The well-known German bank Raiffeisen Hochtaunus is closing branches across the country due to the dwindling need of citizens for cash.
The bank said it decided to take the unusual step after noticing unusually low demand for cash in its branches. She reportedly had an average of two clients per hour last year.
The bank’s decision to close all its branches in Germany, however, will not affect the supply of cash. Through cooperation with large retail chains, the bank plans to meet its clients who will still be able to withdraw cash, but no longer in a typical banking environment.
The drastic move raises an even bigger question – could this be the beginning of the end of the cash era? Experts say that other banks could follow suit.
Closing all branches brings a huge financial relief. A study by McKinsey & Company shows that supplying branches with cash costs banks around two billion euros a year – including the costs of around 55,000 ATMs across the country.
The change also reflects changing consumer habits. Smartphones and other digital payment methods are becoming increasingly popular. Demand for cash is declining, especially among younger customers.
Raiffeisen Hochtaunus Bank could play an important role as it encourages other banks to close traditional branches in favor of digital and more functional solutions.
The bank was founded in 1870.
The seat is located in Bad Homburg.
The first phase of the new labor immigration law, let’s recall, came into force, and these changes, which are the result of a serious lack of skilled workers in Germany, bring benefits for the citizens of the Western Balkans.