This publication brings you more information on the closure of ING's Romanian private bank, set to occur in January next year.

ING decided to shutter its Romanian private bank because its initial market research did not align with the domestic demand for sophisticated wealth management solutions, this publication can reveal. 

Yesterday, WealthBriefing reported that the Dutch banking group was to close its private banking unit in Bucharest in January, 2018. 

But once the unit was launched in 2011, it became clear that market demand did not meet the firm’s forecasts. 

“Although the initial decision to launch a department dedicated to high net worth individuals was based on studies that anticipated an increased demand for sophisticated wealth management solutions, the investment behavior on the local market was rather prudent post-crisis, not confirming the anticipated trends,” Christoph Linke, a spokesperson for ING, told this publication. 

Linke said the Romanian private banking operation employed a total of eight staff, all of whom have “found new opportunities within ING Romania”. 

He noted that in recent years, the increased digitalisation of banking services offered by ING allowed clients to access mutual funds directly through its online banking platform.

“Therefore, we [have] reorganised our wealth management model and propose digital offerings like mutual funds within ING Retail and for clients with diversified investment appetite, we engage [with] our colleagues in ING Luxembourg that can manage more complex investment portfolios,” Linke added.

The division will close on 1 January, 2018. 

ING’s Romanian wealth management division was reportedly the first of its kind in the local market when it launched. 

The minimum deposit to open a private banking account was €500,000 ($593,237), according to local media reports. 

The unit oversaw hundreds of millions of euros for wealthy clients, with some reportedly accounts having assets totalling more than €20 million.