Sparkasse Oberland: branches are being put to the test

Despite Corona times of crisis, business at Sparkasse Oberland is doing well. How it will continue with the branch network is still in the stars. The bank wants to reposition itself in terms of technology and service - unprofitable locations are being put to the test.

Landkreis - Thomas Orbig does not use the bad word "closure". The chairman of the Sparkasse Oberland, who has been on the job for two years, avoids the holy water like the devil. However, the top banker does not deny that his financial institution has to redefine itself. The Board of Directors will deal with the locations this year, he announces to the home newspaper.

Business is going well

Fundamentally, banking business is going well in times of crisis, the head of the board can hear. The trend is "very satisfied" and on track. Deposits grew by 2.5 percent. As of now, the annual balance sheet is three billion euros. For comparison: in 2019, 2.9 billion euros were posted.

Securities turnover rose by 60 percent. The real estate and life insurance lines also show a plus. Online banking "has also gone up," says Orbig. Basically, the institute counts usage rate of over 60 percent among its customers. The Sparkasse has also strengthened its customer center by telephone - there are 50 percent more inquiries and orders. At the same time, however, there is a serious loss: "We have a rapid drop in cash withdrawals." It is unclear whether the balance sheet will continue to be so rosy. The crisis “may have an impact on the Sparkasse in two or three years,” says Orbig - when credit claims are no longer serviced.

Forces pooled

A generally positive development, although the Sparkasse - 29 branches with staff and around 480 employees (360 full-time) - is currently closed. According to spokesman Robert Christian Mayer, 13 branches are now open again. The Sparkasse justified the partial closure of smaller locations with staff shortages, which meant that forces had to be pooled elsewhere.

Orbig speaks of "a huge challenge for us". The Sparkasse was primarily concerned with government aid loans for companies. "Almost all industries were affected." Not all companies had sufficient liquidity. The Sparkasse has so far counted around 720 incoming payments to customer accounts - from 5,000 to 35,000 euros. A total of around 34 million euros in state liquidity aid went to regional companies. Around 200 applications had to be processed, 80 percent were approved. Anyone who received a rejection did not meet the criteria. Or the company "was no longer healthy," said Orbig.

Remodeling of the branches

Independent of Corona, the traditional bank is pushing ahead with its transformation. Orbig raves about a “multichannel savings bank”. They are relying even more on digitization and expanding customer care. "Peu á peu" the branch network will be rebuilt, the CEO announced. The beginning is just being made in Steingaden. The interior there dates from the 1970s. "It looks like an authority." Orbig does not want to commit to the question of the general future of the branches. "It is not yet completely clear how we will realign ourselves." They say that they are in the planning phase. However, it is clear that the Sparkasse must also cushion a decline in local customers.

Cooperation with VR Bank?

Cooperation “with the comrades” is also possible, explains Orbig. Sparkasse and VR Bank Werdenfels operate two locations in Polling and Oberhausen. Perhaps an opportunity for Pähl, where the VR bankers are sailing. Sparkasse boss Orbig also says that "proximity does not mean spatial proximity", but "emotions" when dealing with customers. Branches are put to the economic test. "There may be one or two locations where the last five years have not had a business budget." VR Bank Werdenfels has already announced the end of six branches. If there is a cut at Sparkasse Oberland, it will, according to the CEO, “not be as blatant as that of the comrades”.

Also read:  VR Bank: Mayors are looking for solutions.

Also interesting:  Corona crisis: Sparkasse warns against hoarding cash.