Deutsche Bank reducing branches, other European banks planning similar moves

(Patria) – Deutsche Bank plans to close one in five branches in Germany in an effort to cut costs and capitalize on new consumer habits adopted during the coronavirus pandemic.

Reuters writes that the reduction in the number of branches from 500 to 400 mainly concerns urban areas.

This move is one of the results of Deutsche Bank's 'spring cleaning' of global operations, which began in 2019 after the bank recorded losses for several consecutive years.

Compared to Great Britain and the Netherlands, where customers prefer digital banking, German banks traditionally operate through a large number of branches. Other European banks are also considering the option of reducing the number of branches.

Germany's Commerzbank is already in the process of closing 200 out of a total of 1,000 branches, and it is possible that the number of branches will eventually be reduced by several hundred more.

Deutsche Bank managers claim that now even clients who were not familiar with digital services are able to perform simple banking transactions from home. The same applies to more complex consultations, which are increasingly conducted by phone or video call, which the bank will strive to improve in the future.