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ING U.S. Retirement Services Profile
In a race
that’s grown increasingly competitive, national DC
record keepers or anyone beyond smaller niche providers
must find ways other than organic growth to reach
“401kHeaven”.
Over the last few years,
the fastest growing DC record keepers grew as a result
of acquisitions, but none faster than
ING,
which purchased the former CitiStreet business.
Not only did the
acquisition put
ING
in a strong position in every DC market segment and
service model, it also made them the largest DC record
keeper in terms of plan sponsors, while positioning them
at number two and three, respectively, for participants
and assets.
Competitors once used to
scanning their rear view mirrors are now trying to keep
ING
in their sights.
Historically,
CitiStreet was best known as a direct sold large and
mega market 401(k), 403(b), and 457 provider with deep
in-roads into Smith Barney because of their common
ownership.
They had very little
penetration into the advisor market.
ING’s target,
on the other hand, was the small and micro 401(k)
market, along with 403(b) and 457 clients, and it
distributed through an expansive network of financial
advisors.
The CitiStreet acquisition
which closed July 2008 merged these two complementary
business models and created a firm with a unique value
proposition.
It also brought
ING
robust technology capabilities geared for larger plans,
as well as the plans, participants, assets, and new
talent.
The end result – a
comprehensive team of professionals with broad
management and sales experience in all markets.
Today, as
ING’s Dutch
parent prepares to separate the global banking and
insurance/asset management operations, scheduled to be
completed by 2013, market acceptance of the “new” ING
has been strong with a projected 20% growth in the small
and micro markets in the face of a flat market.
ING
is well situated to take a leadership position with mid
market plans based on their robust and diverse products
and service offering, building on their strong base of
former Smith Barney advisor plans.
401kHeaven is
reserved for record keepers that have the necessary
assets and participants to compete with larger
competitors and clearly ING
is one of the leaders now populating this hallowed
ground. In
addition, their robust TRO
(total retirement outsourcing) model makes them even
stronger than some that are focused only on 401(k)
plans.
Capitalizing on a swift and successful integration,
ING
is focused on bringing to the small and mid corporate
markets, as well as its adjacent healthcare, education
and government markets, the services developed by the
larger market group at CitiStreet.
With 67 external wholesalers, 31 internals, and a
network of field sales support and customer service
personnel around the country,
ING
is one of the very few, advisor focused providers that
can serve any size or type of plan.
Their more robust service model is also
benefitting TPA clients, which are a prime focus for ING.
Reaching over 6.4 million individual participants, value
add for ING
focuses on driving positive retirement outcomes.
Key to this effort is leveraging the capabilities
and expertise of the ING
Institute for Retirement Research and developing a keen
understanding of its customers.
The company’s brand promise of making it easier
to do business will resonate with the very busy Elite
5000 as a robust full service partner, whose book of
business might stretch from micro all the way up to mid
market. As many
advisors are concerned about the staying power of record
keepers with smaller books, they can take comfort in
ING’s size, focus, and commitment to
the DC market and to financial advisors, with whom they
have deep and long standing relationships.
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