In a country where cash has been king for decades, Deutsche Bank will stop allowing customers to pick up cash at its counters.
There is a German adage that «Geld Stinkt Nicht,» which translates into «money doesn't stink,» and helps to explain the country's strong, and perhaps a stereotypical, preference for cash over the years. Deutsche Bank is seeking to change that, according to a report in the Frankfurter Allgemeine Zeitung «FAZ» (in German) on Wednesday.
In tapping into another German trait, that of frugality, Lars Stoy, who heads domestic retail banking operations of Germany's largest commercial bank said at an investor conference that «In the future, I don't want to offer cash in the branches anymore, because holding cash incurs costs.»
While not specifying a timeline for the changes, Stoy said that cash would only be offered in a few large centers and that generally, he wants to further reduce the number of branches in Germany.
Return to Profitability
«The main task of the branch is sales» along with "advising customers on investments, mortgages, to a certain extent on consumer loans and insurance.» Once that is the case, then the branches will be profitable again, Stoy said.
Moreover, the plans are in response to changes in customer behavior, with the trend toward cashless payments significantly increasing, while at the same time demand for personal advice is also on the rise, Stoy said.
In terms of cash supply, Deutsche Bank will maintain a nationwide network of ATMs adding that money can also be withdrawn at supermarkets or gas stations.
