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

Once again, consumers will have to adapt to changes in the bank. This time it’s mostly cash.

Dortmund – is a revolution imminent in the banks? At least in Volksbanken and Rieffenbanken, big changes are imminent. All branches in the first zone are to be closed on December 1. Cash transactions will also stop. This could have nationwide consequences.

Volksbank: Raiffeisenbank will no longer issue cash from December 2022

“Deposit and withdrawal at the branch (counter and ATM) will no longer be possible in the future,” it says in a letter that customers have received from Riefenbank Hochthausen. The financial institution belonging to Volksbank is basically completely shutting down the cash business for customers.

This development may not come as a surprise to everyone, as cash payments have been declining steadily over the years. This is also logically evident in ATMs, as Raiffeisenbank reveals. “Last time we had only two visitors per hour,” the bank’s CEO Achim Brunner told Financial Magazine. bialo,

The number of cash withdrawals at all Raiffeisenbank branches was less than ten per day. “We have written to all customers. There were only different reactions,” Brunner continued.

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

The Raiffeisenbank Hochtownus, belonging to Volksbank, is now apparently drawing conclusions from this. It says goodbye to the classic business model: all branches are to be closed on December 1, only the head office remains.

Although this change has so far taken place regionally, it could have an impact on other areas of Volksbank. or create strong discrepancies like an online magazine North Bavaria supposed. The bank actually works according to the sectoral principle and should also make financial transactions possible for the people of its business sector.

Volksbank wants to become more digital – will there be more branch closures soon?

But now the demand is falling. Therefore capabilities and resources must be redistributed so as to ultimately provide value added value again to the customers. Especially because customer behavior has changed significantly in recent years, says Bruner. Although consumers do not wish to pay account management costs, advice is still required.

And it doesn’t necessarily have to be in the branch itself. So Volksbank and Raiffeisenbank are looking to reorient themselves in the digital sphere. An “online only” account is already being offered nationwide and advice is already being given by telephone or advice centres.

But what about the normal supply of cash to customers? Brunner estimates that closed spaces don’t necessarily cause damage here. Many supermarkets now allow you to withdraw cash for free. Reeway also offers an ATM for cryptocurrencies.

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