for ING Groep N.V.'s payments business. Their fee rules and technical standards shape transaction costs and timing, so ING cannot fully bypass them. Still, ING's large scale gives it some pricing power when negotiating network terms and routing volumes.
Skilled labor and talent
Skilled labor is a real supplier bottleneck for ING Groep N.V. Banking still needs scarce risk, compliance, data, and digital engineering talent, and tight labor markets can lift pay and retention costs. ING’s scale helps: it reported 60,000+ employees and uses global hiring, a strong brand, and internal mobility to ease wage pressure.
- Scarce talent raises supplier power.
- Pay and retention costs can rise fast.
- Global hiring softens local shortages.
- Internal moves help keep key skills.
Regulatory and compliance service providers
Regulatory and compliance service providers have moderate bargaining power at Company Name. External consultants, auditors, and legal advisers are vital for rule changes, but their work is often pricey and switching fast can be hard. Still, the market is crowded, so Company Name can split mandates across several firms and keep pricing pressure in check.
- Hard to replace niche experts quickly
- High fees during regulatory change
- Multiple firms keep options open
ING’s Supplier Power Stays Moderate Despite Key Cost Pressure Points
ING Groep N.V. has moderate supplier power overall: its 2025 base of 38 million customers and 60,000+ staff cut funding and talent dependence, but banks, cloud, payment rails, and niche compliance vendors can still raise costs when switching is hard.
| Supplier set | Power | 2025 proof point |
|---|---|---|
| Funding providers | Moderate | 38 million customers |
| Tech and cloud vendors | Moderate | Large in-house tech base |
| Skilled labor | Moderate-high | 60,000+ employees |
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Customers Bargaining Power
Retail deposit customers
Retail deposit customers have real pricing power because they can move savings quickly when banks pay different rates. In the EU, deposits are protected up to €100,000 per depositor per bank, so rate and service still drive choice. ING Groep N.V. offsets this with a strong digital app, broad convenience, and a trusted brand.
Mortgage and loan borrowers
Mortgage and loan borrowers have strong bargaining power because they can compare rates, fees, and service across many lenders, and mortgage products are close to homogeneous. In 2025, even a 0.25 percentage point rate gap can shift monthly payments by about €40 on a €250,000 loan, so price sensitivity stays high. ING Groep N.V. must stay sharp on pricing while covering credit risk and capital costs.
Corporate banking clients
Corporate banking clients have high bargaining power because large and mid-market firms can run competitive bids for lending, treasury, and cash management. They often bundle services, which raises switching pressure and pushes fees down. ING Groep N.V. can cut churn with its broad product set, but customer power stays strong in a market where borrowers can compare many banks fast.
Low switching friction for digital users
Digital banking keeps switching costs low for ING Groep N.V. customers, because they can compare rates, fees, and app features in minutes and move accounts with far less effort. Fintech tools and account-switching services weaken loyalty, so buyer power is highest in plain retail products like current accounts, savings, and cards.
- Easy comparison raises price pressure
- Switching tools cut loyalty barriers
- Standard products face the most risk
Institutional and wholesale clients
Institutional and wholesale clients have high bargaining power because they compare price, speed, and execution daily, and can move large mandates fast. ING Groep N.V. must win with scale, strong relationship coverage, and reliable trade and financing execution; even a small pricing gap can shift business to rivals.
- Large clients buy on price and speed.
- Switching costs are often low.
- Execution quality drives retention.
ING Faces High Customer Bargaining Power Across Core Banking Segments
Customers have strong bargaining power at ING Groep N.V., especially in retail deposits, mortgages, and corporate banking, because products are easy to compare and switch. EU deposit insurance covers up to €100,000 per depositor per bank, but rate gaps still matter: on a €250,000 mortgage, a 0.25-point spread can move monthly cost by about €40. ING Groep N.V. leans on digital convenience and scale to soften that pressure.
| Segment | Buyer power | Key driver |
|---|---|---|
| Retail deposits | High | Rate shopping |
| Mortgages | High | Fee/rate compare |
| Corporate | High | Bid pressure |
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Rivalry Among Competitors
Large universal bank competition
ING faces large universal banks like BNP Paribas, Deutsche Bank, Santander, and UniCredit across retail and wholesale banking. With about 40 million customers and a presence in 40+ markets, ING meets rivals that match its scale and reach, keeping pricing tight. That pushes constant pressure on margins, service quality, and faster product updates, especially in mortgages, payments, and capital markets.
Strong domestic rivalry in core markets
ING Groep faces strong domestic rivalry in the Netherlands, Belgium, and Germany, where entrenched local and regional banks fight hard for deposits, mortgages, and SME clients. ING still competes with both branchless digital lenders and branch-based banks, so pricing and service stay under pressure. ING Groep reported 38.4 million customers and EUR 6.4 billion in net profit in 2024, showing scale but not easing the local fight.
Digital-only and fintech pressure
Digital challengers keep pressure high in payments, savings, and daily banking by offering fast onboarding, lower fees, and cleaner apps. ING Groep N.V. served 40.7 million customers in 2024, so even small share loss matters. To protect loyalty, ING must keep lifting digital service quality and speed.
Wholesale banking competition
Wholesale banking rivalry is high. In corporate and investment banking, global banks fight on advisory, lending, trade finance, and capital markets, while clients often split mandates across 3-5 providers. With narrow product gaps and fee spreads often in low basis points, ING Groep N.V. competes in a market where price and balance-sheet capacity matter more than brand.
- High rivalry across core services
- Clients split mandates across banks
- Fees stay tightly bid
Low industry growth in mature markets
ING Groep N.V. faces heavy rivalry because much of its business sits in mature eurozone markets where loan demand grows slowly, so banks must fight for share instead of riding new demand. In that setting, even small pricing moves matter: ING reported a 2024 cost/income ratio of 53.1% and a CET1 ratio of 13.6%, showing how hard it is to defend margins while staying efficient.
- Slow growth shifts battle to market share.
- Pricing pressure cuts lending margins.
- Retention matters more than acquisition.
ING Faces Fierce Rivalry in Crowded Banking Markets
Competitive rivalry is high for ING Groep N.V. because core markets are mature and crowded, so banks fight on price, speed, and digital service. ING served 40.7 million customers in 2024, but rivals still press hard in retail, mortgages, and wholesale banking, where margins stay tight and clients split business across multiple banks.
| Metric | 2024 |
|---|---|
| Customers | 40.7m |
| Net profit | EUR 6.4bn |
| Cost/income ratio | 53.1% |
| CET1 ratio | 13.6% |
Substitutes Threaten
Non-bank payment options
Non-bank payment options are a clear substitute threat for ING Groep N.V., because fintech wallets, instant payment apps, and card-linked tools can handle daily purchases without a main bank account. In the euro area, SEPA Instant transfers run 24/7 and the transfer cap rose to EUR 100,000 in January 2025, which makes bank-to-bank payments easier to replace. ING has to keep payments fast, cheap, and frictionless, or users will shift volume to these alternatives.
Capital market financing
Capital market financing is a real substitute for ING Groep N.V. loans, especially for large, investment-grade borrowers that can issue bonds, commercial paper, or private placements. With the ECB deposit rate cut to 2.0% by June 2025, direct market funding became more attractive for some corporates. When spreads are tight and markets are open, ING can lose loan demand to cheaper, faster capital market access.
Peer-to-peer and marketplace lending
Peer-to-peer and marketplace lenders are a moderate substitute for ING Groep N.V., because some borrowers switch to platforms that can fund niche loans faster than bank credit. These channels can also force price cuts in selected segments, especially where speed matters. Even so, they remain small versus bank lending, so the threat is pressure on margins, not a full-scale shift.
Self-directed wealth platforms
Self-directed wealth platforms are a real substitute: in 2025, low-cost apps and robo-advisers let customers buy ETFs, save cash, and rebalance portfolios without a bank adviser. That pressure matters because many users want basic investing only, not full service. ING Groep N.V. must win on advice, trust, and one view of banking plus investing.
- Low fees cut bank pricing power
- Apps meet simple investing needs
- Advice and planning still matter
Open banking and embedded finance
Open banking lets customers mix and match accounts, payments, and lending across providers, so ING Groep N.V. can lose the direct link on routine products. Embedded finance pushes loans, cards, and payments into non-bank apps, which makes bank brands less visible at the point of use. As Europe’s open-banking and embedded-finance use keeps rising, substitution pressure should climb most in low-complexity services.
- Lower switching costs for routine banking
- Non-bank platforms weaken direct ties
High Substitute Threat for ING in Payments and Basic Saving
Threat of substitutes is high for ING Groep N.V. in payments and basic saving, because fintech wallets, instant apps, and open-banking tools can replace routine bank use. SEPA Instant runs 24/7 and the cap rose to EUR 100,000 in January 2025, so bank transfers are easier to swap out. Lower ECB rates at 2.0% in June 2025 also made market funding a cleaner rival to some loans.
| Substitute | 2025 signal |
|---|---|
| SEPA Instant | EUR 100,000 cap |
| ECB deposit rate | 2.0% |
Entrants Threaten
High regulatory barriers
Banking is hard to enter because a new player must win licenses, face prudential supervision, and meet capital and liquidity rules: the EU CET1 minimum is 4.5%, plus a 2.5% capital buffer, and the LCR floor is 100%. These checks slow launch plans and raise costs far above most sectors. That shields incumbents like ING Groep N.V. from quick new rivals.
Capital intensity
Capital intensity keeps new banks out of ING Groep N.V.'s market. In the EU, a credit institution needs at least €5 million of initial capital, and real scale takes far more to fund loans and cover losses.
That is a steep hurdle: ING reported a 2025 CET1 ratio above 14%, so any entrant must build a large equity base before it can compete safely. The need to fund growth before profit makes many would-be entrants stop.
Trust and brand requirements
Banking is trust-led, so new entrants face a steep wall: ING serves about 40 million customers across Europe, and its scale plus brand history makes deposit-holders slow to switch. ING also reported a strong 2025-style capital position, with a CET1 ratio above 13%, which signals safety to customers. A new bank must prove reliability first, and that takes years, not months.
Technology lowers some entry barriers
Cloud banking stacks and banking-as-a-service platforms have cut launch costs, so digital rivals can enter niches faster. For ING Groep N.V., the bigger barrier is not setup but scale: EU banks still need country-by-country licenses, AML controls, and local compliance. Revolut said it passed 50 million customers in 2024, showing how fast digital challengers can grow.
- Lower capex speeds entry.
- BaaS helps launch niche products.
- Compliance blocks multi-country scale.
Distribution and data advantages of incumbents
ING Groep N.V. starts with a wide base of millions of customers, deep transaction histories, and clear cross-sell data, so new banks must spend heavily to win trust and match product breadth. In 2025, ING also showed the scale advantage of this base with EUR 22.6 billion in total income, which supports digital service and data investment. That keeps entry threat moderate, not low.
- Millions of existing customer links
- Rich payment and spending data
- High cost to acquire trust
- Broad product set is hard to copy
ING’s New Entrant Barriers Stay High Despite Digital Banking
Threat of new entrants for ING Groep N.V. is moderate. EU licensing, €5 million minimum initial capital, and 100% LCR keep entry costly, while ING’s 2025 CET1 ratio above 14% and EUR 22.6 billion income show the scale and trust a newcomer must match. Digital banking lowers launch costs, but not the compliance burden.
| Barrier | Data |
|---|---|
| Initial capital | €5m |
| LCR floor | 100% |
| ING CET1 2025 | Above 14% |
| ING income 2025 | EUR 22.6bn |
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