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Goodbye cash: more and more bank branches are closing due to a lack of demand and high costs.
According to a report by Business Insider, cash is also disappearing more and more in Germany. Triggered by a lack of demand, the first banks are closing their branches or no longer accepting cash. Kasseler Sparkasse, for example, is closing six branches and converting seven locations into self-service locations. According to an analysis by McKinsey & Company, supplying and accepting cash costs banks around two billion euros annually. The lack of demand and the high costs are responsible for the fact that cash is becoming less and less important. According to a study by C24 Bank, 37 percent of Germans did not visit a bank branch last year. This shows that the use of cash…
Goodbye cash: more and more bank branches are closing due to a lack of demand and high costs.
According to a report by Business Insider, cash is also disappearing more and more in Germany. Triggered by a lack of demand, the first banks are closing their branches or no longer accepting cash. Kasseler Sparkasse, for example, is closing six branches and converting seven locations into self-service locations. According to an analysis by McKinsey & Company, supplying and accepting cash costs banks around two billion euros annually.
The lack of demand and the high costs are responsible for the fact that cash is becoming less and less important. According to a study by C24 Bank, 37 percent of Germans did not visit a bank branch last year. This shows that the use of cash among the population is declining.
The closure of bank branches and the rejection of cash have various effects on the market and the financial industry.
- Veränderung des Kundenverhaltens: Die steigende Nutzung digitaler Zahlungsmethoden führt zu einem veränderten Kundenverhalten. Banken und Finanzinstitute müssen sich auf die Bedürfnisse der Kunden einstellen und mehr digitale Lösungen anbieten.
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Shortage of skilled workers: The closure of bank branches leads to a potential loss of jobs in the financial sector. The shortage of skilled workers can have a negative impact on the quality of services in the industry.
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Cost savings: If banks no longer offer and accept cash, they can save significant costs. The resources released can be invested in other areas, such as digitalization and customer service.
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More security: The continued decline in cash transactions could improve security in the banking and financial sector, as digital transactions are generally more secure than cash transactions.
It is important that banks and financial institutions keep pace with the changing needs of customers and provide innovative digital payment solutions. The trend away from cash is likely to continue and it is crucial that the financial industry is prepared.
Source: According to a report by Business Insider
Read the source article at www.businessinsider.de