ING Direct announces business banking move

ING Direct has announced that it will move into the business banking sector for the first time.

The institution has traditionally focused on home lending and term deposits, but now bosses have unveiled plans to lend money to small and medium-sized companies, the Australian reports.

This announcement comes after the firm revealed details of a ten per cent increase in profits in 2011 – becoming the nation's fifth largest bank in the process.

Business owners will be glad to see increased competition in the banking sector, as Credit Suisse recently told the Herald Sun that Aussies will find it harder to secure credit in the near future, as the cost of lending has grown.

Chief executive at ING Direct Don Koch stated that the bank has a chance to be "innovative" in the business banking sector.

"There's an opportunity for someone to come in and create change and disruption," he was quoted as saying.

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