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Deutsche Bank study shows rural areas seeing lower branch traffic

October 2, 2019

A report by Deutsche Bank shows that urban and rural areas show considerable differences in branch activity, which may exacerbate a recent trend of bank closings as more and more bank customers move into digital banking for simple transactions. 

For example, in Mecklenburg-Vorpommern and Brandenburg, which have the lowest population densities in Germany, about 25% of clients visit a bank branch. However, in regions like Nordrhein-Westfalen, Baden-Wurttemburg or Hesse, where population densities are relatively high, about 40% of clients visit a branch.

Throwing a wrinkle into that mix is the fact that clients in Berlin, Hamburg, Munich and Frankfurt visit branches less often. Researchers see a possible link between reduced visitation in big cities to a younger and more tech-savvy population.

In less populated areas, proximity to a bank branch makes a difference. The eastern part of Germany has a lower population density and lower branch density compared with the population, with 30 branches per 100,000 residents in the east compared with 45 branches per 100,000 residents in the west, based on 2013 population figures. 

The report says clients in the eastern part of the country have to travel 13 kilometers to a branch compared with nine in the west. The report shows a related bias in terms of mobile or online banking, with higher use reported in Sachsen, Thuringen as well as Schleswig-Holstein as compared to  Baden-Wurttemburg or Nordrhein-Westfalen.

The report comes weeks after a major restructuring was announced by rival Commerzbank. 

Cover image courtesy of Deutsche Bank.