How bank branches are becoming increasingly less important

0
4
How bank branches are becoming increasingly less important


More and more customers do more than just make transfers online. A study predicts: Even more complex banking transactions such as borrowing will soon be done digitally.


More and more consumers not only check their account balance online, but also complete complex banking transactions digitally.


© E+/Getty Images
More and more consumers not only check their account balance online, but also complete complex banking transactions digitally.


The corona pandemic is ensuring that more and more consumers in Germany are using online banking. It’s not just about checking your account balance or making transfers via online banking.

The proportion of digital product deals is also likely to increase significantly within a short time, predicts the consulting firm Oliver Wyman. This means that consumers are increasingly concluding credit agreements and insurance policies completely digitally or opening accounts online.

Oliver Wyman expects that in 2022 around 60 percent of product deals will be made via online or mobile banking. In 2019, the share was 47 percent.

According to the forecast, the proportion of product deals in the branch will decrease accordingly – from 38 percent most recently to 29 percent in two years. The remainder is accounted for by transactions via call centers and, for example, mobile bank advisors. The current crisis leads “to a significant change in customer behavior and thus the use of channels,” said the consulting firm.

This is reflected in an “accelerating Loss of relevance of the branch“, Says Oliver Wyman partner René Fischer. The consulting firm expects the number of branches of banks and savings banks to decrease to around 21,000 by the end of 2022 – a decrease of more than 20 percent compared to 2019. Other observers also assume that the corona crisis will accelerate the death of branches.

Some financial institutions have recently announced significant branch cuts. At the end of September, Deutsche Bank announced that it wanted to close every fifth branch relatively quickly. Instead of 500, there will soon only be a good 400 branches in Germany – half as many as ten years ago. In 2010 the largest German bank still had 835 branches.

More: Banks have some catching up to do when it comes to opening digital accounts.

LEAVE A REPLY

Please enter your comment!
Please enter your name here