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Commentary on VR Bank branch closings: farewell to the farmer's bank?

2020-05-23T06:05:01.572Z


Sebastian Tauchnitz considers the branch closures of the VR Bank to be a mistake that could cost the financial institution dearly.


Sebastian Tauchnitz considers the branch closures of the VR Bank to be a mistake that could cost the financial institution dearly.

Choosing a financial institution has a lot to do with trust. It is helpful if the bank has been on site for a long time, you know the employees and, under certain circumstances, have been a customer for generations.

That was the pound with which VR Bank has been able to grow in our home country. While the "global players" liked to speculate about their heads and collars, the "farmer's bank" stood for regional proximity and uncomplicated competence. In Obersöchering, for example, for more than 100 years.

Now, however, VR Bank Werdenfels is closing three branches in the district. Almost overnight, with the currently misused reason “corona crisis”. The outcry from the mayors and long-standing customers is obviously approvingly calculated by board member Walter Beller. 

The business environment has certainly become more difficult due to historically low interest rates and the growing competition from direct banks on the Internet. But because of this, simply giving up VR Bank's unique selling proposition - the proximity and the trust that customers have built up over decades - could improve the balance sheet in the short term, but in the long term it could be very harmful for the financial institution. Because in the future it will be much more difficult to explain to customers why they should pay fees for an account with a bank that they can no longer reach on site if they could have a similar account with a direct bank for free.

Source: merkur

All news articles on 2020-05-23

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