Cash is becoming less and less important: banks are closing branches and no longer accepting cash

Cash is becoming less and less important: banks are closing branches and no longer accepting cash

In Germany too, cash is disappearing more and more. Due to a lack of demand, some banks are closing all branches or no longer accepting cash. Due to a shortage of skilled workers and low customer frequency, Kasseler Sparkasse, for example, is closing six branches and turning seven into self-service locations. According to an analysis by management consultancy McKinsey & Company, supplying and receiving cash costs banks around two billion euros annually.

Germans depend on cash - but here too the means of payment is becoming increasingly less important. Many banks are closing branches or no longer accepting cash. The lack of demand and the high costs are responsible for this. According to a study by C24 Bank, 37 percent of Germans did not go to a bank branch last year, reported the “FAZ”.

According to a report by www.businessinsider.de, due to the shortage of skilled workers and low customer base, the Sparkasse in Kassel is closing six branches and turning seven into self-service locations. Also due to low demand, Raiffeisenbank Hochtaunus is closing all branches except for the main office. A savings bank in Niederdorfelden near Frankfurt am Main is still open, but is no longer accepting cash due to a lack of staff. According to an analysis by McKinsey & Company, the supply and receipt of cash costs banks around two billion euros annually. According to the Deutsche Bundesbank, cash is the most common means of payment and is used for more than half of all everyday payments.

Analysis:
The increasing number of bank branches being closed and banks in Germany not accepting cash show the changes in the financial sector. The lack of demand for banking services in physical branches and the high costs of providing and accepting cash are key factors driving these changes.

Closing branches and eliminating cash is creating more self-service locations where customers can do their banking on their own. This allows banks to save costs and staff. The shortage of skilled workers in the industry reinforces this trend.

The development also shows that more and more people are doing their banking online or via mobile apps. This is also due to technological progress and the increasing digitalization of the financial sector.

The increasing use of online banking and digital payment methods is impacting the market and the financial industry. Companies offering digital payment solutions could benefit from this trend. On the other hand, banks must further develop their digital offerings and adapt to changing customer needs.

It remains to be seen how this trend will continue in the future and what impact it will have on the structure of the financial industry. The increasing adoption of digital payment methods could lead to a further decline in demand for cash and physical bank branches.

Source:
According to a report by www.businessinsider.de