Digitalization and its Rapid Impact on Savings Banks in Germany

Digitalization and its Rapid Impact on Savings Banks in Germany

Carsten Giebe

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Digitalization and its Rapid Impact on Savings Banks in Germany

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Abstract

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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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite 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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GJMBR Volume 21 Issue B4

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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

Submission ReceivedFebruary 11, 2021
Peer Review Double Blind
Handling Editor
Accepted March 3, 2021
Published March 15, 2021

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August 3, 2021

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