The nearest bank is rarely within walking distance – more and more branches are closing. This trend continues. Cooperative banks in particular are continuing to thin out their branches.
For the first time, there are fewer than 20,000 bank branches in Germany. At the turn of the year, there were only 19,501 bank and savings bank locations staffed by employees across Germany. The Bundesbank announced this. That was 945 fewer branches than a year ago. Pure vending machine locations are not taken into account in the statistics.
“The increasing spread of online banking and the ongoing cost pressure have led to a streamlining of the branch network in virtually all banking sectors,” stated the Bundesbank. Because many people carry out banking transactions on their home computers or via an app on their smartphone, financial institutions have been thinning out their expensive branch network for years. According to a recent survey, more than 80 percent of Germans do their banking business Bitkom study on-line.
Online banking is becoming increasingly important
For the first time, the majority of seniors are using their bank’s online services. According to Bitkom, in the age group aged 65 and over it is 54 percent; a year ago the proportion was 45 percent. It is currently 92 percent each in the 50 to 64 year old and 30 to 49 year old groups, and 94 percent in the 16 to 29 year old group.
The financial institutions try to maintain their presence in the area away from fixed locations. This is done, for example, through video advice, advice centers with longer opening hours, including on Saturdays, with savings bank buses or shared branches across institute boundaries.
Large banks in particular are closing branches
According to the current Bundesbank figures, the pace of branch closures slowed last year. In the Corona years 2021 and 2022, the pandemic increased the trend towards online banking, which ultimately led to a significantly higher percentage of branch closures. In 2021, around ten percent of branches across Germany were closed; in 2022, the number of branches fell by around six percent.
The savings banks and state banks continued to operate most of the branches, with 7,104 locations at the end of last year. The cooperative banks, which include the Volks- and Raiffeisenbanken, have 6,588 branches. They thinned out their branch network particularly significantly. “According to the banks’ previously published plans, the downward trend will continue,” expects the Bundesbank.
At the end of 2023, there were still 1,403 financial institutions in Germany – 55 fewer institutions than a year ago. According to the Bundesbank, 52 mergers contributed to this, primarily among cooperative banks.