 | 13 Years later and 945 voices to ‘Rally’ for saving |
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But even though we are separated by geography, we are all connected in our dedication to our work, to providing you the best products with no fees or minimums, and to bringing the power of saving to all Canadians. And we do this best when we get together at a Rally to celebrate.
We did this recently, and let me tell you it was big!
For myself, the journey started with Arkadi Kuhlmann, current CEO of
Time Magazine called Arkadi Kuhlmann “
He had a vision for a new kind of bank… a vision that really captured my attention… a vision every employee shares in their work each day for
We started laying the groundwork in 1996, preparing for what would become
Our first commercial introducing us to Canadians began with these words: “Out here, you have real power. People compete for your business.”
We talked not about being a bank, but being “something different.” And we introduced our cause - to help Canadians save their money. This was our chance to make a difference.
We started by offering our Investment Savings Account and long-term GICs, but what most people remember is the emergence of our great TV commercials involving Frederic De Groot, who is actually an actor famous for playing a detective on Dutch television.
And we started to grow. We launched our lending program and U.S. dollar savings accounts in 1998. By 2003 we had one million customers, and in 2004 we launched the low-cost “un-mortgage”, a revolutionary way for a bank to view their customer’s mortgages.
Then in 2007, we celebrated our 10th anniversary, but with no intention of slowing down. In 2008, we launched the Streetwise Funds and became the first bank to offer Canadians a Tax-Free Savings Account.
By living our brand every day in every interaction with you, our customers – we’ve become the No. 1 direct bank in Canada, the 7th largest consumer bank and 6th largest mortgage producer in Canada.
And we thank you for this support and success. After all, this is a two-way relationship; one we hope you also feel has enriched your life in a small or big way. You’ve told us you think we are a leader in savings, an innovative company, and a pretty cool bank! We wish you could have attended our rally, but rest assured, your spirits as customers who believe in the power of saving was present.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
| Meeting and Tweeting, and mingling in Toronto |
On January 25th at the Dark Horse Café in downtown Toronto, over 120 attendees discovered that ‘yes, there is a real person behind the tweets’!
The event was a Meet & Tweet in which we invited everyone in the Toronto area who follow
We chatted about the use of social media channels like Twitter, Facebook and YouTube and how they have changed our lives. During the tweet up we also heard from Matt Hartley, Technology Reporter at the National Post about online savings tools/communities, and from financial blogger Preet Banerjee, who writes for Wheredoesallmymoneygo.com. They talked about the use of social media as part of their work and how they are still exploring its many uses.
For everyone in the room the feeling was one of adventure and excitement since the future of social media is still being explored. I can imagine the feeling would be similar to when the telephone was introduced to homes and communities, letting us communicate faster than traditional written letters. Or take the example of email which evolved in the 60s and 70s from an internal tool used by a small group to its world wide use today.
At the same time it’s hard sometimes to go down a road that is less familiar. There are those who feel it is a waste of time and energy to use social media, especially for a CEO. I guess it’s hard to shake those old banker images but for me, this event was worth any criticisms.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
 | The "7 second" rule for buying a home |
The "7 second" rule is one of those handy tips to help curb impulse buying. Basically, when you are considering a purchase, pause for 7 seconds while asking yourself, "Do I really need to buy this thing?" Hopefully you'll overcome your impulsive urge to buy and calmly walk away, or consider a less expensive option.
We all like to think that we are rational people who make decisions based on fact, but studies show that we are more often swayed by our emotions and can get caught up in market highs and lows. Take investing in the stock market. We all know the saying "buy low and sell high" but very few people can follow it since it can run counter to what we feel. "I don't want to buy a stock that is going down in price/value…I'll lose money."
The same can be said for Canada's current 'hot' housing market. With historically low rates, many Canadians are keen to refinance or buy a home as soon as possible. This in turn creates irrational behaviour - bidding wars, purchase conditions being waived, houses selling for 10 to 20% over the asking price. Some could call these signs of a bubble, but for me the more troubling aspect is the position many of these new homeowners could find themselves in a few years from now.
When you sit down to find out how much 'house' you can afford to buy based on your current income and the expected monthly payment, I recommend you try a different "7 second" rule.
Take that mortgage amount and create 3 other amortization schedules with higher rates. For example, a $300,000 mortgage with a 5 Year Fixed rate of 4.09% amortized over 25 years will have a monthly payment of $1,592. You may think that this is something you can afford. Now raise the rate by 1% to 5.09%, then 6.09% and finally to 7.09% (this should take about 7seconds if you use an online mortgage calculator - give or take a few minutes).
This will give you some perspective of what kind of payment you might be making if the rates go up in the not too distant future.
Think carefully about how affordable the home you buy today will be five years from now. You might want to consider buying less home so that your mortgage is smaller. Stay away from any amortization longer than 25 years so that you can pay down more of the principle and interest. You don't need to be an expert in how amortizations work because these are so easy to find online but they will really help you understand what you will really be paying while you live in that home.
I know it's hard to consider all this when that real estate agent finds you the home of your dreams – but those extra 7seconds could help to keep it a dream home and not a nightmare years from now.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
 | What do you want to be when you grow up? |
On November 4th, we had a group of children visit ING DIRECT to take part in Take Our Kids to Work Day – a national event that happens every year. They spent the day visiting our Toronto office along with some hands-on experience in how a Direct bank works. The event helps Grade 9 students get an idea of the types of jobs that their parents do during the day and also provides a glimpse into different departments as well as the skills and education needed to pursue a career that interests them. During the day they were asked a few times – do you know what you want to be when you grow up? Not surprisingly, very few had a clear career goal in mind as they are still learning about the difference between school life and their future work life. I'm sure they will find where their interests and passions are in the coming years and have years of success ahead, but for now they can still enjoy the process of discovery.
Then on November 5th, I gave a speech to 475 business students at my Alma mater, The University of Western Ontario. I chose to share with them my view that the best predictor of one's success in work and life is their passion. If you pursue endeavours you are passionate about, you will likely succeed. To do this, you need to first know what your passion is so that when the opportunity presents itself, you will be ready. I have always believed that the most successful people are those that take the time to discover what they love, their strengths and then build on them to carve out a career path. They are also honest with themselves about what they love to do as opposed to what they think they 'should' be doing. It's not always easy as there is more acceptance and support when a child announces they want to be a teacher, lawyer or doctor and less so if they choose a less travelled path such as circus performer or rock star.
So what is the connection between these two days? Even though I am in the business of banking, a major part of my day is working with people and seeing to it that they are passionate and engaged in their positions here at ING DIRECT. I personally interview each new employee. Although technical skills and education are important, finding a company that you believe in, a company that you are passionate about is a more important predictor of a "new hires" success. This is the foundation for our Orange Culture and as I wrote earlier, this is what makes the people who work at ING DIRECT special which in turn makes ING DIRECT special. Our unified passion ensures that each of our 1.6 million clients feel some of the magic as we strive to exceed their expectations every day.
ING DIRECT recently was voted one of the top 100 employers in Toronto – something that I am very proud of. I hope that next year we will be farther up the list, but in the meantime, we will continue to keep our passion for our business and our customers strong. After all, as Babe Ruth said, "Never let the fear of striking out get in your way."
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
 | Learning about the 'returns and fees', talking to kids about saving |
We recently did a poll with Angus Reid and also on Twitter asking parents what topic they found hardest to talk to their kids about: sex, drugs, or finances. They said "finances" which was a bit surprising to hear.
I too am a parent to 3 younger children and I am not really looking forward to discussing these topics with my kids, except for finances. I know I have the advantage of working in the field so that gives me the confidence to explain concepts such as interest, saving, investing, borrowing, fees, etc. Since I'm so close to the topic I also know that for a lot of parents explaining finances isn't that easy.
Kids are curious and popular media covers the first two topics in great detail whether in a movie, TV series or online. Although this is not where you want your kids to learn these lessons, at least their exposure to them will force parents to attempt to address them sooner or later. Kids today however, don't really get much exposure to learning about money unless their parents start them off with a piggy bank or savings account and then take the time to explain saving, borrowing, and investing. And I'd bet unless they have a natural affinity for saving money, it's pretty low on their list of favourite subjects to talk about when they get together.
For this reason I feel a personal duty to be an advocate for Canadians to help them feel empowered about their money. Basic banking and investing does not have to be complicated and difficult. Unfortunately, many financial institutions and advisors prefer to keep things complicated so we'll always need to pay for their advice. It does not need to be this way and a bit of education can help you feel comfortable making decisions about your money.
One personal example really drives the point home for me. Take for example how many kids learn about credit. They may be in their first year of college or university and they get their first credit card. In fact, on my first day of university I was given a credit card with a $500 limit. They learn pretty quickly how convenient it is, but, what they aren't always aware of are the implications of carrying a balance, missing payments, or how much interest they pay. For some it becomes a hard lesson in finance if they end up with poor credit which impacts future choices like buying their first home.
We think that learning about finances can start from an early age. That's why ING DIRECT recently launched Planet Orange – a fun and interactive site that helps children and parents learn about saving, borrowing, investing and budgeting. By completing space missions, they earn space money to spend on fuel for their spaceship, decorations and other fun stuff.
The site is free and you can sign up at orangekids.ca to get your child a great start to becoming financially empowered. Mom and Dad may enjoy it too. I highly recommend it (and so do my own kids). And don't be afraid to have that talk – it may be one of the most important ones you have to set your child's course for their financial future.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
 | With Thanks – Our First Orange in the Community Event |
The past two years have been unsettling for many Canadians. And even though recovery from the recession is not a done deal, there is hope that the worst has passed. Most of us will reflect on these times and take note of what we've learned – like reassessing our spending habits and what is really important in our lives. If we are fortunate to have not been affected directly, it is also a good time to think about giving back to our Communities.
Over the years, ING DIRECT staff has contributed in various ways, on their own or as a department to raise money for charities and community projects. These events have been very successful and we will continue to provide this support – but this year we also wanted to do something different.
On September 17, ING DIRECT staff participated in our first Orange in the Community event to build a "natural" playground in downtown Toronto.
With assistance from Bienenstock Natural Playgrounds who provided the design and direction, staff shovelled dirt, carried buckets of mulch, scraped paint off old fences, built benches and even brought water for their colleagues. Children in the neighbourhood came out to watch as the park came together with an upside-down tree turned into a play area, a balance beam strung between two huge boulders, a sandbox hemmed in by tree trunks, and slides that fit into the slope of a hill (eliminating the chance that kids could fall from the top, a common playground injury). It also has an area that emits mist, creating a small "cloud forest".
It was an incredible sight to see the more than 400 employees dressed in Orange t-shirts (60 per cent of our Toronto staff!) arrive in the morning eager to meet the 4:30 p.m. deadline. Later in the afternoon Toronto Mayor, David Miller and Councillor Paula Fletcher also joined us with support and words of encouragement.
This was our first Orange in the Community Event and everyone who participated was proud to represent ING DIRECT that day. It if often said that true happiness comes in giving to others – and I think I have to agree. The hard work, along with sore muscles the next day, only brought laugher and smiles.
We plan on making Orange in the Community an annual event. If you are in the Toronto area feel free to drop by the park. If you can't, don't worry. You may see our hundreds of Orange staff in your neighbourhood next year!
Interested in seeing more photos? Have a look at our Facebook Fan Page Photo Album.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
 | Yes, we have no branches. But you can always drop by for a coffee. |
Funny how after 12 years we still get questions like "where are your branches?" My memories of branches (long time ago mind you since I really don't need to visit them anymore) were always of long lines and you only went if you had a special request that couldn't be done online or over the phone.
That is one of the reasons why ING DIRECT never went the route of branches. Instead we came up with what we think is a better alternative: Cafés. In Canada we call them Save Your Money Cafés, and they are located in Toronto, Vancouver, Calgary and Montreal. If you travel outside the country chances are you could come across a similar idea if you are visiting the United States, France, Germany, United Kingdom, Italy, Spain, Austria or Australia.
Our Cafés are special because there are no tellers or bank managers. Instead you'll find a friendly Direct Associate who can help answer questions, follow up on a request, or just walk you through a mortgage application. So along with that coffee you can get some one-on-one time with someone who cares about your account and how to best help you.
You may have come across Café staff in your neighbourhood as well at they are often helping out with local community events and supporting charities in their city.
So next time you are in Montreal, Vancouver, Calgary or Toronto visit one of our Cafés where you will experience what it feels like to be in a true savings environment. Our Cafés serve up generous portions of common sense and financial food for thought because learning about money shouldn't be complicated. It should be as easy as enjoying a cup of coffee with friends. Selling is not on our menu, but financial nourishment and being a good neighbour is.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
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We recently launched our new Children's Savings Account so that parents can show their children the benefits of saving. To really make this work I believe that children need to learn about finances from an early age.
It could start with a piggy bank or a savings account where they can put aside all or some of the money they receive as gifts. If they are old enough to do chores around the house or babysit and get paid, they can be taught how some of that money can be put away to save for something they really want instead of spending every penny they earn. This can lead up to a lesson in lending and maybe even a bit of education around interest.
Financial planning doesn't have to be dull. You can also make it fun by telling children a story. For example, one of Aesop's Fables is called The Crow and the Pitcher and is an easy way to convey the message of saving to younger savers.
A crow who was very thirsty found a pitcher used to carry water. But when the Crow put its beak inside, he found that only a little water was left on the bottom and he couldn't reach far enough down to get at it. He tried, and he tried, and was ready to give up. Then he had an idea. He took a pebble and dropped it into the pitcher. Then he took another pebble and dropped it into the Pitcher. He kept dropping the pebbles into the pitcher until at last the water came up close enough for him to drink. The moral of the story - Little by little does the trick.
And if your child asks you if the fable is true, you can show them this amazing video of rooks actually using pebbles to get water in a pitcher!
Link to the Video: http://news.bbc.co.uk/2/hi/science/nature/8181233.stm
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
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A few weeks ago I was interviewed about the value of high interest savings accounts. I did note that we are at "historical lows" and that for some people 1.20% doesn't compare to years ago when we could offer 4% or higher.
Canadians have historically been a nation of savers. This is one of the reasons why our citizens and our economy have been resilient in tough times. In the past few years we have not saved as much as we should have but still well more than our American cousins. Our recent survey supports this, showing that Canadians are saving the same or even more than they did in the past. (link)
Saving, even at the lower rates of today is fundamental to a sound financial household. With saving comes freedom, peace of mind, the ability to think about the future. Canadians need to continue to save. Regardless of rate, savings are safe, guarantee that your return and that your hard earned savings will not be lost. In times when interest rates are low there are a few things you really should consider when thinking about where your savings should go.
Aside from the rate, make sure there are no fees and no minimum balances required. Whether the interest paid is $50 or $500 over a year you are still in a positive position as opposed to leaving your money in an account with fees which could eat at any gains that you make. A high interest savings account can also help you with easy access to funds during these uncertain times or to help you build a nest egg. Think of it as a virtual piggy bank and try to put a few dollars away where you can't access them money easily and can just let it grow.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
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I'm asked the question from time to time:
"Why are you actively participating on Twitter and in Social Media?"
My answer is simple. I want to be part of the conversation and be closer to our Clients by listening to their needs. It will only make us better as an organization. This paid off ten fold this week when we were able to help one of our Clients via Twitter.
We had a complaint earlier this week, where a Client tweeted that they were having issues with their mortgage. Knowing that we had to act quickly, we connected internally to come back to the Client with a better understanding of what was happening. I'm happy to say that we were able to resolve our Client's problem and that the Client was enthusiastic with our responsiveness and ability to resolve the issue (said from her very own tweets!). By being involved in Social Media and participating in the conversation, we are able to help Canadians ease any stress related to banking.
It's not all gold and glory though – this takes work and commitment. It's an opportunity for us to get closer to our Clients and to provide them with another way to reach out to us.
Keep it coming, Canada. We're listening!
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
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These days, when it comes to our money, we all need to take a careful look at what's coming in and going out. Some expenses are obvious: gas, utilities, rent. But some aren't. Some can sneak past your radar, and one of those is bank fees.
During these difficult times, many banks have actually raised fees and service charges. In certain cases, they've even invented new ones. These fees are eating away at Canadians' nest eggs at exactly the moment when saving has become everyone's priority.
Is that right? I don't think it is.
A bank needs to be accountable for what it charges you just like any other business is. Hey, not every fee is unfair. It costs money to provide certain services to bank customers. Fair enough. But fees shouldn't just be a way to get more out of you. There should be a fairness barometer. Is it fair that a single withdrawal can wipe out months of earned interest? No. Is it fair that some banks charge $5 for transferring money out of an account, but then charge you a $20 inactivity fee for not moving money in or out? No.
What is a fair fee? Well, a fair fee is one that you knew about in advance and one where the amount of the fee is reasonable based upon the service you received.
With fees like this, savers can't win. And if savers aren't winning, we all lose.
So what needs to change? Canadians need to be aware and informed about the fees that we are paying. If it is not clear then we need to make sure we as, we understand. And we all need to monitor what we spend and ask ourselves if we're getting good value for it, because we have a role to play as consumers, too. A vigilant and informed consumer is a smart consumer.
If you'd like to be part of the conversation about unfair bank fees, then join us at fairfees.ca and speak up. Let's win the fight for fair fees.
For more information, visit www.fairfees.ca.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
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Welcome to DIRECT Talk! My name is Peter Aceto and I'm the President & CEO of ING DIRECT Canada. DIRECT Talk is a blog that I've created to speak directly to Canadian savers. I want to use this forum to share some of my own thoughts and feelings about issues that are important to all of us striving to be independent and financially 'fit'. To get things started, let me tell you a little more about myself.
I'm a proud Canadian, a husband, and dad to 3 busy youngsters. I joined this amazing team in 1997, when ING DIRECT was being born right here in Canada. If you can imagine, I was employee number 8! As with a lot of us here at ING DIRECT, the chance to be part of this seemed like fate. My orange journey actually began in a mechanic's shop, of all places, where I ran into Arkadi Kuhlmann, our founding CEO. He was the person who first inspired me to become a part of something special - ING DIRECT. Since those first days, we've been on a mission to build a truly new kind of business, and to change the way that banking is done in Canada so that savers can win. It's been a fantastic adventure so far! Along the way, I've worn a few hats during my nearly 13 years at ING DIRECT. I've worked in most areas of our organization, including Legal & Compliance, Risk Management, Operations, Sales and Marketing. That experience has given me a great understanding and respect for the people who make ING DIRECT work and makes me proud to have the job I have today.
I decided to start DIRECT Talk because I believe Canada's savers are at a crossroads. These days, every penny counts. People have more questions than ever about saving and borrowing money, about the costs of banking, and about their overall financial well being. Meanwhile, the banking business just seems to get more confusing, unclear and riddled with surprises. I want to help by offering some inside perspective and clarity, along with some frank opinions about the issues I think Canadian savers care about. I hope you find DIRECT Talk useful and thought provoking, and occasionally even inspiring! I'll certainly do my best to reward your time with every post.
Share a thought or two with me at chiefsavingsofficer@ingdirect.ca.
Be sure to follow me at www.twitter.com/CEO_INGDIRECT.
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