German Bank Shifts Towards Online Consultations and Shuts Down Smaller Branches More Frequently
Deutsche Bank is boosting its video and phone support for private clients, even as it shuts down some smaller branches. In Frankfurt, the banking giant unveiled plans to enhance its on-site advisory services with increased video and phone consultations, thanks to the rising demand from customers who prefer this convenience over physical visits, especially with extended consultation hours. The bank also intends to upgrade its branch machinery, like installing new ATMs, and overhaul its mobile app by 2025.
On the downside, Deutsche Bank is rethinking its branch structure. A "low double-digit" number of smaller branches are set to close, and the bank is preparing to engage with the works council on this matter. The bank is also placing more emphasis on new formats such as Private Banking Centers, catering specifically to wealthier clients. Initial reactions to this concept have been overwhelmingly positive.
Dominik Hennen, Head of Personal Banking Germany at Deutsche Bank, commented, "In-person advice continues to hold importance, whether it's in branches or via video and phone. Our customers seek a modern, fully digitized offering, yet they appreciate the opportunity for personal advice through their preferred access channel. As more straightforward transactions shift to digital platforms, we can devote more focus to personal advice in our interactions with clients."
Deutsche Bank operates around 400 branches in Germany. With these measures, the bank is putting its earlier announced strategy in the private customer sector into action. Previous reports suggested a substantial, mid-three-digit million investment for the modernization of the private bank worldwide.
As more individuals manage their banking affairs at home with computers or smartphone apps, banks have been able to streamline their costly branch networks for years, make room for flagship outlets, or enrich them with digital options. As per the Bundesbank, the count of bank branches in Germany dropped below 20,000 for the first time by the end of 2023.
Deutsche Bank is expanding its video and phone advisory services, recognizing the rising demand from customers who prefer digital consultations to physical visits. Dominik Hennen, Head of Personal Banking Germany, emphasized that advising continues to be important, whether in person or digitally, as the bank seeks to provide a modern, digitized offering with opportunities for personal advice.
