Traditional Banks In Decline: The Case of Germany
Lagging behind when it comes to retail customer expectations
As far as the retail customer is concerned, traditional banks have for some time now been viewed as parasite-like. Charging fees on almost any service they provide, amending their terms and conditions in ways that disadvantage their customers, and applying currency exchange rates that are too costly. This is also the case in Germany, where over the last several years, many have opted to switch to neobanks or digital banks, which offer more innovative and less expensive financial products. Ever since the ECB started raising policy rates, the competition has become more intense, as alternative institutions have adapted their offerings more swiftly, while establishment banks have lagged in passing on higher yields to clients.
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