ING could take 500,000 away from brokers, claims Cleary

ING Direct could end up taking half a million customers away from the broking market, according to Edeus managing director Alan Cleary.

He said the launch of ING last month as a direct brand could spell trouble for brokers even though the firm has pledged to sell through intermediaries eventually.

However, Cleary doubts that it will ever use brokers and expects the lender to replicate its success in the direct savings market where it is widely seen to be offering some of the most attractive rates. Last week, John Charcol senior technical director Ray Boulger said he only expects ING to use brokers when they realise they need them.

ING has received praise since its launch for its transparent products that do not include an exit fee, while its flexible offering does not have any fees at all.

Cleary said: “ING is a threat as it has a track record of being very successful by marketing simple mainstream products and it will be successful. The broking market could have lost half a million customers because of it.

“You will always have new entrants with different strategies and it says it will eventually use brokers but that is like me saying I will eventually win the lottery.”