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Banking & Finance News

European Banks Closes After 20 Years

Due to the rise of internet banking, European citizens are more likely to make use of the internet and online banking, rather than heading to their respective banks- out of convenience, which caused a commotion towards physical banks.

Online banking gave the mass the opportunity to have a better and convenient-wise kind of banking, but it seems like it has not totally given everyone, “the ease of life.” Ever since the latter has become known to most of the people, the number of citizens who visits the physical bank decreased, in which has caused a huge impact among the people- employees at the least, within the banking industry, as bank employment steadily drops.

Within last year up to now about 2.7 million jobs in the banking industry has been cut off.

According to a report,  more than 18,000 branches have closed in Spain since 2007. While in Germany, 8,769 branches were recorded to have been affected and Italy closed almost 5,800 branches.

Because of the complex three-tier system of banks in Germany led by the Deutsche Bank, private banks, public savings banks, and credit unions are all falling apart slowly because of digitization.

Losing in branch density will limit accessibility to people who do not have an affinity towards the use of the conveniences the internet provides, which in turn would increase the use of online banking.

Unfortunately, that would be counterproductive as fewer people rely on the said banks.

People cannot deny how convenient it is to shop online or pay bills without having to set foot to the bank and take what cash they have left.

In addition to online banking, mobile apps that let users create virtual prepaid cards completely eliminate the need to use any other ways to complete a transaction, and creating online debit card is as simple as tapping one’s phone.