Digitalization and its Rapid Impact on Savings Banks in Germany

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Carsten Giebe
Carsten Giebe
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Kevin Schulz
Kevin Schulz

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GJMBR Volume 21 Issue B4

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The German banking industry is facing major challenges due to digitalization. The digital transformation is significantly influenced by technological progress, tighter regulation and low-interest phases. The market entry of fintechs and changing customer behaviour is also a reality. To meet the challenge of the digitalization and to to reduce costs, savings banks are increasingly turning to mergers, staff cuts and branch closures. The purpose of this research is to investigate the impact of digitalization on German savings banks. Through an explorative literature review, scientific sources and real KPIs of savings banks in Germany were used. The impact of digitalization on savings banks in the period 1999 -2018 was investigated using the study situation and the analysis of key business figures. The aim is to answer whether the costcutting actions of savings banks are justified from an economic point of view based on the KPIs operating result, cost-income ratio and return on equity. In recent years, it has become clear that German banks lack a clear strategy. The results may be of interest to researchers dealing with the digital transformation of savings banks in Germany.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Carsten Giebe. 2021. \u201cDigitalization and its Rapid Impact on Savings Banks in Germany\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 21 (GJMBR Volume 21 Issue B4): .

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Efficient banking research on digital transformation and savings banks in Germany.
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: D41, G21, M21
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v1.2

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August 3, 2021

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English

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The German banking industry is facing major challenges due to digitalization. The digital transformation is significantly influenced by technological progress, tighter regulation and low-interest phases. The market entry of fintechs and changing customer behaviour is also a reality. To meet the challenge of the digitalization and to to reduce costs, savings banks are increasingly turning to mergers, staff cuts and branch closures. The purpose of this research is to investigate the impact of digitalization on German savings banks. Through an explorative literature review, scientific sources and real KPIs of savings banks in Germany were used. The impact of digitalization on savings banks in the period 1999 -2018 was investigated using the study situation and the analysis of key business figures. The aim is to answer whether the costcutting actions of savings banks are justified from an economic point of view based on the KPIs operating result, cost-income ratio and return on equity. In recent years, it has become clear that German banks lack a clear strategy. The results may be of interest to researchers dealing with the digital transformation of savings banks in Germany.

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Digitalization and its Rapid Impact on Savings Banks in Germany

Carsten Giebe
Carsten Giebe
Kevin Schulz
Kevin Schulz

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