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“Save Your Money” because “You are Richer Than You Think”

August 30, 2012

“Save Your Money” Because “You are Richer Than You Think”

How does that slogan grab you?

We are going to have to get used to it, as was reported yesterday afternoon on our blog, ING Direct Canada has been bought by Scotiabank.

First and foremost I would like to state that if you currently have a mortgage with ING, your existing mortgage will not be impacted by this announcement. Your mortgage contract is still valid and will be until the end of its term.

The initial reaction to this announcement by ING’s clients is loud and clear, here is a taste of what was posted this morning on the ING Direct Canada Facebook Page:

Horrible news! It’s a bad day for the underdogs in the banking world.Cecilia

Sorry to see ING go. This model of banking is a great threat to how the main players do business because it teaches customers to expect more. We have now been acquired by Scotiabank and will pay for it in 18 months or less, going backwards instead of forward. More fees, more debt, more hassles…. Miss you already ING.Emily

One of the main reasons to go to ING was to get away from the Canadian banks and their “squeeze every penny out of their clients” business model…Patrick

I am like everyone else, completely disappointed.Ray

What’s Next?

MonsterMortgage.ca will be monitoring this announcement over the coming months and we will routinely post our thoughts on the transaction as details unfold on our blog, social media accounts and newsletters; in addition, we are here to answer any questions you may have on the transaction and always welcome your views, so please call, email or post your comments on our site.

Here are some initial thoughts:

Culture Clash – this one is obvious and clearly an issue with ING’s clients, all of whom joined ING because they were seen as an entity protecting consumers against banks. That’s who ING is.

Client Service – an extension of the culture clash, with the mixing of two very diverse corporate cultures the major concern to consumers will be how will “I” as the customer, now be treated.

Service Fees – A big attraction to ING was that consumers were not “nickled and dimed” on a daily basis for doing business with them…NO SERVICE FEES. Something all banks are famous for. Take a look at Canada’s largest bank, RBC, who announced $2.2 billion in quarterly profits (the other banks didn’t do so poorly either.) Over 80% of their profit came from their Canadian operations and a majority of that was from nothing more than banks charging service fees on…well…everything.

Who is left to champion the average mortgage holder? – ING who established itself as a protector of consumers against banks has been sold to a BIG BANK leaving Canadian mortgage consumers with fewer choices (for now). As the big banks continue to try and take over more and more of the lending market and erode your choices, it is up to someone else to fill the void…and someone will eventually if ING doesn’t fulfill the commitment they made in their announcement that “nothing will change”…time will tell but I believe most consumers are confident on how this will turn out.

At MonsterMortgage.ca, we are committed being a trusted advisor to you, the mortgage consumer. Ultimately, our success is tied to your success. For this we would like to say thanks for allowing us to earn your business.

If you have any questions, commentary or concerns about yesterday’s announcement, don’t hesitate to contact us…and remember, be LOYAL TO YOURSELF, not the BANKS.