Deutsche Bank is reducing its retail branch presence in Germany from 700 to 500 as it looks to lower costs and adapt to digital banking. According to the bank’s private, wealth and commercial clients head and member of management board Christian Sewing, the cuts are necessary as the retail bank’s profitability has decreased over the last five years. He said the bank presently spends €0.80 for each euro in revenue it generates, €0.10 more than it was spending in 2011 and short of its 2018 target of €0.65. At the time, investment is necessary to help the retail bank cope with fintechs, regulation and low interest rates, he said. The bank, is investing in sales staff and €1 billion ($1.13 billion) in digitalisation, of which 750 million will go to the retail bank, and plans to roll out 72 new digital products this year, he said.
