Dutch bank ABN AMRO has announced its plans to wind down its consumer finance business Moneyou activities in the Netherlands and Germany, except for the mortgage activities.
The low level of interest rates for extensive period and the likelihood of this situation remaining to be the same in the near future has compelled the bank to take this decision.
The low interest rate has removed the differentiating factor for Moneyou in the market. Furthermore, the bank has surplus liquidity.
Moneyou has nearly 500,000 clients with savings and mortgage loans
Started in 2001 as an online mortgage label of the bank, Moneyou later introduced online savings accounts in 2008.
Presently, the consumer finance business has nearly 500,000 clients in both the Netherlands and Germany, mostly with savings accounts and mortgage loans.
In a statement ABN AMRO said: “Current Moneyou clients will be informed about the consequences on an individual basis from October. It is expected that Moneyou will be fully wound down in 2021. In the meantime, Moneyou will continue to be fully operational for all of its clients.
“For current mortgage clients, nothing changes: the Moneyou mortgage label will continue as part of ABN AMRO Hypotheken Groep.”
A few days ago, the bank had announced its plans to close down its trade and commodity financing operations, which could result in up to 800 job cuts. The closure is expected to take up to three or four years.
The move will also result in lessening the bank’s presence across the US, Asia, Australia and Brazil and affect up to 45% of client loans worth €18bn.
Reuters had quoted ABN AMRO CEO Robert Swaak as saying: “We are over-exposed to global sectors and we had more than our fair share of exceptional client files.”
Swaak also said: “We will serve clients in segments where we can achieve scale, so we will focus on the Netherlands and Northwest Europe, where we will invest and grow.”
