Barclays' acquisition of ING Direct assets 'could have major implications'
An expert has highlighted some of the implications of a recent deal between ING Direct and Barclays.
Barclays intends to acquire ING Direct's mortgage and savings books following sales negotiations between the brands.
Commenting on this decision, MoneySupermarket.com head of banking Kevin Mountford pointed out it will result in the savings book of ING Direct becoming protected by the Financial Services Compensation Scheme, "rather than the Dutch protection scheme".
There is a strong possibility that ING and Barclays will share a banking licence, he stated, recommending that people using both providers for deposits ought to ensure the combined total of cash is under the £85,000 protection limit.
The deal should provide Barclays with good long-term growth potential, he continued, claiming that it will be able to deliver "multiple products" to ING Direct clients, indicating the transaction provides it with a "great opportunity".
Furthermore, there is a chance that Barclays will boost its online offerings as a result of the deal, Mr Mountford commented, suggesting this would up the ante in the savings sector.
"Only time will tell," he said.
Posted by Ron Maverick
Source: MoneySupermarket.com press release, October 9t