Dhe rota sofa in the corner is a statement. The new world of banks must be more colorful and flashy than the old one. At least this is the impression given by the new branch of Frankfurter Volksbank at its headquarters on Frankfurter Börsenstrasse. Next to the red couch, a wall shines with real moss, and where there used to be counters, there is now a large table at which future customer talks will be held. And the switches that have shaped branches for years? “We disposed of it,” says Eva Wunsch-Weber, the chairwoman of the board. Frankfurter Volksbank is not the first bank to come up with the idea that branches may have to look different in the age of digitization than they used to be. Customers no longer come to withdraw money or to get statements, and they stop by far less than they used to.
But when they enter a branch, they often have bigger plans and want good advice: when renovating a house, buying a car or investing. Frankfurter Volksbank wants to live up to this claim and is initially investing six million euros in the renovation of 16 locations; all others are to follow from 2023.
Banks as if they were out of time
But this renovation, the red couch and the green moss, are only the visible signs of a change that banks can no longer avoid. Anyone who has ever been to an Apple store, says Eva Wunsch-Weber, will experience new customer and consumer experiences there, while the banks, on the other hand, seem “out of date”.
For the Volksbank, as the wave of modernization is supposed to convey, branches are still important, even if they are visited less and less. In view of the significant decline in bank branches in Germany over the past few years, this is a very important statement. The company still sees its on-site presence as a decisive competitive advantage over the neo-banks, as Wunsch-Weber calls them, i.e. over financial institutions that can only be reached digitally.
In order to take advantage of this, “we have to rethink the world of branches”, but the bank branches remain important, Wunsch-Weber is certain, “despite all prophecies of doom from online competition”. This can also be seen in the number of managed accounts: The Volksbanks in Germany have 30 million to offer, explains Wunsch-Weber, compared to just two million neo-banks, “I don’t think I have to say more about that”.
After all, the way of speaking of the digital banks has also been partly adopted by the Volksbank. The branch in Frankfurt is not a “flagstore”, but just a showcase for the renovation of other locations, which should all get a new “look and feel”, i.e. bar tables, LED walls, modern lamps and carpets. The bank is also adopting the platform economy trend and promising to transcend the boundaries of its own ecosystem.
To this end, the company intends to act as a vertical platform itself in the future and accompany customers in discussions, but also on the homepage, when important decisions are made. For example, when it comes to purchasing an e-charging station or renovating old buildings: Consumers can not only find answers to important questions on the company’s new website, but can even place orders directly through Volksbank partner companies. “One-stop-shopping” in a bank.
Build up knowledge and expertise
However, Volksbank does not want to earn money with it at the moment, as Wunsch-Weber emphasizes, although many fintechs have long been generating commission income by brokering electricity and gas tariffs, for example. Frankfurter Volksbank is not out for that. “We only use our network to build up knowledge and know-how together with customers,” says Wunsch-Weber.
Frankfurter Volksbank wants to position itself less as a sales center than more as an information center for its customers, which is why the new branches will also have “Money Talks” in the future, ie discussion formats on financial topics. And who knows what else the huge LED wall might one day be used for besides presentations? Let’s see, replies Eva Wunsch-Weber, “maybe we’ll watch a soccer game with customers soon”.
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