It is tantamount to a revolution in the German banking landscape: Raiffeisenbank Hochtaunus is closing all of its branches and is no longer providing its customers with cash. This makes it the first Volks- und Raiffeisenbank in Germany to take such a radical step. The number of bank branches nationwide has been falling drastically for years because more and more customers are doing their business online. So far, however, there has never been a bank that has completely withdrawn from the area.
From December 1st, the Raiffeisenbank Hochtaunus will close its four branches. Only the headquarters in Bad Homburg will remain. The first to report on this was the banking newsletter Finanz-szene. Accordingly, the money house also effectively eliminates cash transactions. In a letter to customers it says: “Deposits and withdrawals in the branch (counter and ATM) will no longer be possible in the future.”
Achim Brunner, the bank’s board member, explained the step to the financial scene as follows: “On average, we have two visitors per hour via the existing four branches, and the number of cash transactions was around ten per day.” It is saying indirectly that it is no longer worthwhile for its institute to maintain an infrastructure for money services across the board due to the lack of customer visits. Brunner is convinced that his bank is not the only one with this problem. “We are taking a step that many others, especially smaller cooperative banks, are also facing,” he told the finance portal biallo.de.
Raiffeisenbank Hochtaunus also wants to say goodbye to the traditional corporate customer business. The head office in Bad Homburg still offers on-site advice, but this should be limited to what is absolutely necessary. In the future, the institute intends to focus primarily on financing commercial real estate, nationwide. It has already expanded this business area significantly in recent years.
On the other hand, private customers who want to do normal financial transactions are no longer wanted in the remaining head office. The fee-based “full-service account” for branch customers will also be abolished. Private customers can only carry out transfers and other financial transactions via an online account. There are no longer ATMs in the bank, and money can no longer be withdrawn at the counter. Own customers can withdraw money from foreign banks with a Mastercard debit – 52 times a year free of charge.
The Raiffeisenbank Hochtaunus is thus saying goodbye to the traditional business model of the cooperative banks, which is to supply the population across the country with cash and financial services. The step is likely to cause a stir in the cooperative sector, especially since it also violates the regional principle. According to this, Volksbanks and Raiffeisenbanks should only offer money transactions to people in their business area.
And what should customers do who don’t want or can’t do online banking at all? asked biallo.de bank boss Brunner. “We want to be fair enough to say that we have a great offer for many customers and are therefore the right bank, but that truth also means that some customers are better suited to other banks,” he replied.