Known Germany bank Raiffeisen Hochtaunus is closing branches across the country due to the decreasing need of citizens for cash.
The bank said it decided to take the unusual step after noticing an unusually low demand for cash in its branches. Apparently, she had an average last year two clients per hour.
The bank’s decision to close all its branches in Germany, however, will not affect the supply of cash. The bank plans to meet its customers through cooperation with large retail chains 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 conducted by McKinsey & Company shows that supplying branches with cash costs banks approx two billion euros per year – including costs for 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 because 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 forceand those changes, which are the result of a serious lack of skilled workers in Germany, bring benefits for the citizens of the Western Balkans.