Erste Bank in Germany takes a radical step

Germany is cash country. The pandemic and, before that, digitization have already mixed up some of this truism. Despite this, cash is still dear to Germans. But now the first bank is stopping the issue, almost putting an end to personal customer contact.

Branches are closed: Erste Bank no longer issues cash

Customers of Raiffeisenbank Hochtaunus have recently received mail from their bank informing them about the upcoming step: At the end of November 30th, all four existing branches will be closed, from the next morning everything will remain closed. Then there is no more cash. “Deposits and withdrawals in the branch (counter and ATM) will no longer be possible in the future”, it says in the letter that the portal financial scene present.

In Bad Homburg, only the main building remains open. There, however, only advice is 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 as radically.

The Raiffeisenbank Hochtaunus also stamps the FullService account. Customers can still have one keep or open an online-only account which is free and has been offered for a long time. With the associated Visa debit card, money can be withdrawn up to 52 times a year from other financial institutions worldwide free of charge, explains CEO Achim Brunner (source: Biallo). This is usually not a problem at the checkout in supermarkets either.

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 According to Brunner, a total of two customers per hour should stop by in the four houses, and money will be withdrawn ten times a day.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

This is how you are safe with online banking:

Some customers have to look for other banks

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