ING hungry for slice of digital banking sector

Dutch financial services company ING Group NV is planning to launch digital banking business in China by setting up a joint venture with Chinese lender Bank of Beijing Co Ltd, as it hopes to gain a slice of China's rapidly growing online banking market.

The partnership between ING and Bank of Beijing on digital banking is an illustration of the response by incumbent financial institutions to intensified competition from technology firms such as Alibaba and Tencent that are eating into their revenue streams by offering financial services on digital platforms.

ING is hoping to pool its strength in consumer banking services and financial technology with Bank of Beijing's local knowledge of the Chinese market and the regulatory environment in their digital banking JV in China, according to Ralph Hamers, ING Group's chief executive.