ING's Strategic Deepening of Van Lanschot Kempen Stake: A Catalyst for European Wealth Management Leadership

The European wealth management sector in 2025 is at a pivotal crossroads, driven by technological innovation, shifting client demographics, and a surge in demand for sustainable finance. Against this backdrop, ING Group's strategic deepening of its stake in Van Lanschot Kempen N.V. emerges as a bold and calculated move to cement its position in the evolving financial landscape. By acquiring a 20.3% ownership stake in the 300-year-old wealth manager, ING has signaled its intent to leverage Van Lanschot Kempen's independent expertise while aligning with broader trends in digital transformation and ESG-driven investing.

A Strategic Bet on Long-Term Value Creation

ING's acquisition of an additional 17.6% stake in Van Lanschot Kempen in 2025 was executed with surgical precision. The two-phase acquisition—first securing 7.2% in March 2025, followed by 10.4% after regulatory approvals—ensured minimal disruption to ING's Common Equity Tier 1 (CET1) ratio, maintaining its robust capital position. This financial prudence underscores ING's commitment to balancing growth with stability, a critical factor in an industry where regulatory scrutiny remains high.

Van Lanschot Kempen, with its strong heritage and focus on long-term client relationships, complements ING's broader strategy of expanding its wealth management footprint. The firm's recent capital return of €1.40 per share and its CET1 ratio above 17.5% demonstrate its financial resilience, making it an attractive partner for ING. By aligning with a well-capitalized, independent wealth manager, ING gains access to a client base that prioritizes personalized service—a niche that larger, more transactional banks often struggle to fill.

Competitive Positioning in a Digitally Transformed Market

The European wealth management market is undergoing a seismic shift. By 2030, the global wealth management software market is projected to grow to $14.5 billion, driven by cloud-based solutions and AI integration. ING's investment in Van Lanschot Kempen positions it to capitalize on these trends. Van Lanschot Kempen's digital capabilities, combined with ING's technological infrastructure, create a formidable platform for scalable, client-centric solutions.

Notably, 77% of wealth managers in Europe now view AI as a critical tool for expanding service offerings. Van Lanschot Kempen's recent focus on AI-driven portfolio management and client analytics aligns with this trend, while ING's own digital initiatives—such as its €2.0 billion share buyback program and investments in digital customer platforms—provide the capital and infrastructure to accelerate innovation. This synergy could allow the combined entity to outpace competitors like Avaloq Group AG and Addepar, which are also investing heavily in digital transformation.

ESG and Sustainable Finance: A Dual-Track Advantage

Environmental, Social, and Governance (ESG) investing has become a cornerstone of modern wealth management. ING's 2025 results highlight its leadership in this space, with sustainable financing volumes reaching €30 billion—a 23% year-on-year increase. Van Lanschot Kempen, with its ESG-aligned capital return strategy and focus on responsible investing, amplifies this advantage.

The partnership also benefits from regulatory tailwinds. The European Union's Sustainable Finance Disclosure Regulation (SFDR) and the growing demand for impact investing are reshaping client expectations. By combining ING's institutional scale with Van Lanschot Kempen's independent, client-focused approach, the duo is well-positioned to dominate the ESG segment. For instance, Van Lanschot Kempen's recent launch of a CO2e emissions tracker for retail clients in Spain—a feature that 52% of wealth managers fear AI-driven platforms could replicate—demonstrates its ability to innovate in sustainability.

Risks and Mitigation Strategies

While the acquisition is strategically sound, risks remain. The European wealth management market is highly fragmented, with over 200 major players competing for market share. Additionally, regulatory changes under Basel IV and the ongoing volatility in interest rates could strain capital ratios. However, ING's disciplined capital management—evidenced by its 13.6% CET1 ratio in Q1 2025—and Van Lanschot Kempen's strong liquidity position provide a buffer.

Another risk lies in the integration of Van Lanschot Kempen's independent culture with ING's corporate structure. However, Van Lanschot Kempen's commitment to maintaining its “independent specialist wealth management strategy” during its 2024 Investor Day suggests a clear alignment of values. This cultural congruence reduces the likelihood of integration friction, a common pitfall in cross-border acquisitions.

Investment Implications and Strategic Recommendations

For investors, ING's stake in Van Lanschot Kempen represents a compelling opportunity to tap into the European wealth management boom. The combined entity's focus on digital innovation, ESG integration, and scalable platforms positions it to outperform peers in both growth and profitability. Key metrics to monitor include:
- ING's CET1 ratio and its ability to maintain capital returns while funding strategic investments.
- Van Lanschot Kempen's asset under management (AUM) growth, particularly in ESG-focused portfolios.
- Cross-border expansion metrics, such as the adoption of multi-jurisdiction platforms in Germany and the Netherlands.

Investors should also pay attention to regulatory developments in the EU, particularly changes to the MiFID II framework, which could impact fee structures and client acquisition costs. However, given ING's track record of navigating regulatory complexity and Van Lanschot Kempen's proactive compliance approach, these risks appear manageable.

Conclusion: A Win-Win for ING and European Wealth Management

ING's strategic deepening of its stake in Van Lanschot Kempen is more than a financial transaction—it is a calculated bet on the future of European wealth management. By combining ING's capital strength, digital infrastructure, and ESG leadership with Van Lanschot Kempen's independent expertise and client-centric ethos, the partnership creates a unique value proposition.

As the European wealth management market grows at a CAGR of 11.7% through 2030, this acquisition positions ING to capture a significant share of the opportunity. For investors, the move represents a high-conviction play on a sector poised for transformation, with clear upside in both long-term value creation and competitive differentiation.