The Canadian unit of ING Groep NV expects at least 100,000 people to sign up for its new no-fee checking account this year, Chief Executive Officer Peter Aceto said.
ING Direct Canada plans to offer its Thrive checking account, which pays interest and doesn’t carry monthly fees, across the country beginning March 9. The Toronto-based lender has been testing the account over the past five months with 22,000 clients.
The bank, which doesn’t have branches and has operated in Canada for 14 years, wants to gain market share from lenders such as Royal Bank of Canada and Toronto-Dominion Bank in selling mortgages, mutual funds and other products. Aceto expects to have a million clients in Canada doing day-to-banking at ING within a few years.
“I think it will make a modification of how Canadians will look at ING Direct,” Aceto said in a telephone interview today. “Certainly our goal over the next few years is to have at least 50 percent of our two million customers doing day-to-day banking with ING Direct.”
According to the Canadian Bankers Association, 60 percent of Canadians pay C$15 ($15.43) a month or less on monthly service fees, while 28 percent don’t pay any fees.
To advertise the product’s launch, the bank will issue checking accounts with C$7,000 in them to four Canadian celebrities including former National Hockey League player Trevor Linden. The celebrity who gives away money the fastest through social media and other means will receive C$15,000 towards the charity of their choice.
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