Bank plans revolution for millions of customers: out of cash and branches

Created: 10/17/2022, 12:07 p.m

By: Lena Zschirpe

Once again, consumers have to adapt to changes at a bank.

This time it's mostly cash.

Dortmund – Is a revolution imminent in banks?

At least in the Volksbanken and Raiffeisenbanken, major changes are imminent.

All branches in the first area are to be closed on December 1st.

Cash transactions will also be discontinued.

This could have nationwide consequences, as RUHR24 reports.

Volksbank: Raiffeisenbank will no longer issue cash from December 2022

"Deposits and withdrawals in the branch (counter and ATM) will no longer be possible in the future," it says in a letter that customers have received from Raiffeisenbank Hochtaunus.

The financial institution belonging to the Volksbank is basically completely ceasing the cash business for customers.

This development probably does not come as a surprise to everyone, as cash payments have been steadily declining for years.

This is logically also evident at the ATMs, as the Raiffeisenbank discloses.

"Recently we only had two visitors per hour," explains Achim Brunner, the bank's CEO, to the financial

.

The number of cash withdrawals was less than ten per day in all Raiffeisenbank branches.

“We have written to all customers.

There were only isolated reactions,” Brunner continued.

Raiffeisenbank Hochtaunus stops cash transactions and closes branches – is Volksbank following suit?

The Raiffeisenbank Hochtaunus, which belongs to the Volksbank, is now apparently drawing its conclusions from this.

It says goodbye to the classic business model: all branches are to be closed on December 1st, only the head office is to remain.

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Although this turnaround has so far taken place regionally, it could still have an impact on other areas of the Volksbank.

Or cause major discrepancies, as the online magazine

suspects.

The bank actually works according to the regional principle and should also make financial transactions possible for people in its business area.

The Volksbank could soon push through some changes.

© Michael Gstettenbauer/Imago

Volksbank wants to become more digital – will more branches close soon?

But now the demand is falling.

Capacities and resources should therefore be redistributed in order to ultimately offer customers added value again.

Because customer behavior in particular has changed significantly in recent years, says Brunner.

Although consumers do not want to pay account management costs, advice is still desired.

And this does not necessarily have to happen in a branch.

The Volksbank and Raiffeisenbank therefore want to realign themselves in the digital sector.

An "OnlineOnly" account is already being offered nationwide and advice is already being given by telephone or in advice centres.

But what about the general supply of cash to customers?

The closed locations should not necessarily lead to losses here, estimates Brunner.

Many supermarkets now allow you to withdraw cash free of charge.

Rewe even offers an ATM for cryptocurrencies.