ING Bank extends services towards smaller companies

After ten years of living off the services provided to large companies, either state-owned or multinationals, ING Bank plans to expand its presence in order to service companies whose revenues range from 5 to 50 million euros.

The increasingly fierce competition and the consolidation of market shares on the top corporate segment is encouraging ING to adjust its image as an expensive, exclusive bank and try to expand its client portfolio (and implicitly its business volume) to ensure revenue growth.

The bank estimates this new sector to reach 200 million euros by yearend, as explained by ING Bank’s deputy general manager Misu Negritoiu on Wednesday.

ING on Wednesday signed a partnership agreement with the National Warranty Fund for Small and Medium-Sized Enterprises (FNGCIMM).

According to the ING official’s estimates, this partnership will allow the bank to grant additional loans worth 25-50 million euros over the next 12 months.

The agreement only covers those companies whose turnover ranges between 5 and 8 million euros, a requirement stipulated in the Fund’s statute.

“ING wants to convey the message that it is not an elitist bank, nor is it an inflexible bank that only does business with top companies. It is true that 80%-90% of the international companies in Romania and 50%-60% of the major national companies are among our clients. However, we are increasingly leaning towards small and medium-sized enterprises, because we are a local bank that will become involved in the real economy,” Negritoiu said.

ING Bank’s executive explained that companies with less than 5 million-euro annual revenues couldn’t be included among the bank’s clients because the bank did not have the necessary distribution capacity.

“ING’s credits primarily target companies whose turnover is in excess of 200bn ROL and have a tradition in business.”

Negritoiu stated that, “banks generally do not share risks with newly-formed companies. The warranty funds, however, support financing for SMEs and underwrite the risks associated with these small and medium-sized companies, with banks granting loans based on such guarantees.”

The National Warranty Fund for Small and Medium-Sized Enterprises was established in 2001 as a joint stock company, with the Romanian State as its sole shareholder and represented by the former Ministry for SMEs. The latter has turned into an agency in the meantime.

razvan.voican@zf.ro