Germany’s Deutsche Bank continues to restructure its retail banking business by accelerating digitization and reducing its branch network within Germany, a move aimed at improving efficiency and enhancing digital services.
The bank intends to close around 100 additional locations by the end of 2026, as part of ongoing reduction programs, following similar measures implemented in recent years.
These steps are leading the bank to an “appropriate number” of branches.
According to group data, the number of Deutsche Bank and Postbank branches in Germany was around 750 at the end of last year.
Despite the reduction plans, it was emphasized that branches remain essential, with a confirmed need to develop working methods within them.
AI-Powered Digital Agent
It was explained that branch employees currently spend a long time on administrative tasks, while more effort should be directed towards advisory services. The challenge lies in moving administrative work to digital channels to free up more time for customer service.
As part of attracting customers to digital offerings, the bank is developing an AI-powered digital agent, expected to launch in the second half of the year. It will act as a personal assistant, explaining how to use the banking app and answering questions step-by-step.
App usage rates have increased by around 20% over the past 18 months, with the bank aiming to increase the number of active users. Deutsche Bank and Postbank together have around 19 million retail customers in Germany.
Despite the focus on digitization, it was confirmed that branches will remain fundamental for complex matters like home purchases or investments, where customers prefer direct interaction.
Conversely, it was acknowledged that the digital transformation will lead to a reduction in jobs, relying primarily on natural workforce turnover without replacing those who leave or retire.
