ING Bank, the sixth largest bank in the Romanian banking system in terms of assets, has recently launched several new products for its SME customers.
The latest is an instant credit line, called ING SRL, which provides financing of up to lei 350,000 (EUR 76,000) to companies with a turnover from EUR 20,000 to EUR 2 million.
The product is targeted to micro and small companies registered as limited liability companies (LLCs), for both existing customers as well as for new clients to the Bank.
The credit line will be granted until further notice, with annual revision of financial standing of the companies, based on signed agreement to interrogate fiscal authority database.
Pricing is similar to existing facilities granted to this segment and all-in margin may vary from 5 to 10%, depending on financial standing of the company.
The product is available instantly due to automated checks via ANAF (tax authority) databases, the Credit Risk Center, the Payment Incident Center (for companies), and the Credit Bureau (for Associates, Administrators and the Sole Entrepreneurs), as well as other instant checks in any ING Bank branch.
“This new verification algorithm will become the standard process for assessing credit applications of all kinds for micro and small companies. Practically, the external verification algorithm underlying each evaluation process will be applied to any credit file from now on, thus reducing the response time and money transfer to the customer account,” said Maria Cenusa, Tribe Lead for Micro-Companies at ING Bank Romania.
Today, credits are granted within at least 1 ½ -2 weeks. With the new analysis model, the loan is granted within a few minutes.
“The value of the product is not that they receive an instant loan, but the convenience we offer to our customers, which avoid the hassle of bringing lots of documents, coming several times to the bank for follow-up, etc.,” Cenusa said.
A customer can receive the credit line ING SRL in two ways:
- Single visit: customers can go with all the process at any ING Bank branch
- To apply online via the bank website, fill in the required information and submit it. An ING consultant will contact the applicant quickly to confirm the application. Then, the customer should visit the ING branch of their choice to complete the credit application and sign the loan documentation.
Every month, the customer should repay 10% of the credit line limit, as well as the accumulated interest and administration fee. The limit is replenished the next day.
The collateral for the loan is a pledge on the customer’s current account at ING Bank, plus the personal guarantee of all shareholders with at least 25% of the shares.
“ING Bank’s strategy is to provide a better, distinctive experience to its customers. And this means listening to them better, seeing what they need today and anticipating what they will need tomorrow. And what we have noted for the SME segment is that people need time to balance their personal and professional life. They need to remain in control of their business wherever they are, at any time,” said Bogdan Boteanu, Deputy General Manager of ING Bank Romania and Head of Mid-Corporate Banking.
In addition to the credit line, ING Bank Romania offers instantly to small companies the current account, debit card and credit card (ING Business Credit Card).
At the end of 2017, ING Romania entered the credit card market with a micro-business product, the ING Business Credit Card, which can be issued in any ING Bank’s branch to clients regardless if they already have or not a history with ING. The credit card limit is lei 35,000 without the need to provide additional documents and is guaranteed with pledge on current accounts. The credit card can be granted on the spot, without financial documents, and the card can be picked up any time at the branch, or within a few days if the customer applies for an embossed card.
In 2018, ING Bank Romania launched ING Business, an omni-channel online banking platform, dedicated to Mid-Corporate Banking customers, companies with a turnover of between EUR 0.5 Mio to EUR 100 Mio. Through ING Business, business customers have 24-hour access to all banking products and services, accessible from any desktop, laptop, tablet, smartphone or smartwatch.
The ING Business system for the Romanian market is implemented based and adapted on the ING Business platform launched earlier at ING Bank Śląski in Poland.