Commerzbank - Head of Private Clients: soon no longer a reason to visit a branch
According to Commerzbank's Head of Private Clients Thomas Schaufler, the traditional bank branch will continue to lose importance in the coming years. "In a few years, you will hardly have any reason to visit a branch in terms of content. I believe that all banking topics will then be available via the advisory center, via online channels," the CEO of the Dax Group told Deutsche Presse-Agentur in Frankfurt.
"Nevertheless, there will always be customers who say: I like coming into the branch and I would like to do so." The branch will therefore remain "an important component" of the "omni-channel strategy", said Schaufler. The aim must be to provide customers with the same quality of banking services across a wide range of channels.
No plans for branch closures
Commerzbank, which still had a comparatively dense network of around 1,000 locations nationwide before the coronavirus pandemic, has radically reduced its branch network to 400 in recent years. "I feel very comfortable with our 400 or so branches at the moment," confirmed Schaufler, who has been in charge of Commerzbank's retail banking business since the end of 2021.
"We knew that customers would leave us if we closed 60 percent of our 1,000 branches. But it was significantly fewer than expected. Unfortunately, a few customers still left us in 2023, but thanks to new customers, we are plus minus zero." According to the latest figures, Commerzbank serves almost eleven million private and business customers in its private customer segment, which also includes the Comdirect online brand.
Longer opening hours?
Schaufler does not want to change the opening hours of the traditional branches for the time being. "I currently see no need for extended opening hours in our branches," said the Head of Private Customers. "The advice center, which is also available on Saturdays, fills the gap between physical sales and purely online access very well." Last year, Schaufler had expressed his openness to the idea of opening traditional branches on Saturdays if there was sufficient demand.
Overall, Commerzbank needs to "show customers even better where we can offer them added value", said Schaufler. Among other things, he referred to the financial analysis service, in which the bank analyzes a customer's income and expenditure at their request, for example to determine whether insurance can be bundled or whether there is money left over for savings.
Schaufler: Don't join the race for the highest overnight interest rate
Schaufler does not want to take part in the race to offer the highest overnight money rate, which has been back on track since the European Central Bank (ECB) reversed its interest rate policy in summer 2022. "We have not tried to outbid the overnight money offers, but to show customers what opportunities there are to beat inflation in the long term. Our aim is to turn savers into investors." In Schaufler's view, the strategy has worked: "We have more private customer deposits at Commerzbank than at the beginning of the year."
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- Despite Commerzbank's Head of Private Clients Thomas Schaufler predicting a decline in the relevance of bank branches due to digital advancements, he acknowledges that some consumers still prefer visiting physical branches.
- Schaufler highlights the importance of the branch as an "important component" of Commerzbank's "omni-channel strategy," ensuring consistency in service quality across various channels.
- In the wake of the coronavirus pandemic, Commerzbank has significantly reduced its branch network from around 1,000 to 400 locations, with Schaufler expressing satisfaction with the current number.
- The bank's strategy of reducing its branch network has had minimal impact on customer retention, with only a few customers departing Commerzbank in 2023 but their losses being balanced by new customers.
- Schaufler is not considering extending opening hours for traditional branches at the moment, as the existing advisory center and digital channels cater to customer needs effectively.
- The German Press Agency reports that Schaufler emphasizes the need for Commerzbank to better demonstrate its value proposition to customers, suggesting services such as financial analysis to improve savings and investment opportunities.
Source: www.stern.de
