The German banking system is traditionally characterized by our retail banks, or branch banks. banks, which are characterized by personal customer contact. At some point the Internet came along. And since the Internet did not go away and the majority of banking transactions in the private customer sector were done from home on the computer (today Smartphone) could be settled, the first direct banks were established.

Raider is now called Twix and the direct banks of yesteryear are the Neobanks from today. Because direct banks or new banks dispense with branches and personal customer contact, and the distribution channels are completely digital, these banks have a more favorable cost structure that they can – but do not always – pass on to customers. The fact that direct banks are much more digital means that they are more “convenient” for customers.

We took a look at the growth of the last few years in comparison to the traditional players. Et voilá…