Jul 22

CONSUMERISM & FREEDOM: The Burden of Buying

posted 4:26 PM Jul 22, 2010 by Peter Aceto under Savings


From United Nation surveys to informal news reports, Canada has always been recognized as one of the best places to live in the world. And that’s no surprise. We have a free and open society that, most of the time, provides a balance between our personal wants and the needs of our greater community.

Many define “their freedom” as the ability to do whatever they want – from the simple decision of choosing what type of car to drive to the more serious of voicing support for a preferred political party or cause, or having the freedom of religion to safely and openly express our beliefs. I can understand wanting the freedom to express your beliefs, but I want to challenge the more simple idea that our ability to buy what we want is also a key factor in defining our freedom.

There is no doubt that having the money to buy what we want feels good. In fact, there are many studies that demonstrate that shopping can create similar feelings within us as certain drugs. Hey, we’ve all experienced the compelling urge to buy something special for ourselves – something to pick up our mood when we’ve had a bad day, or to celebrate when something has gone well.

Like most drugs, the feeling may be wonderful for a short time (so I’ve been told), but when the buzz wears off (or, in the case of a purchase, the newness) it doesn’t feel quite as good, does it?

Over the years of talking to fellow Canadians, I have seen how consumerism has taken away some of our freedom instead of providing the happiness and fulfillment many of us look for in our daily lives. I also want to clarify that I’m not talking about buying the basics needed for your everyday existence such as food, housing and clothing. I am talking about buying items that are beyond our means and that are not critical. For example, having a roof over your head is important. Having a sexy car or that 60 inch flat screen television isn’t.

So what happens when we spend more than we make? Well, research indicates that a major worry for many Canadians is retirement. How much will I need? What should I invest in? How long will I live?

Part of the worry comes from a feeling of lack of control, not feeling confident when trying to plan for the future, and the uncertainty of what could go wrong between now and that day – retirement day.

People used to look forward to retirement and planned for busy times of travelling, visiting family, and maybe even going back to school. But those plans seem less possible these days.

So do we just live in fear and worry? No, I believe that finding that freedom isn’t difficult and that most Canadians are more than capable to make financial decisions on their own. I also believe that when they do, they’ll feel much more confident about their future and a happy retirement.

Picture it like this: consumption and over-spending are like a jail cell that keeps us from our freedom. And our worries about our future – the future of our families – are the bars on the jail cell. We can see through the bars but our fears and worries hold us back from living a beautiful life. Our fears and our worries also stop us from living with a feeling of true freedom.

But there is a way out of the cell and you have the key. The ‘key’ to that door is living a lifestyle that is financially conservative and in control. It means saving today, systematically planning our saving and investing, avoiding high service fees, and no more superfluous spending. Once you take control which you can start today, you’ll begin to feel better about your financial future.

Spend thoughtfully, not impulsively. Keep your debt down and pay it off as soon as you can. Take control, stop worrying and be free.

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Jun 11

G20 is not just about fake lakes and bad traffic, it’s about you

posted 4:27 PM Jun 11, 2010 by Peter Aceto under Savings


The media is filled these days with G20 stories about traffic nightmares in downtown Toronto, a fake lake, and fences being built to manage the expected surge of protestors. But when I think about the G20, I think about you, our customers. I think about some of the real issues at stake at this meeting, and the fact that action plans decided by world leaders could have a very real impact on your family’s finances. To be honest, I also think about why the meeting will cost $1.1 billion. But mostly, I think about the impact on our customers and all Canadians.

The debt crisis in Greece and the European Union’s attempt to stabilize it are a key issue. In fact, the World Bank has warned it could spark a second recession. Many world leaders now fear a second wave of financial instability – a so-called “double-dip” that might see things temporarily get worse before they get better.

For our customers, these macro issues have much more of an impact on your family finances than stories about spray painted bus shelters or massive lines of security guards. Those make good visuals for television, but the real issues in our global economy aren’t quite as sensational, even though their potential impacts are much more meaningful.

For example, one issue on the table at the G20 is the global banking tax proposal. Anything that could increase the cost of borrowing for consumers is not something ING DIRECT could support, and in fact the Canadian government, as the G20 host, does not support the banking tax. This is a great show of leadership on the world stage for Canada. But analysts are predicting that some form of a banking tax will likely be introduced in the US and in several debt-laden European countries.

The story for Canadian consumers has been a good one so far this year. Our economy grew 6.1 per cent (on an annualized basis) in the first quarter of 2010, its largest quarterly growth figure in a decade. The Canadian economy is expected to grow 3-3.5 per cent in 2010. More people are working, salary increases are back for many workers and housing values have started to rise again. These are all good indicators for the household finances of Canadian consumers. Let’s hope the media covering the G20 focus on the important issues and financial considerations Canadians face day-in and day-out. They are too important to be overshadowed by fireworks and spray paint.

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Apr 7

Save Anywhere™, anytime.

posted 4:28 PM Apr 7, 2010 by Peter Aceto under Savings


Life happens so fast that we often don’t realize how much our lives have changed in the past 10 years. The world is evolving at the speed of light (or at least feels that way sometimes) – especially in the area of technology with exciting advances being made every few months (if not hours!).

Did you know that a hundred years ago the telephone was being marketed as the new marvel of the century? And that in 1910, many homes were being wired so the homeowners could use amazing new inventions like vacuum cleaners and washing machines. Yes, that was only a hundred years ago. Today we have email, Twitter, and Facebook. We watch television on our computers, or we just check out YouTube. And getting lost is almost impossible if you have a GPS in your car.

As we all get carried up and away, with the waves of progress there are times when a change is worth noting.

On March 24th, ING DIRECT launched Mobile Banking applications, which will allow our customers to Save Anywhere™ using their mobile device. The day was celebrated with over 300 Clients, partners, staff and leaders in the field of social media who all joined us at the Kool Haus (The Guvernment) in downtown Toronto. This venue, which has played host to major artists like Stone Temple Pilots, was transformed into a party that was bursting with orange pride – from the orange-themed food and drinks to the lights and displays. In one corner of the room guests were able to follow attendees’ Tweets (www.orangetweets.ca), shown on a large screen, and on the other side they could watch the funny teaser videos that went up on YouTube.

David Bradshaw, Head of Sales and Service, played emcee for the evening and kicked things off with a thanks to everyone for attending. I took to the stage and faced an enthusiastic crowd who were all busy tweeting, cheering, and happy to be part of this incredible launch. As one person tweeted – “no other bank holds a party like ING DIRECT!”

The evening was topped off by a performance by Canadian artist, LIGHTS (winner of the 2009 Juno Award for Best New Artist) who impressed the crowd with her amazing voice as she performed her hits backed up by two band mates.

The evening ended with a small gift for everyone as they exited, picking up their custom made t-shirt that they had ordered when they arrived.

We hope that you take a moment sometime this week to download the application for your mobile device. ING DIRECT believes in making banking easy, simple and accessible. It isn’t just about saving money; we also want you to save time. And as the first bank in Canada to provide access for both iPhone and BlackBerry users, we want to ensure that all of our customers have access, if possible.

Like catching the crest of a wave, our goal is to move boldly forward to provide Canadians with all the tools they need to manage their money. In a February Globe and Mail article, Bob Hedges (managing partner at Boston-based consulting firm, Mercatus LLC) commented on Mobile Banking, “We’re at the tipping point in terms of adoption,” and “Over the next five years this will become more important than online banking.”

We’re not sure if it will overtake online banking, but we are confident that, like the telephone and vacuum cleaner in 1910, Mobile Banking will help Canadians save time and money, anywhere, anytime. My thanks again to all who attended and I encourage you all to download the apps and start saving your money, as well as your time!

DOWNLOAD MOBILE APPS

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Mar 1

Meeting and Tweeting, and mingling in Toronto

posted 4:30 PM Mar 1, 2010 by Peter Aceto under Savings


On January 25th at the Dark Horse Café in downtown Toronto, over 120 attendees discovered that ‘yes, there is a real person behind the tweets’!

The event was a Meet & Tweet in which we invited everyone in the Toronto area who follow ING DIRECT tweets (mine and also SuperStarSaver) to come down to the café to meet up and chat in person. For many, social media is one of those still undefined and intangible communication tools – but last night we met and talked and tweeted. And it was great!

We chatted about the use of social media channels like Twitter, Facebook and YouTube and how they have changed our lives. During the tweet up we also heard from Matt Hartley, Technology Reporter at the National Post about online savings tools/communities, and from financial blogger Preet Banerjee, who writes for Wheredoesallmymoneygo.com. They talked about the use of social media as part of their work and how they are still exploring its many uses.

For everyone in the room the feeling was one of adventure and excitement since the future of social media is still being explored. I can imagine the feeling would be similar to when the telephone was introduced to homes and communities, letting us communicate faster than traditional written letters. Or take the example of email which evolved in the 60s and 70s from an internal tool used by a small group to its world wide use today.

At the same time it’s hard sometimes to go down a road that is less familiar. There are those who feel it is a waste of time and energy to use social media, especially for a CEO. I guess it’s hard to shake those old banker images but for me, this event was worth any criticisms. ING DIRECT is not your traditional bank, we never have been and we never will be. And if we can reach out to hear what our customers are thinking and saying in a faster way, we want to be a part of that too.

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Mar 1

13 Years later and 945 voices to ‘Rally’ for saving

posted 4:29 PM Mar 1, 2010 by Peter Aceto under Savings


Because ING DIRECT offices are located across Canada – from Vancouver to Montreal – we don’t get the chance to get together that often. Even in Toronto, we have two offices which are close to each other, but still separated by enough of a distance that you don’t get to see some colleagues for weeks.

But even though we are separated by geography, we are all connected in our dedication to our work, to providing you the best products with no fees or minimums, and to bringing the power of saving to all Canadians. And we do this best when we get together at a Rally to celebrate.

We did this recently, and let me tell you it was big! ING DIRECT employees came together as a team to reflect – together – on where we’ve been and where we’re going. I personally believe that you learn from the past by honouring the hard work and dedication of everyone who contributed to your current success.

For myself, the journey started with Arkadi Kuhlmann, current CEO of ING DIRECT USA. He was my inspiration for joining ING DIRECT, as the 8th employee.

Time Magazine called Arkadi Kuhlmann “ING DIRECT‘s Man on a Mission.” He helped create the idea of a direct bank because he was annoyed by the entrenched, homogenous practices of old-style banks and felt there was no consumer choice in the marketplace of a different, more cost-effective way of banking. He felt, as we still do, that old-style banks fail to offer true value or promote savings and that it was ridiculous for customers to have no choice but to pay astronomical bank fees. And, Arkadi believed that it wasn’t too much to ask that a real person answer the telephone.

He had a vision for a new kind of bank… a vision that really captured my attention… a vision every employee shares in their work each day for ING DIRECT.

We started laying the groundwork in 1996, preparing for what would become ING DIRECT, which eventually led to the launch of our “Save Your Money” campaign in 1997 when we officially opened for business offering Canadians a new way to do their banking. That year, we also opened the Toronto Café, the first of our four Cafés. Oddly enough I missed the official 1997 launch. But I had a good excuse. I was getting married that very day!

Our first commercial introducing us to Canadians began with these words: “Out here, you have real power. People compete for your business.”

We talked not about being a bank, but being “something different.” And we introduced our cause – to help Canadians save their money. This was our chance to make a difference.

We started by offering our Investment Savings Account and long-term GICs, but what most people remember is the emergence of our great TV commercials involving Frederic De Groot, who is actually an actor famous for playing a detective on Dutch television.

And we started to grow. We launched our lending program and U.S. dollar savings accounts in 1998. By 2003 we had one million customers, and in 2004 we launched the low-cost “un-mortgage”, a revolutionary way for a bank to view their customer’s mortgages.

Then in 2007, we celebrated our 10th anniversary, but with no intention of slowing down. In 2008, we launched the Streetwise Funds and became the first bank to offer Canadians a Tax-Free Savings Account.

By living our brand every day in every interaction with you, our customers – we’ve become the No. 1 direct bank in Canada, the 7th largest consumer bank and 6th largest mortgage producer in Canada.

And we thank you for this support and success. After all, this is a two-way relationship; one we hope you also feel has enriched your life in a small or big way. You’ve told us you think we are a leader in savings, an innovative company, and a pretty cool bank! We wish you could have attended our rally, but rest assured, your spirits as customers who believe in the power of saving was present.

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