Germany Retail Banking Review, Forecasts, and Future Opportunities

1.1 Market overview
1.2 Key findings
1.3 Critical success factors

3.1 Market balances

4.1 GDP and unemployment

5.1 Benchmarking the main players
5.2 German banks saw increased CIRs in 2020

6.1 There is a higher preference for alternative providers in 2021, but the preference for digital banks is low
6.2 Movements in the digital space
6.3 Cross-selling

7.1 N26
7.2 Klarna

8.1 Methodology
8.2 Secondary sources
8.3 Further reading

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Figure 1: Residential mortgage and retail deposit balances have increased over one year (2019-20)
Figure 2: Credit cards in Germany are set to record a higher CAGR than comparable countries
Figure 3: The CAGR for personal loans in Germany is forecasted to be much weaker than its comparable countries
Figure 4: The product CAGR growth for 2020-25 in Germany is mid-ranged vs. other Western countries
Figure 5: Annual GDP to show recovery in 2021 and 2022 before reaching similar levels to 2018 (pre-pandemic)
Figure 6: Wage growth and inflation have been directly proportional for the past few years
Figure 7: Retail deposits quarterly market shares showed minimal movement from 2019 to 2020
Figure 8: Residential mortgages quarterly market shares are set for small movement in 2021
Figure 9: Credit card quarterly market shares will see marginal change in FY2021
Figure 10: Personal loans quarterly market share has declined at Sparkassen
Figure 11: Three of the main players in Germany have CIRs above the 2020 average of 76%
Figure 12: Preference for traditional providers has declined in 2021 by 4pp
Figure 13: German consumers have shown the least change in attitude towards traditional banks than other markets
Figure 14: Younger respondents prefer alternative providers for their main savings/transaction account
Figure 15: Better rates and rewards is the top reason for preferring an alternative provider compared to traditional providers
Figure 16: Satisfaction levels vs. importance shows that consumers are generally satisfied with what they find most important from their primary current account provider
Figure 17: Younger customers use the branch more frequently than older respondents
Figure 18: Those with a lower tenure visit the branch more frequently
Figure 19: Both frequent and non-frequent branch users place similar importance on areas for digital banking improvement
Figure 20: In comparison to other European markets, German respondents (aged 18-44) have a high preference for using a branch to open an account
Figure 21: Germany has the joint-highest branch preference for conducting frequent banking tasks among younger respondents
Figure 22: The branch as a preference for research methods for financial products and services is higher in Germany in comparison to other markets
Figure 23: More younger respondents in Germany have been with their main banking provider for less than five years in comparison to the older cohorts
Figure 24: German banks are struggling to cross-sell more than two products
Figure 25: There are lower levels of satisfaction among those who have been cross-sold less
Figure 26: Only 7% of German respondents have a credit card with their primary provider
Figure 27: Out of the 16% of respondents who hold a mortgage, only 10% are likely to go with their primary provider*
Figure 28: Experience, brand, and branches are among the top reasons for choosing a mortgage provider