ING Groep Boston Consulting Group Matrix

ING Groep's mortgage portfolio experienced robust expansion, adding €19 billion in 2024. This growth was particularly concentrated in the German and Dutch markets, signaling ING's deepening penetration in these crucial European residential mortgage sectors. This upward trend highlights ING's successful strategy in capturing a larger share of the mortgage market.

ING Groep's digital banking and sustainable finance initiatives are strong contenders for the Stars quadrant in the BCG matrix. The digital segment saw its mobile primary customer base grow by 1.1 million in 2024, reaching 14.4 million, indicating high growth and market share. Similarly, ING mobilized €130 billion in sustainable finance in 2024, with a target of €150 billion by 2027, showcasing a high-growth, high-share position.

ING's traditional core lending portfolio, a cornerstone of its operations, saw a robust growth of €28 billion in 2024. This expansion underscores the portfolio's maturity and its continued significance as a primary revenue generator for the group.

This substantial asset base, comprising diverse loan categories, consistently delivers significant net interest income, forming the bedrock of ING's profitability. The portfolio's stability, fueled by a relatively predictable market environment, ensures a reliable and substantial cash flow stream.

ING's established retail banking operations, particularly in mature markets like the Netherlands, are a textbook example of a cash cow. These segments benefit from dominant market shares and substantial, stable revenue streams, consistently generating healthy profit margins through high-volume lending and deposit activities.

The core lending portfolio, which saw a robust €28 billion expansion in 2024, also functions as a cash cow. This significant asset base, comprising various loan types, reliably produces substantial net interest income, providing a stable and predictable cash flow crucial for ING's overall profitability.

ING's Payments & Cash Management services are another key cash cow, characterized by high-volume, consistent transaction processing. While margins may be lower, the sheer scale of these operations, supported by substantial deposit growth in 2024, ensures a predictable revenue stream essential for corporate clients and ING's financial stability.

ING Groep's strategic pruning likely targets small, underperforming niche market operations where it lacks significant market share. These units, often found in stagnant or intensely competitive sectors, struggle to achieve profitability and growth, making them prime candidates for divestment or closure. For instance, if a particular digital banking service in a small European country only captured 1% of the market in 2024, it would likely fall into this category.

ING Groep's "Dogs" represent business units or ventures with low market share and limited growth potential. These are often legacy operations or underperforming investments that ING strategically manages for decline or divestment. For example, certain niche digital services in less developed markets or older IT infrastructure that require significant upkeep without substantial returns would fall into this category. In 2023, ING continued its portfolio review, a process that inherently identifies and addresses these "Dog" segments to optimize resource allocation.

These "Dog" segments, while representing a challenge, are crucial for ING's strategic pruning. By identifying and either divesting or winding down these low-performing areas, ING can reallocate capital and management focus to its more promising "Stars" and "Cash Cows." This strategic divestment is a proactive approach to shedding underperforming assets, thereby improving overall financial health and operational efficiency. For instance, ING's exit from certain retail banking operations in Asia in prior years exemplifies this strategy.

ING's legacy IT systems, particularly those not yet fully modernized, can be considered "Dogs." These systems often have high maintenance costs and limited adaptability to new digital demands, impacting customer experience and operational efficiency. For example, older core banking platforms, while functional, may lack the agility of cloud-native solutions, leading to slower product development and higher operational expenditure. In 2024, the ongoing digital transformation efforts within ING aim to address these legacy "Dogs" by migrating to more efficient and scalable platforms.

ING Groep likely categorizes specific, small-scale regional operations or niche financial products as "Dogs" if they exhibit low market penetration and minimal growth prospects. These units often operate in mature or highly competitive markets where ING does not hold a significant competitive advantage. For instance, a specialized investment product in a small, stagnant market segment that garnered only a tiny fraction of market share in 2024 would be a prime candidate for this classification.

ING Groep's strategic focus on emerging digital lending solutions in Business Banking for 2025 positions these offerings squarely in the "Question Mark" category of the BCG Matrix. This means they represent a high-growth market segment that ING is actively pursuing, aiming to capture a significant future market share.

The expansion of digital lending leverages technology to streamline processes, enhance customer experience, and reach a broader base of businesses. This aligns with the broader trend of digital transformation within the financial sector, where fintech innovations are reshaping traditional banking models.

While currently holding a low market share, the high growth potential of digital lending is undeniable. For instance, the global digital lending market was valued at approximately $12.5 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of over 20% through 2030, indicating a substantial opportunity for ING to invest and gain traction.

ING Groep's emerging digital lending solutions for businesses in 2025 are categorized as Question Marks. These represent areas with high market growth potential but currently low market share for ING. Significant investment is required to nurture these ventures and transform them into market leaders.

The global digital lending market is a prime example of this high-growth environment. Valued at approximately $12.5 billion in 2023, it is projected to expand at a CAGR exceeding 20% through 2030. This trajectory highlights the substantial opportunity for ING to invest and gain a competitive edge.

ING Ventures' portfolio, while paused for new investments, includes 30 startups, many in early Series A rounds within FinTech, AI, and enterprise applications. These early-stage investments, crucial for future market relevance, are in sectors that saw continued robust venture capital funding in 2024, underscoring their potential.

ING's strategic expansion into underpenetrated customer segments like Affluent and Generation Z also falls into the Question Mark category. The global wealth management market, encompassing the Affluent segment, was projected to reach $13.5 trillion in assets under management by the end of 2024, indicating the scale of opportunity.