Deutsche Bank is making strategic adjustments to its branch network in Germany, signaling a shift towards digital services and updated formats. The financial institution plans to close a “mid-double-digit number” of smaller branches while expanding its digital and advisory services. This move highlights the bank’s response to changing customer preferences and the growing demand for digital solutions. Interestingly, this development reflects a broader trend in the banking sector, where physical branches are being optimized in favor of enhanced digital offerings and multi-channel capabilities.
Historically, Deutsche Bank has been a key player in maintaining a significant physical presence in Germany. However, with the rise of digital banking, many financial institutions, including Deutsche Bank, are rethinking traditional models. In line with other global banks, Deutsche Bank is now focusing on digital transformation, aiming to provide comprehensive services through various channels while maintaining essential physical locations for in-person interactions.
What Are the Planned Changes?
The bank has announced that it will negotiate these changes with the Works Council, emphasizing its commitment to a nationwide presence. Deutsche Bank intends to enhance its video and telephone advisory services and will invest in its mobile app and other digital technologies. The addition of private banking centers and modern ATMs will accompany these efforts, creating a seamless blend of personal and digital banking experiences.
Why Is There a Shift Toward Digital Services?
Customers are increasingly favoring the convenience and extended hours offered by digital advisory services. Deutsche Bank has observed a positive response to video and telephone consultations, prompting plans to extend these services to wealthier clients across its private banking segment. This shift is driven by customer expectations for a modern, fully digitized banking experience that still allows for personalized advice.
Dominik Hennen, head of personal banking in Germany, reiterated the importance of personal advisory services.
“Deutsche Bank remains the bank for clients looking for high-quality advice,” he stated. “Personal advice is and will remain central — whether in the branches or by video and telephone.”
This approach underscores the bank’s strategy of complementing digital convenience with personalized customer service.
The bank also plans to host more events at its branches to foster community engagement, alongside installing updated ATMs. This reflects a dual focus on improving the customer experience both through technology and in-person interactions.
As financial institutions worldwide continue to optimize their operations, Deutsche Bank’s strategies highlight a careful balance between reducing physical branch numbers and enhancing digital capabilities. This balance is essential in meeting modern banking demands and retaining customer loyalty. Customer service remains a critical concern, as a significant portion of banking clients have cited poor service as a reason for switching banks, according to a PYMNTS and NCR Voyix report.
By concentrating on the integration of digital and personal advisory services, Deutsche Bank aims to align with contemporary banking trends. Providing a diverse range of services across multiple platforms positions the bank to cater to varied customer needs while maintaining an efficient and robust operational model.
