Postbank is planning drastic branch reductions in Bavaria: What does that mean for customers and employees?

Postbank is planning drastic branch reductions in Bavaria: What does that mean for customers and employees?

Postbank plans to significantly reduce its branch network. After an IT breakdown and blocked accounts, the bank is once again making negative headlines. According to Claudio de Santis, who is responsible for private customer business, it is clear that Postbank's branch network will be thinned out. The exact number of affected branches in Bavaria is not yet known, but nationwide the network is to be reduced from around 550 to around 300 branches by mid-2026. Bavaria would be affected in an above-average percentage, as a fifth of the locations are currently located there. This means that there would only be 34 branches in Bavaria where customers receive personal support and 16 branches with exclusively banking services.

The planned cuts not only affect Postbank customers, but also those who want to use postal services in the branches. Postbank does not want to close its branch network, but rather offer a “streamlined branch network” and develop into a “mobile-first” bank. This means that the digital offering is being expanded and customers can conveniently use all products and services via their mobile phone or tablet. This corresponds to the behavior of customers who are increasingly using digital banking services. However, customers who prefer personal advice on site or have less trust in the digital banking sector will have to travel longer to their bank branch in the future.

The planned branch closures have met with criticism, particularly from pensioners, for whom Postbank, like the former Deutsche Bundespost, is an important contact point. In addition, post office customers have also received service in the bank's branches, which will now no longer be available as a result of the planned cuts. The post office now has to create replacement offers in agencies, for example in grocery stores.

The employees of the Postbank branches in Bavaria are currently uncertain about their professional future. According to Verdi Bayern, over 900 employees are affected and negotiations are underway with employee representatives to determine the final numbers and locations. The union is calling for quick clarity for those affected and an extension of the exclusion of redundancies for operational reasons, which applies until the end of January 2024.

The planned branch closures have the potential to impact the market and the financial industry. Customers have to adapt to Postbank’s new “mobile-first” concept and increasingly carry out their banking transactions digitally. In addition, customers who want personal advice could look for alternative banks that continue to offer branches. Postbank branch employees may need to look for new job opportunities. The reduction of the branch network could also have an impact on other banks that currently cooperate with Postbank or offer services in their branches.

Source: According to a report by BR24 (https://www.br.de/nachrichten/wirtschaft/kahlschlag-bei-der-postbank-viele-filialen-muessen-close,TuqOZZN)