If this story is starting to resonate, it’s because it should. On a national or individual basis – U.S. or Canada – our debt levels are out of control. That the U.S. government pays $250 billion annually in interest payments alone is only one of the startling tidbits to surface in this drama.

According to this article, the U.S. government takes in $2.16 trillion in revenue each year. Their debt (currently $14.3 trillion) is six times more than their annual revenue. On an individual basis, that’s like earning $100,000 a year while carrying $600,000 in credit card debt. Not good.

Our gross domestic product to debt ratio is one way we determine a country’s financial health. It tells you how much money a country borrows in relation to the goods and services it produces and speaks to the nation’s ability to pay it back. Governments strive for a lower number. Right now, the U.S. has a debt-to-GDP ratio of 58.9 per cent or higher. By comparison, in Canada, that number is 34 percent.

We cannot ignore the parallels between the situation in the U.S and personal debt levels in Canada. As individuals, we can’t ask for an act of Congress or bill in the House of Commons to provide us more money to pay our bills.

When interest rates are at historic lows for a long time we can grow comfortable with high levels of debt. This is dangerous. When rates begin to rise it won’t feel good anymore and the time for fixing the problem will have come and gone.

Getsmarteraboutmoney.ca has some good things to say about finding a healthy personal debt ceiling. Between 30 and 40 percent (including your mortgage) is a reasonable amount. More and you will feel a strain on your budget.

Borrowing more and more cannot continue forever. Whatever the outcome, now is a good time to get informed on the U.S. debt situation and apply those lessons to your own personal finances. These political headlines should be reminders to us as consumers that the same debt dangers await. When you continue to buy big screen TV’s and bigger houses, this is how the spiral ends when there’s no more money left to be borrowed.

One way or another, the cost of borrowing money, which has been kept at artificially low levels to help boost the economy, is about to go up. In the last 12-24 months, short-term rates have prompted many of us to either buy a house or, and this is my hope, take advantage of rates to increase the amount or frequency of making our mortgage payments.

My concern about low rates is how Canadian households have used them as justification to borrow more and more money, which makes the prospect of a rate hike, no matter the size, a very big issue. I have read report after report about how much debt Canadians have taken on.  A June 2011 report from the Certified General Accountants Association of Canada states that one in 10 Canadian households couldn’t handle an unexpected expense of $500, and that another two in ten would have trouble dealing with an unforeseen expense of $5,000.

So when the rate hikes do come, what will it mean for the typical Canadian?

As I’ve mentioned in previous posts, for a lot of us it will mean reconsidering our existing debt, taking on less of it and paying it back as quickly as circumstances allow. If buying a home is in your future, it may also mean locking in a rate that suits your needs and your income.

When interest rates do start to rise, my sense is that it will be positive for a few reasons. First off, it is an endorsement of the overall health of our economy. Yet just as importantly, the rate hike will serve two additional purposes: for those that continue to overspend, it’s reality check time. This will be a good time to spend less and save more so that existing debt is paid off as quickly as possible.

However for the savers among us, a rate hike will have an equally positive effect. Those who’ve been able to save money on a monthly and yearly basis will be rewarded with higher interest paid to their accounts, which in turn will make more Canadians fans of saving money on a regular basis – another one of my hopes.

What is certain is that rising interest rates are going to force all Canadians to take a second look at personal finances. Things bought using credit cards, a mortgage with a variable rate – all of that is about to become more expensive with each passing day. What makes the most sense to me right now, with a rate hike on the horizon, is to be prepared by making changes today.

After all, wearing the captain ‘C’ on your sweater comes with huge responsibility, especially in a Canadian market and especially in a Stanley Cup final. You’ve got to lead your team on the ice during the game and afterwards when the tough questions get asked. Most importantly, you’re expected to win – or have a pretty good reason why if you don’t.

That’s the kind of pressure we put on the leadership and management of Canadian hockey clubs, which may have something to do with the fact that Canadians haven’t seen a cup north of the 49^th parallel since 1993 – “Canada’s deprived childhood on the ice,” as the Globe and Mail called it.

In the world of hockey and frankly all sports, there’s no denying that leadership drives success. Good teams have strong leadership and thrive on it when it matters. When you look at a roster as deep and as talented as Vancouver’s – from Bieksa, to Henrik and Daniel Sedin, Burrows, Luongo and Kesler – they have leadership to spare, though for whatever reason, they could not make that leap from Good to Great.

There’s no question leaders make the difference in any organization. A major reason why ING DIRECT has grown into the country’s largest direct bank is because we are constantly developing talented leaders who are able to shape and adapt to change – leaders who can innovate and develop other leaders; leadership that is deeply rooted and inspires meaning and purpose in every function throughout the company.

This element of our culture is manifested in a lot of different ways at ING DIRECT – be it in a successful launch like we had with our THRiVE Chequing product or in the way in we are constantly trying to improve our Client experience, by offering live chat, short response times and Canadian-based call centres to make sure banking with ING DIRECT is simple and enjoyable.

If you close your eyes and think for a moment – much like the Canucks have been doing during what I’m sure is an intense and painful period of self reflection – think of all the words you associate with leadership. They are words like responsibility, character, learning, transparency, self awareness, principles, commitment, loyalty, passion, vision, inspiration and purpose.

I believe these kinds of words are the core components in any kind of leadership design, be it hockey, direct banking or anything in between. They are found in nearly all great leaders.  The Sedins, Luongo and everyone else involved are no doubt looking at where some of those concepts got lost in the weeds, and how they can learn from the experience for next time.  Recall, that the Boston Bruins endured one of the worst collapses in NHL history losing 4 straight to Philadelphia in last year’s playoff run.  I suggest that without this leadership lesson they would not be Champions today.

“Leadership and learning are indispensable to each other,” John F. Kennedy once famously said. I don’t think anyone knows that better right now than our Canucks.

David’s had remarkable success with his bestselling book and ideas, and is set to release a revised version of his common sense guide to financial planning later in the Fall. He has a very clear, articulate way of breaking down personal finance basics; five minutes into his discussion and it was obvious why the café was standing room only.

In the 20-plus years since the release of the book’s first edition, David’s basic message has not changed: keeping debt at manageable levels is fundamental to healthy finances. Public and private debt levels in the developed world are “shocking,” he says, and according to him, different psychological and emotional reasons are a big part of why people find it tough to resist debt, and in particular lines of credit.

The simplicity and timeliness of his message is a big reason why David remains a much sought after public speaker. Canadians continue to carry significant amounts of debt, more than most of our counterparts around the world even, including Americans. The sobering facts are that more people than ever are going into retirement saddled with debt (14% of Canadians today versus 5% 20 years ago).

For most people, access to credit is abundant, even when they’re not trying to get it– a point referenced during David’s discussion on lines of credit. Financial planners will counsel a smart approach to saving, which often includes opening up personal lines of credit as financial protection. Yet when you factor in unexpected events, pressures, and desires – what most of us refer to as ‘life’ – it is clear to see how overspending and living beyond our means is an easy trap to fall into. I do not think it has to be.

While charting a financial plan can sometimes appear sophisticated and complex, it isn’t. Saving money and paying yourself first – two ING DIRECT and Wealthy Barber basics – are in my view, one of the soundest financial planning strategies there are, not to mention two of the most effective and simple.

Paying yourself first means taking some part of your income from every paycheque and putting it into savings (10 per cent of your gross income is ideal). But it also means being vigilant against taking on more debt than you need or can afford. With interest rates likely climbing in September or October, this is a strategy all Canadians ought to consider; especially now as the cost of making interest payments are set to jump.

The cornerstone to living a healthy financial lifestyle is saving. Building up savings systematically, taking on as little debt as possible and paying it back as quickly as you are able, and having a mortgage that suits your needs and your income are all things that people can do to make banking (and life) simpler and a lot less stressful.

A couple weeks ago, I was given a chance to travel to Haiti with the Canadian Red Cross. I didn’t know what exactly I was expecting to see while driving through Port-au-Prince. I was hoping to find a country in the midst of rebuilding – roads being repaired, homes being built, clean drinking water, food available and a feeling of optimism.

Two distinct observations hit me while walking and driving around the streets of Leogane and Carrefour-Feuille. First, I saw a country with a tremendous amount of work left to do. Evidence of the earthquake is still everywhere. Food, water, housing are still major challenges – rubble and garbage are everywhere.  Tent cities that I had thought and hoped would be either smaller or gone were ever present and massive under the sweltering Haiti heat. Second, I saw droves of international relief workers tirelessly working to help the Haitians improve their situation. There is no doubt in my mind that the money donated by ING DIRECT, its Clients and employees is in the right hands to make a difference.

Shortly after January 12, 2010, ING DIRECT, its employees and Clients through the Government of Canada’s donation matching program, raised over $1.2 million to help Haiti in its rebuilding process. Part of the reason I’d decided to take this trip was to see how that money had been spent. I was entrusted with this money and felt an obligation to ensure it was being used properly.

Funding has helped humanitarian groups like the Red Cross find ways to help the people of Haiti put the pieces back together. The focus has been on providing permanent shelter for the nearly 750,000 people who instantly became homeless and to provide safe drinking water to the inhabitants of tent cities that still encircle Port-au-Prince and in remote areas – none of which have sewers or piping. Water gets trucked around the island – in of itself a challenging situation to overcome.

This child who is flying a kite now has a resistant roof over his head thanks to donations to the Red Cross. The Red Cross movement has built more then 10 000 shelters in Haiti to help the families who lost their homes during the earthquake in 2010.  (Port-au-Prince). Photo cred: Sophie Chavanel

You wouldn’t think so, but among the challenges on the ground for a lot of these relief organizations is finding ways to combat misinformation. At a critical point after Cholera became an issue killing many and making others very ill, a rumour spread suggesting that the odd taste in the water was in fact poison. In reality, this was the mild taste and smell of chlorine allowing the water to be safe for all to drink.  If a rumour like that spreads (and it did), how, as a relief organization, do you get people to drink it?

The Red Cross continues to provide more than 1.8 million litres of water everyday to 55 make-shift camps in Port-au-Prince. Photo cred: Sophie Chavanel

The Red Cross and others have used the ubiquity of mobile technology to help them in their efforts. By texting hundreds of thousands of people to get the word out that the fear of cholera was only chlorine, they got people drinking clean water again. They’ve used this approach now over 2 million times to correct all kinds of misinformation through education and sharing.

These are challenging circumstances – much different than anything I have ever seen in business. But what is true in either a humanitarian relief situation or a challenging business situation is that people are the key to success. People who are inspired by a vision and choose to give their all to see that it is achieved.  Haiti will get back to where they were before and they have access to all the help and resources needed to allow Haiti to be a wonderful place if this is the path they choose for themselves.

I can say with certainty that all the money raised by ING DIRECT and its Clients has been stewarded responsibly. Accordingly, we have found new ways to help: At our Café in downtown Toronto, the coffee we serve is brewed with Haitian fair market coffee beans, with 100% of the proceeds going to the Red Cross.

I commend all the people on the ground trying to rebuild Haiti and in particular the Canadian Red Cross.  On behalf of ING DIRECT and its nearly 2 million Clients and its employees, I want to thank them for the experience I had there. It will stay with me for some time.

Hard to believe, but this year ING DIRECT is celebrating its 14^th anniversary in Canada. One of the ways we’re celebrating is by opening an ING DIRECT café in the heart of downtown Toronto near Dundas Square. For a bank that has never spent a cent on tellers, fancy chairs or pens on ropes, I can tell you that this is a major milestone.

Throughout our history, doing business online and over the phone is one of the ways we’ve been able to pay billions in interest to clients. Along with fellow Canadians, who have made clear they prefer to do their banking online or over the phone, when and how they want, ING DIRECT has redefined how banking can be done and demonstrated that the perception of a traditional retail bank can be changed.

Banking can be easy, fast and filled with wonderful service and learning. A bank’s physical space can also be something entirely different from what’s come to be known as a “branch.” It can be free of line-ups, deposit slips and people doing banking with tellers trying to sell you things you don’t want or need.

If you happen to visit our newest café location at 221 Yonge Street (@ Shuter), which officially opened last week, you’ll see how we think a retail bank should look like – maybe even what they will look like in the future. It’s a major departure from the bricks-and-mortar bank and leaps away from a “them-and-us-separated-by-a-counter” experience.

It is at once a place to drink coffee, get free Wi-Fi, chat about how to live a healthy financial lifestyle, bank on an iPad or just enjoy the view of a vertical garden. It’s also a place to come in and do your business; we’ve set up board rooms, desks and even multimedia equipment – things that entrepreneurs and individuals alike can use to communicate, collaborate and succeed.

This location and our other café spots in Calgary, Montreal, Vancouver and uptown Toronto are very innovative and “Orange” in their approach to the physical location of a bank. It’s more of a place to learn and discuss finances with other people than a place to solely complete a transaction; a place to bank responsibly and learn about saving and spending simultaneously (in itself, a novel concept).

What you will enjoy at 221 Yonge is what I believe you will see more and more from retail banks in the future. Hardly the norm for banking today but exactly what many Canadians want and even one day the new norm for a “branch.”

I find that when overseas for meetings, a lot of other people are following suit. As technology becomes more available and more affordable, it seems people are keeping their pens in their pockets and using their fingers and thumbs. More meetings are being done with only soft copy materials being circulated. And more people –myself included – seem to be shedding (shredding?) their reliance on printed pieces of paper to do business.

Despite the ubiquity of these portable technologies, there are plenty of highly successful people who still prefer the touch and utility of the printed page. Having been in that camp for years, I can’t say one approach is better than the other. One just creates less day-to-day waste, which is why I prefer it.

Since the 1970’s, we’ve been waiting for computers and technology to create paper-free, less wasteful environments. I’m not entirely sure we have done that (new technology creates waste as well), yet part of the reason I’m using a tablet is because I think the technology takes us one step closer to getting there.

Be it a new technology or simply being more efficient with a process, new approaches that cut back on waste are important. Businesses must continue to consider how to implement them, and in my view put those considerations ahead of profits. While eliminating any kind of waste is a great first step, to me it’s more about finding and putting into practice solutions that will improve the world around us for the generations to come.
For some time now ING DIRECT has made an effort to be a better environmental citizen. An example of this is a program we have called ‘Paper Kuts’, which is all about cutting back on paper. Many of our departments are automating processes which used to involve a lot paper, we’ve cut back on photocopiers and increased the number of scanners and when possible we use email instead of snail mail to communicate with our Clients. We still have a long way to go, but our culture which is founded on simplicity, innovation and being challengers has made these initiatives easy to integrate at ING DIRECT. An added bonus is that we’re saving time and money with less paper around.

As another part of this effort, ING DIRECT recently hired our first in-house sustainability expert – a position dedicated to helping us further understand and drive sustainability as an organization – which in turn will help us improve the number of green initiatives we have on the go. This is not a consultant but a full-time employee.

Of course, it’s always easier said than done. Even during Earth Hour last month, when the lights were turned off for an hour, I used my Smartphone as a light to read a menu.  Small challenges aside, it’s pretty clear to me that leadership – both at the bank and across Canada – needs to continue to discover ways to make these changes real, so that we don’t wait four more decades before actually being paper free.

It got my thinking about the history of music in Canada, and the dedicated pool of talented artists who by pursuing their passions collectively showcase what this country has to offer. They are trailblazers, without realizing as a group that they are. They put Canadian music on the global stage.

I was thinking about this and how it inspired me to join ING DIRECT nearly 15 years ago – to help build a bank that would change the way Canadians not only do their banking, but how they think about banking. A bank they would interact with in a different way – dedicated to service and value, and using technology to deliver an easy and fun banking solution.

An opportunity to trail-blaze.

Being a trailblazer isn’t easy: sticking to your convictions, forging a different path and keeping at it when others say it can’t be done is a lot tougher than following the pack.

There are great Canadians doing great things all over the world, but it’s the trailblazers who cut their own path and kept going – and didn’t forget their roots – that have really allowed a lot of us to make a difference.

Without even knowing it, they contributed to what it is to being Canadian, and how we are perceived both at home and throughout the world.

Nowhere is that more evident that in the Canadian music industry.

When you ask these trailblazers about how they feel about the difficult path they chose, they all seem to say the same thing: they chose it because it was fun and exciting for them to explore and be different. Their passion drove them forward; it’s only when you look back do you see what you accomplished.

I look back 15 years to ideas that at the time weren’t even thought of in terms of banking: Banking online? Banking with your phone? Providing service and response times measured in seconds and minutes not days and weeks.

But tell me it can’t be done and I’ll work all the harder to give it a shot. Every one of our 1,100 and growing team is the same way: as a group we are always willing to try new things and forge our way.

Just like the talented group I saw at the Junos – having a passion, pursuing it and making a difference.

It’s the interesting thing about being CEO. Everyone does it a little differently. Your day-to-day approach has a big impact on you, and also the world around you. I spend mine in a number of different ways. Meetings, discussing marketing plans (like the one we just pulled together for our THRiVE Chequing Launch) – I carve out a lot of time in my schedule for these things because they give me a chance to learn from people and stay connected to the business.

If you polled the most driven CEOs in the world about the best use of their time, I bet none would disagree that you can ever carve out enough time to talk with your two most important groups of people: your team and your clients. Someone taught me this early on in my career. I try and remember it every day.

I make a point of talking to clients every day, but often in a place where they look to ING DIRECT for answers: our call centre. Thousands of ING DIRECT clients call us daily looking for help setting up accounts or moving money around, and sometimes they actually hear from me on the other end of the phone.

How un-CEO you say? I think the opposite. On top of making time every day to respond to customer emails, tweets, and routinely meeting clients in our cafés to chat, I’ve found making this time in my schedule connects me with clients in a way expensive lunches never could.

At the end of a call, hearing that a client figured out a way to pay off their student debt, got advice on how to set up an account for a newborn, or now has a different perspective on retirement savings, tells me not only are we reaching clients, but that our business is making a difference and is functioning like it’s supposed to.

Business intelligence comes from a lot of different places. Hands down, I think the best comes first hand from clients themselves.

“Fees,” they’d say. “I’m paying too many fees to access my money.” No matter the dinner party, the answer stayed the same.
A lot has changed since we launched ING DIRECT in 1997. More people continue to use direct banking to save money and are increasingly taking advantage of the products that help them do it. Sadly though, too many Canadians are still getting charged to access their money, paying on average $185 a year in fees just to maintain a simple chequing account. Many Canadians pay well over $300!

Getting a bill to pay our bills doesn’t make sense. So seven months ago, ING DIRECT completed the development of a chequing account that had no fees for daily banking – one that actually pays interest as well. Something Canadians have never seen before.

I’m proud to say that today marks the official national launch of that chequing account – THRiVE Chequing – a daily no fee chequing account that actually pays interest. It gives Canadians a way to make payments, deposit, and withdraw or transfer money for free. It also gives clients access to over 2,400 free ABMs across the country. For years Canadians have been asking us to allow them to make ING DIRECT a bigger part of their daily lives – that day has arrived.

So, it’s an exciting day for a few reasons. Firstly, friends will no longer need to endure my banking questions at dinner parties any longer. But more importantly, Canadians now have a choice and will be able to have a chequing account that will help them save both their time and their money.

I’m positive that with the ING DIRECT THRiVE Chequing account, we are once again delivering on our promise of giving the power of saving to all Canadians and giving Canadians the kind of choice they deserve.