A massive realignment is taking place at Commerzbank.
The division manager of the southern division explains what this is all about and how the institute would like to be set up in the future.
Munich / Frankfurt - Commerzbank, which has long stuck to its relatively close-knit branch network, is radically changing its direction under its new CEO Manfred Knof: The bank plans to close 350 branches nationwide by the end of 2022 - 15 branches in southern Upper Bavaria are affected by the deforestation.
We spoke to Mario Peric, Head of the South Division at Commerzbank, about the institute's plans and the pressure from the regional banks.
Mr. Peric, how many customers do you have in the region?
Mario Peric:
In Munich and the surrounding districts, we have around 350,000 private customers who we serve in - currently still - 36 branches.
15 of these branches are now to be closed.
Why?
Peric:
We are still staying with a strong network of 21 local branches and we also want to greatly expand our digital advice.
During the pandemic, we saw that our customers want to do many things from the comfort of their own home.
Here are a few examples: our banking app is the most popular channel with 1.8 million users per month.
Every fourth security order is placed using a smartphone.
83 percent of all securities savings plans are now concluded online.
These are clear signs from our customers that we don't want to ignore.
Commerzbank has "not made it" in many regions - this is how the downsizing is planned
What were the criteria for the branch closings?
Peric:
The locations were selected according to clear and comprehensible criteria.
This is primarily customer demand, but also future population trends.
But we also have to be honest and admit, for some locations, that we didn't manage to overtake the regional banks - even though we've tried for 50 or 70 years.
At the same time, we are strengthening the branches in which our offers are well received.
In Munich, for example, this is our traditional house on Promenadenplatz.
Will the branch go hand in hand with downsizing, and if so, to what extent?
Peric:
I don't want to gloss over that.
We will part with a third of our employees in Germany.
But we want to do this without redundancies and therefore offer fair conditions.
An offer for a volunteer program will start on July 19.
Employees also have the option of moving to another branch or to one of our future advice centers.
Where will these digital centers be located and who will work in them?
Peric:
It is important that there are no call centers.
It is about the personal support of our customers.
As a first step, our customers can reach a professional advisor by phone and later also by video, chat and email.
We want to recruit these advisors primarily from the employees of the closed branches, because these are excellently trained bankers.
We combine this consulting know-how with the experience and digital competence of the Comdirect.
The first pilot locations will be in Berlin, Düsseldorf and Quickborn near Hamburg, where Comdirect is based.
All other planned locations will also be in Germany.
Commerzbank will focus even more on digital banking in the future
However, physical contact with their bank is important to many people.
Do you really think that your customers want to do without it?
Peric:
We're not withdrawing completely, there will still be 21 branches here in the Munich region where customers can get personal advice.
And in the medium term we want to be able to offer our customers the same service and benefits with the future advisory centers as in the branch.
Many young people now use their smartphones to conduct their financial transactions.
Is your conversion a handout for this target group?
Peric:
Absolutely.
As a result of the pandemic, many, especially younger people, have started dealing with securities trading.
Fortunately, because of the persistent negative interest rates, people are looking for new investment alternatives.
Traditionally, Germany is more of a country of savers than of shareholders.
Some customers want detailed advice, others want to act as independently as possible from home.
We want to offer both.
We want to become the digital advisory bank for Germany.
More and more banks collect penalty interest from their customers and refer to the ECB.
Consumer advocates consider the justification flimsy.
Matthias Schneider conducted the interview