At the beginning of February, Raiffeisenbank (RB) announced that its group had bought the entire Czech Equa bank from the British fund AnaCap Financial Partners. The bank wants to complete the transaction by the end of the second quarter of this year, subject to regulatory approvals. Then he plans to merge.
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Raiffeisenbank also seeks ING clients. Her situation is a little different. Raiffeisenbank does not buy the terminating bank, but gives its clients an exclusive takeover offer in exchange for a favorable interest rate on the transferred funds and also a financial bonus. We bring specific information in the questions and answers.
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Purchase of Equa bank
Almost 480,000 clients from all market segments.
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So far, nothing has changed for any client. The detailed timing of the conclusion of a transaction depends on when the transaction will be approved by the regulators. “We will inform all clients about everything important in a timely manner, always with regard to their user experience and satisfaction,” said RB spokeswoman Petra Kopecká.
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What will happen to clients who refuse to switch to RB?
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No changes will be made until the transaction is completed. Raiffeisenbank’s intention is to continue with the services as clients were used to at Equa bank, including current accounts and loans. In the event that the client decides to change, he only has to follow the standard procedure currently valid in Equa bank.
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“In the case of Equa bank, we do not plan to change the conditions, so clients do not have and will not have a reason to leave. On the contrary, we will add some additional benefits that are currently only available to RB clients. We expect that the number of clients will increase, not decrease, “says Kopecká.
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When will the transaction be completed?
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Both RB and Equa bank expect the transaction to be completed and the shares to be completed in mid-2021, subject to regulatory approvals. The operational integration should then be completed in mid-2022.
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Takeover of ING clients
375,000 retail clients received an exclusive offer from RB.
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What does Raiffeisenbank offer?
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If the client agrees to transfer the savings account to Raiffeisenbank, funds up to CZK 300,000 will bear interest at a rate of 1 percent for the first year (currently the rates on savings accounts on the market are below one percent) and the client will receive an additional CZK 500 bonus. The offer is limited to 31 August 2021: until then, the client must request a transfer.
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However, RB will not be the only bank that will strive to acquire clients. For example, ČSOB sends its clients an offer for a bonus of CZK 1,500 for those who transfer one hundred thousand crowns to its savings account or subsequently to mutual funds.
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What should clients who have already given their consent to the transfer of data to Raiffeisenbank have to do?
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The transfer itself can only start running with the approval of the Office for the Protection of Competition (expected in the coming days). RB bankers will then be able to address these clients. Clients do not have to go anywhere, at the moment it is enough if they click on the consent to the transfer of data in internet banking.
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Will the transfer be processed remotely or will it be necessary to come somewhere?
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In most cases, the communication can be resolved remotely or by courier. Only a part of clients with a higher portfolio will invite RB to a branch.
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What type of account will the money be transferred to and how will it be set up?
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To the Smart Account, the management of which is free of charge, including one debit card, withdrawals from domestic ATMs of any bank and the use of internet or mobile banking. At the client’s request, all set standing orders or direct debits will be retained on the RB account.
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What will happen to the resources in ING mutual funds? Will they deal separately?
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The transfer or termination of the investment portfolio will take place separately. If the client opens a new account at the RB branch, the transfer of funds will be part of the meeting. If he decides to travel online, the investment contract will be set up online and the investment will be transferred.
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Some existing funds will be possible to continue buying under RB, others will only be possible to hold or sell.
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“Above all, we will offer clients a favorable interest rate on the account – higher than they had so far and higher than usual on the market. Furthermore, we will enable the free transfer of funds, which is definitely not a matter of course, and subsequently the preservation of fee conditions and the portfolio of funds exactly as clients had at ING so far, “says RB spokeswoman Petra Kopecká.
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What will happen to clients who refuse to switch to RB? When and where will the money from the savings account and mutual funds be paid out to them?
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If clients do nothing, ING will send them a notice in the coming months. After the expiration of the notice period for ING Konto, the money will be sent to the account specified in the notice (the client can choose the account number in advance, or transfer the money to the existing transaction account before termination).
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Mutual funds can be sold by clients in internet banking. They can also be transferred elsewhere, just fill in the Distributor Transfer Form according to the instructions. Transfer other than to RB but may be charged.
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