Reduction of Branches and ATMs by Schleswig-Holstein Sparkassen: A Shift Towards Digital Transformation
North's Sparkasse Reduces Branch and ATM Networks - Northern savings banks trim down branch and ATM networks
The Sparkassen landscape in Schleswig-Holstein underwent a significant transformation last year, with a decrease of 11 branches from 348 to 337. Out of these, 196 branches remained staffed, according to the Sparkassen and Giroverband for Schleswig-Holstein. The number of ATMs also saw a decline, dropping from 703 in 2023 to 679 in the recent year. This downsizing is largely attributed to changes in customer behavior and digital advancements.
The Sparkassen network in Schleswig-Holstein maintained a steady business performance in 2023, with a growing credit business. Customer loans remained steady at approximately 38.4 billion euros, comparable to the previous year. However, loan commitments significantly increased by nearly 17%, reaching over 4.4 billion euros. This increase includes nearly 1.3 billion euros in private residential construction loans and around 1.1 billion euros in commercial residential construction loans. The growth in these sectors was almost 30% and 24% respectively.
Oliver Stolz, the President of Sparkassen and Giroverband Schleswig-Holstein, outlined a persistently challenging economic scenario in Germany. Despite this, he highlighted promising signals and signs of recovery.
He pointed towards decisions on special funds for infrastructure and defense, alongside the prospects of the coalition agreement between the Union and SPD, as potential catalysts for economic growth. Stolz emphasized the significance of these funds if accompanied by meaningful reform initiatives, including deregulation and initiatives that make investments more predictable and favorable.
Stolz also commended growing customer interest in value-based savings. The securities business turnover witnessed a substantial increase of nearly 30%, reaching 5.99 billion euros last year. Stolz attributed this mostly to the financial advice offered by Sparkassen during periods of zero and low interest rates. The Sparkasse workforce expanded by 80, comprising 6,268 employees.
- Sparkasse
- Schleswig-Holstein
- ATM
Insights:
- The Sparkassen-Finanzgruppe in Schleswig-Holstein has recently undergone consolidation, with a notable merger between Bausparkasse Schleswig-Holstein-Hamburg AG and LBS Ost resulting in LBS NordOst.
- This industry-wide consolidation, along with changing customer habits favoring digital banking services, and the drive for economic and operational efficiency, are likely contributors to the branch and ATM reductions in Schleswig-Holstein.
The consolidation in the Sparkassen-Finanzgruppe of Schleswig-Holstein, such as the merger between Bausparkasse Schleswig-Holstein-Hamburg AG and LBS Ost resulting in LBS NordOst, may be a factor contributing to the reduction of branches and ATMs. In light of changes in customer habits favoring digital banking services and the drive for economic and operational efficiency in the banking-and-insurance industry, these reductions could be a step towards vocational training and upskilling the workforce to adapt to digital transformation in the community aid sector.
