Erste Bank in Germany takes radical step

Germany is money country. The pandemic and before that digitization have already mixed up some of this truth. Yet cash is dear to the Germans. But the first bank is simultaneously putting an end to euro notes, ATMs and branches.

Branches remain closed: Erste Bank no longer spends cash

Raiffeisenbank Hochtaunus customers have recently received mail from their bank informing them of the upcoming move: by the end of November 30, all four existing branches will be closed, from the following morning everything will remain closed. Then there is no more money. “Deposit and withdrawal at the branch (counter and ATM) will no longer be possible in the future”, it is in the letter available to the portal of the financial scene.

In Bad Homburg, only the main building remains open. However, there is only advice given to customers, personally on site, online or by telephone. There is no cash there either. Deutsche Bank also wants to move away from cash, but not so radically.

The Raiffeisenbank Hochtaunus also stamps the FullService account. Customers can have one more maintain or open an online-only account that is free and has been offered for a long time. The accompanying Visa debit card allows free withdrawals up to 52 times a year from other financial institutions worldwide, explains CEO Achim Brunner (source: Biallo). This is also usually not a problem at the checkout in supermarkets.

The reason for the radical step: The branches are no longer profitable. According to Brunner, a total of two customers per hour have to visit the four houses and money is withdrawn ten times a day. In the future, they want to focus more on the national commercial real estate sector. That too free account is offered online to customers from all over Germany. An unusual step, because for Volks- und Raiffeisenbanken local orientation is actually part of the core of their business.

This is how you are safe with internet banking:

Some customers need to look at other banks

According to Brunner, this does not change anything for most customers, because the branches are hardly used. But you are in exchange with some. Brunner: “We want to be honest and say that we have a nice offer for many customers and that we are the right bank. But this truth also includes that other banks are a better fit for some customers.”

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