Exclusive Interview with ING executives Uday Sareen and James Poon: Our global network is our key strategic driver

As a global bank with roots in Europe, ING has been providing financial and banking services to large multinational corporations and financial institutions in over 40 countries. At the Sibos conference held in Beijing, executives of this major multinational bank engaged in in-depth exchanges with participating institutions. 

During Sibos, Uday Sareen, ING’s chief executive and head of Wholesale Banking APAC, and James Poon, country manager for ING Mainland China and Hong Kong SAR, were interviewed exclusively by the 21st Century Business Herald, sharing their views on the wholesale banking business and banking industry trends from the perspective of an international bank.  

Uday Sareen has 30 years of work experience in the banking industry, spanning across the Asia Pacific, Europe, Middle East and Africa regions. In October this year, Uday was appointed as head of Wholesale Banking APAC at ING, overseeing ING’s operations in 11 markets across the APAC region. Uday said that the APAC region encompasses both emerging and mature markets, providing diversified growth opportunities for the wholesale banking business. Furthermore, digital transformation and artificial intelligence are playing a role in the wholesale banking sector, and ING is already utilizing these advanced technologies to enhance efficiency and productivity.  

James Poon has been with ING for over 30 years and was appointed country manager for mainland China and Hong Kong SAR in July 2021. James is optimistic about China’s long term economic prospects and acknowledges the significant progress that ING has made in its operations in China. Looking towards the future, the focus will remain on key sectors, working hand in hand with clients to achieve sustainable growth. ING is also able to leverage its global network to assist Chinese enterprises in their international expansion.  

Global network a key strategic driving force  

Having recently taken up the position of Head of APAC at ING, what key strategies do you hope to implement?  

Uday Sareen: We have been operating in the APAC region for nearly 40 years, which is an important part of our global network. The focus of our business in APAC is to ensure dedicated service to our clients. Therefore, leveraging our global network, we focus on seven key industries. It is worth mentioning that ING has the largest operating network in Europe, spanning 23 countries. For large Asian multinational corporations and international businesses, we can serve as a gateway for them to access the European network. Hence, our global network is our key strategic driving force.  

Furthermore, our strategy also includes promoting the development of sustainable finance, as sustainability is an important aspect for our clients. We are seeing that sustainable finance is rapidly growing in APAC, maintaining an annual growth rate of around 50% in the past few years, which is very significant. Last year, ING issued US$115 billion in sustainable finance loans and bonds globally, and we have committed to increasing this figure to US$150 billion by 2027.  

Overall, our three key drivers are the sectors we operate in, sustainable finance, and our global network. Additionally, the APAC region accounts for approximately 30% of global GDP, encompassing both emerging and mature markets, which will provide us with diversified growth opportunities. 

Under the current global economic environment, how does ING view the growth potential of the wholesale banking market in the APAC region?  

James Poon: In the APAC region, ING pays close attention to the mainland China and Hong Kong markets. As ING is a very stable and long-standing bank, our focus lies on sectors. We have made significant progress in our operations in China, and our client base is highly international, thus our network plays a crucial role. We have done well in the Belt and Road Initiative and have established strong partnerships with companies in many developing countries.  

Uday Sareen: We can provide clients with cross-border financing services, and ING conducts business in 25 countries involved in the Belt and Road Initiative. We can see many companies expanding and seeking new supply chains, such as trade between China and Mexico, and China and Eastern Europe. In these markets, we can offer customers cross-border financing, currency exchange, and foreign exchange hedging services. These are closely tied to the sectors ING covers and the service network we provide. This is also our unique competitive advantage. For example, many leading Chinese EV and battery companies made significant investments in Hungary last year.  

I recently relocated from Amsterdam to Singapore. I was responsible for ING’s wholesale banking European network for the past four years. It should be noted that ING has the largest network in Central and Eastern Europe, which is highly valuable for large Asian enterprises seeking to enter the European market.  

Artificial intelligence playing a key role  

How do you view the impact of fintech on the wholesale banking industry?  

Uday Sareen: This is quite a broad topic. From the perspective of digital transformation and leveraging artificial intelligence, I believe there are some initiatives that are already in play. I can share a few examples.  

One example is artificial intelligence. Currently, ING is already leading in its operations, to further enhance efficiency and productivity, we are utilizing artificial intelligence for smart decision-making in our loan business. This is a case of practical application. Another example is sustainable finance. We are working with nearly 2,000 clients to assist them in formulating transition plans. We have developed an AI tool for data collection, monitoring, and evaluation, aiding clients in generating transition pathways. From the perspective of digital transformation, we provide insights to clients online that enhance their experience. These are all practical examples of ING leveraging technology.  

What are the main trends and challenges that wholesale banks will face in the future? 

Uday Sareen: I would like to emphasize again the opportunities in sustainable finance. Just looking at the numbers, the APAC region will require around US$2.5 trillion in funding for green infrastructure in the next 5 to 10 years. Clearly, sustainable finance will be a key driver of future development. Furthermore, from a supply chain perspective, we are witnessing a trend towards supply chain diversification, which is also bringing about more demand for cross-border financing.  

What are some of ING’s innovative initiatives in the field of wholesale banking? How do you perceive the value of these innovations?  

Uday Sareen: In the field of sustainable finance, in 2017, ING Bank issued the world’s first sustainability-linked loan, establishing itself as a pioneer in sustainable finance. For example, our first collaboration in sustainable finance was with Philips, where we acted as the sole advisor, providing them with a €1 billion sustainable loan. Another promising direction is the opportunity for large companies in Asia and Europe to further innovate their business models, particularly in managing their global operations. This presents a new opportunity.  

Helping enterprises “go global”  

We see that you have been with ING for over 30 years. As a witness and participant along this journey, how would you evaluate ING’s development in China?  

James Poon: I am fortunate to have grown together with ING Bank. We have gone through many cycles, even crises, with our clients. Throughout this journey, ING Bank has continued to learn and firmly integrate into the Chinese market. We focus on top Chinese enterprises and accompany them in their international growth.  

I believe we have a very effective business strategy, which is to select the right clients and grow with them in the long term. For example, when I started working in Shenzhen in the 1990s, we began serving CIMC, and now we have been cooperating for over 20 years. In 2006, when CIMC made its first overseas acquisition of a Dutch equipment manufacturing company, ING Bank acted as an advisor and provided funding support. Recently, when CIMC conducted its first sustainable finance transaction, it was also completed with the assistance of ING Bank. We are very proud of being able to establish roots in China and grow together with our clients.  

In mainland China and Hong Kong, we are also focused on the coverage of our key sectors and monitoring changes in corporate supply chains. I believe that China is also encouraging leading enterprises to ‘go global,’ and ING is a trusted advisor for companies in their international expansion. Taking Haier Group as an example, recently Haier expanded its business to South Africa through acquisitions, with ING being involved as well. We will prioritize serving our clients’ strategic needs with our expertise.  

What are the main challenges commercial banks are currently facing? How is ING Bank addressing these challenges?  

James Poon: Hong Kong plays a significant role in foreign exchange trading and financing, with an increasing number of companies investing in Hong Kong, solidifying its position as a major global financial center. It should be noted that challenges always exist. We have gone through many cycles, perhaps consumer confidence is currently low, but I believe it will recover. China is taking all possible measures to restore confidence.  

I believe that China will remain at the core of global manufacturing, with its comprehensive supply chain still highly competitive worldwide. From this perspective, despite challenges, I still see potential. Economies always have their ups and downs, but I believe China will continue to grow. For instance, we have clients like Haier and China Telecom, and ING is assisting them in expanding their businesses globally, which is one way for the Chinese economy to maintain its vitality. As a bank, we will continue to provide support throughout this journey. 

Originally published in 21st Century Business Herald: Opens in a new tabhttps://m.21jingji.com/article/20241105/herald/9fb14b1557b0119f4a2465142fa04b5f.html