ING steps into Turkish finance as it completes Oyak Bank acquisition
Posted by meb at January 18th, 2008
The Dutch-based global finance giant ING Group has started its initiative in Turkey with the completion of the acquisition process for Oyak Bank, which was the Armed Forces Pension Fund’s (OYAK) representative in the finance business.
Eli Leenaars, the ING Group executive board member responsible for ING’s global retail banking operations, said the approval of the sale agreement by the Banking Regulatory and Supervision Authority (BDDK) was like a very special Christmas gift for them. The BDDK had issued the approval for the sale of the bank on Dec. 24, 2007.
At a press conference for unveiling the group’s strategy and future plans pertaining to the Turkish market after the annexation of Oyakbank, Leenaars said the acquisition offers the opportunity to merge the core strengths of the two institutions together. In explaining the rationale of their penetration into the Turkish financial industry, he said there is colossal growth potential in this market. “We trust the current administration of the bank in attaining the vision of further growth,” he said. Emphasizing that Turkey is one of the fastest growing economies in the world, Leenaars said their relationship would benefit the already large and rapidly growing Turkish economy and the resilience of its banking market. “We are committed to sharing best practices to the benefit of all stakeholders, including society and our employees,” he added.
The new owner of the bank has changed the OYAK Bank name to ING Bank Turkey. It intends to double its market share by focusing on mortgages, corporate lending, small and medium-size enterprises, leasing and insurance and pension products. The bank also plans to open 150 new branches — bringing the total number of branches to over 600 — and hire an additional 2,500 employees.
By the end of this year the transition of Oyak Bank with all of its branches to the ING Bank brand will be completed. The new brand will be promoted with the concept of “easy, convenient banking.” Orange, the color of ING Bank, will be used as the symbol of this transition.
OYAK Bank’s established personality will witness a radical evolution as well. It has been defined as a traditional bank with a limited regional organization, a conventional branch-based banking system and a focus on consumer loans. However, ING Bank Turkey will adopt the “easiest, most convenient” service as its primary motto. It will promote an extensive regional organization, give greater priority to third-party partnerships and focus on more numerous marketing channels, from mortgages to consumer loans.
Disclosing detailed plans regarding the bank’s strategy in the upcoming period, ING Bank Turkey General Manager Hakan Eminsoy said ING is going to make considerable investments to provide ING Bank Turkey with the necessary capital to execute its plans. Eminsoy said: “In the past years Oyak Bank has developed into a solid bank with 1.3 million customers and 13,400 small and medium-sized-business customers. I am convinced that now that we are part of ING, we can further extend our customer base and market share in the rapidly growing Turkish market.”
source: Today’s Zaman
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