The move deals a blow to Media Planning Group, the incumbent since ING launched in the UK in 2003. PHD triumphed in a final shoot-out with MPG after OMD was knocked at an earlier stage.
The AAR handled the review process. ING Direct's creative will continue to be handled by VCCP.
Gina Fusco, the sales and marketing director at ING Direct, said:"MPG has played a key role in the ING Direct success story but after our long association we thought it was best practice to consider a small number of alternative agencies.
"Therefore, we drew up a shortlist of just four agencies (including MPG) and asked them to show how they could bring a fresh and challenging approach to how we do business.
"These decisions are always difficult but PHD showed a great understanding of our brand and demonstrated how they could add tremendous value as we continue to grow our savings business and launch new products ."
Marc Mendoza, MPG managing partner, added: "We are obviously disappointed to be parting company with ING Direct as the client has emphasised that MPG has played a key role in the successful launch and growth of the business in the UK over the past three years.
"MPG's aim now is to re-deploy the extensive experience and insights we have built up in the personal finance market as soon as possible."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.