Deutsche Bank completed the IT migration of financial institution Postbank to its network during the third quarter and has decided to shutter nearly half of Postbank’s branches as clients lean into digital banking. 

The $578 billion, bank acquired Bonn, Germany-based Postbank in 2009 and aims to close nearly 250 of its 550 branches in the next three years as mobile and online service adoption grows, a Postbank spokesperson told Bank Automation News.

Under Frankfurt, Germany-based Deutsche Bank, Postbank is working to become a mobile-first bank, offering customers products and services via cellphone and tablet, the spokesperson said. 

“As digitalization progresses, we have been observing a clear change in customer behavior for some time now,” the spokesperson said. “As a result of these changes, there is less demand from customers for over-the-counter services in branches.” 

New role for branches

Postbank clients will have access to Deutsche Bank’s regional advisory centers, including direct access to financial advice, the spokesperson told BAN.  

“Over-the-counter sales channels will continue to play an important role for personal advice, but not to the same extent they once did,” the spokesperson said. At multiple Postbank locations, “customers will be able to obtain personal on-site advice in a new branch [model].” 

The future of branches

Deutsche Bank’s industry peers, including NatWest and Lloyds Bank, are also moving to reduce their footprints as digital banking adoption rises. 

Read more: Combining physical and digital, a new era of bank branches 

Deutsche Bank is reducing the physical footprint of its own branches as well, according to the bank’s earnings supplement. 

“We are also optimizing our distribution network and have reduced branches by more than 90 [to 1,443 branches] over the first nine months of 2023,” Deutsche Bank Chief Executive Christian Sewing said during the bank’s earnings call on Oct. 25.