ING going into battle on balance
ONLINE bank ING Direct will battle it out on superannuation fees as it seeks to make inroads into the $1.3 trillion industry.
ONLINE bank ING Direct will battle it out on superannuation fees as it seeks to make inroads into the $1.3 trillion industry.The lender says it has found a way to help ease the nation's funding strain as it channels more superannuation savings into the banking system.ING has launched a basic balanced-style superannuation savings product that it claims has no administration or management fees.Under the account, about half the funds locked away will be invested into a deposit-style cash account that will be used to fund mortgage lending for ING's banking arm."We looked at total funding and a large proportion of those savings were going into superannuation," ING Direct chief executive Vaughn Richtor said.Over recent weeks, several bank executives have called for a greater slice of the super industry to be used to fund the banking sector. Former Treasury secretary Ken Henry recently criticised the industry for having too much exposure to the sharemarket and said it needed to diversify investments.Financial Services Minister Bill Shorten said the ING move to remove fees on basic super accounts went to the heart of the government's reforms on financial advice and introduction of MySuper accounts.