Is the cash gone? In view of the current developments on the market, this question is entirely justified. A first bank has now even completely stopped issuing cash in Germany.
More and more people are doing without cash and are instead paying with a card or with their smartphone via Apple Pay or Google Pay. As a result, many German financial institutions are seeing a decline in cash issuance – both at ATMs and at counters. A first bank has taken action and will soon no longer offer cash deposits and withdrawals. Could other banks follow suit?
Raiffeisenbank Hochtaunus will no longer accept cash from December
Customers of Raiffeisenbank Hochtaunus are currently being informed that, with the exception of the headquarters in Bad Homburg, the bank will be closing the four remaining branches in the region in December. The closure also eliminates the supply of cash. More precisely, the letter states that “deposits and withdrawals in the branch (counter and ATM) will no longer be possible in the future.” This also applies to the head office, where only advice will then be offered.
The so-called “Full Service Account” for 30 euros per month will also be scrapped in this context. Unlike the online-only account, this type of account has so far focused on on-site advice and service. However, since Raiffeisenbank Hochtaunus is now closing its branches, the services can no longer be offered. However, customers of the bank can convert their account into a free, purely online account.
How do bank customers get cash now?
If customers of the bank cannot or do not want to do without cash, they have to resort to other options for their withdrawals. For example, you can get money with the free Mastercard DirectCard, which is part of the account, via the machines of other banks. You can use it to withdraw money up to 52 times a year free of charge from other banks worldwide. Raiffeisenbank Hochtaunus customers can also get money at the checkout in various supermarkets and drugstores. Withdrawal is even possible with the Girocard. The maximum amount per payment is 200 euros for Rewe, Penny and Dm.
Many banks are increasingly focusing on online business. For some customers this will be a turning point. Older people in particular still rely on direct contact with their bank and regularly pick up cash there. Achim Brunner, CEO of Raiffeisenbank im Hochtaunus, sees no cuts for most customers as a result of the closures. “Most of them will not even notice because they are not affected by the changes,” said Brunner in an interview Biallo. “Recently we only had two visitors per hour. And the number of cash withdrawals was less than ten per day across all branches. We have written to all customers. There were only isolated reactions.”
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Are other banks also restricting the issuing of cash?
Raiffeisenbank Hochtaunus’ decision to close branches and stop issuing cash seems radical. In view of the current developments on the financial market, however, it is entirely understandable. Brunner also emphasizes that the development has been indicated for a long time. “We are taking a step that many others, especially smaller gene banks, are also about to take.”
But other large financial institutions have also closed branches in recent months, thereby restricting local service. Deutsche Bank, for example, announced that it intends to close 200 branches of its associated Postbank branches by the end of 2023. Instead of 750, there will then only be 550 locations across Germany. Commerzbank is also restricting operations and has announced that 50 branches in Germany will be closed again. There are then 400 branches left.