Deutsche Bank is planning branch closures: sheer mockery for Postbank customers

Deutsche Bank is planning branch closures: sheer mockery for Postbank customers

According to a report by www.stern.de, Deutsche Bank plans to close almost half of all Postbank branches. This unusual move is in response to customer complaints about poor service, particularly relating to standing orders, IT issues and inadequate customer support. Given the increasing shift to online and mobile banking, this move is not surprising as fewer customers physically come to branches. Banks say this could lead to cost savings by reducing the need for branch staff and rent.

Branch closures are a long-standing trend in the financial industry, driven by mergers, technological developments and the trend toward digital banking. Overall, the number of branches has halved in the last ten years. The Bundesbank reports that this shrinkage process can be observed in all banking sectors, with major banks, regional banks as well as savings banks and cooperative banks closing branches. According to an Economist survey of bank managers worldwide, 65 percent believe the branch model will be “dead” by 2026.

Branch closures are therefore expected to remain a common practice in the financial industry as banks look to reduce costs and focus on digital banking solutions. This could lead to a significant decline in branch presence and an increased focus on digital service offerings.