ING's Strategic Shift to Private Markets: A Model for Banking Growth in a Low-Yield World

In an era of persistently low yields and fragmented capital markets, ING's strategic pivot to private markets represents a paradigm shift in banking growth models. By establishing a dedicated private markets unit within its wholesale banking division, the Dutch financial giant is redefining operational efficiency, systemic leverage, and client-centric specialization. This approach not only addresses the constraints of legacy banking systems but also positions ING to capitalize on the surging demand for alternative assets-a trend reshaping global finance in 2025 and beyond.

Operational Repositioning: Automation and Constraint Mitigation

ING's 2025 launch of its private markets unit underscores a deliberate focus on operational repositioning. Led by Maarten Koning, the unit aims to streamline deal processes through automation, reducing manual workflows and legacy system bottlenecks that have historically hindered private market transactions. By embedding automation into decision-making and risk assessment, ING has significantly shortened time-to-close and lowered processing costs compared to traditional banks, which often disperse private market activities across generalized teams or outsource risk evaluations.

This operational overhaul aligns with broader industry trends. As noted in the 2025 Global Private Markets Report, banks are increasingly prioritizing system design over asset scale, leveraging smarter constraints to optimize returns without proportional increases in capital or headcount. ING's expansion of its private markets team-from 30 to 40 members-reflects a calculated balance between specialization and scalability, avoiding the pitfalls of overexpansion while maintaining agility in a volatile market.

Client Specialization: Deep Partnerships Over Broad Reach

Unlike traditional banks that adopt a "supermarket" approach to private markets, ING has explicitly chosen to focus on deep, localized partnerships with general partners (GPs) such as private equity firms and sovereign wealth funds. This strategy enables the bank to deliver bespoke analytics and tailored solutions, addressing the unique needs of alternative capital providers in a sector where customization is critical.

The shift toward client specialization is particularly relevant in a post-2024 environment marked by tepid dealmaking and declining fundraising volumes. While many institutions struggle with fragmented investor demands, ING's targeted approach allows it to harmonize investment practices across geographies and asset classes, enhancing alignment with client objectives. This contrasts sharply with traditional models, where siloed operations and generalized service offerings often fail to adapt to the nuanced requirements of private market participants.

Systemic Leverage: Efficiency Gains and Risk-Adjusted Returns

ING's model also demonstrates systemic leverage through its integration of automation and client specialization. By isolating private market decision-making within a dedicated unit, the bank minimizes cross-functional redundancies and accelerates value creation. This structural advantage is critical in an industry where operational inefficiencies-such as prolonged due diligence cycles and inconsistent risk modeling-have historically eroded margins. As macroeconomic uncertainties intensify, banks that fail to modernize risk falling behind in risk-adjusted returns. ING's emphasis on constraint repositioning-replacing rigid legacy systems with agile, automated frameworks-positions it to outperform peers in both cost efficiency and capital deployment.

Broader Implications for the Banking Industry

ING's strategy offers a blueprint for systemic adoption across the sector. The private markets unit's success hinges on three pillars:
1. Operational Streamlining: Automation reduces friction in deal execution, enabling faster capital deployment.
2. Specialized Expertise: Deep partnerships with GPs enhance trust and alignment in an asset class prone to information asymmetry.
3. Scalable Constraints: Systemic design prioritizes growth without overextending resources, a critical advantage in a low-yield world. According to the 2026 banking outlook, such innovations are urgently needed.

For traditional banks, the lesson is clear: survival in the post-2025 landscape demands a departure from asset-centric models toward operational and client-centric innovation. ING's cautious yet ambitious approach-expanding its private markets unit while avoiding the pitfalls of overreach-provides a compelling case study for institutions seeking to unlock hidden growth in an increasingly competitive arena.

Conclusion

ING's strategic shift to private markets is more than a response to low yields; it is a reimagining of banking's role in capital formation. By repositioning operations, embracing automation, and prioritizing client specialization, the bank is not only navigating current challenges but also setting a precedent for systemic evolution. As the 2026 outlook underscores the need for agility in the face of macroeconomic volatility, ING's model offers a roadmap for banks to thrive in an era where efficiency, not scale, defines success.