ING Groep has slashed the time it takes to build electronic trading software from weeks to hours by adopting an AI-driven coding technique known as 'vibe coding'. The approach is reshaping how the Dutch bank approaches its technology strategy, but it's also drawing attention from regulators.
What 'Vibe Coding' Means for Development Speed
Vibe coding relies on artificial intelligence to automate large portions of the software development process. Instead of developers writing every line of code manually, AI tools generate, test, and refine code based on high-level instructions. ING's electronic trading team now completes in hours what previously took weeks, according to the bank's internal reports.
The shift represents more than just a speed boost. It allows the bank to respond faster to market changes and roll out new trading algorithms without the usual bottlenecks. That's a competitive edge in electronic trading, where milliseconds can matter.
Challenging the Role of Third-Party Vendors
By bringing development in-house with AI assistance, ING is reducing its reliance on external software vendors. Many banks traditionally buy trading platforms from specialized firms. But vibe coding lets ING build and customize its own tools more quickly and cheaply. That threatens the business model of those third-party vendors, who now face a bank that can create bespoke solutions on the fly.
The move could push other banks to follow suit. If major lenders start developing their own AI-coded trading systems, the multi-billion-dollar market for trading software from vendors could shrink.
Regulatory Scrutiny Intensifies
The technique isn't flying under the radar. Regulators are taking a closer look at vibe coding and similar AI-driven development methods in finance. The concern centers on control and accountability. When AI writes the code, who's responsible if it produces a faulty trade or violates a rule?
ING hasn't disclosed which regulators are involved or what specific questions they've raised. But the scrutiny signals that banks can't simply adopt cutting-edge AI tools without oversight. The outcome could set a precedent for how financial institutions deploy AI in core operations.
For now, ING is pressing ahead. The bank sees vibe coding as a way to stay ahead in electronic trading while cutting costs. Whether regulators will let that continue without tighter rules remains an open question.
