Pigprox/
Shutterstock.com
Regional focus
Balancing profit and prudence
The German banking sector has long been seen as relatively staid. Cooperative and saving banks prevail, which hasn’t exactly made them profi table – even if they do keep consumers safe. But how is the rise of neobanks affecting the overall picture? And as economic challenges continue to bite, how is their resilience being tested? Abi Millar discusses these questions with Katharina Lueth, chief client offi cer and managing director at Raisin, and a spokesperson from N26.
ver the years, Germany’s banks have gained a reputation for stability. As Europe’s second- largest banking sector by assets, it has many points working in its favour: banks are well-capitalised, non-performing loans are rare, and bank collapses are almost unheard of. During the Covid-19 pandemic, meanwhile, the country’s banks played a key role in re-energising the economy, and have held firm since the start of the Ukraine war and associated energy crisis. This year, the ratings agency S&P Global said that while German economic risk had increased, its ratings for the nation’s banks remained unchanged. As S&P put it: ‘We expect German banks to show resilience amid geopolitical risks, elevated inflation, rising interest rates and an expected GDP contraction in Germany of about 0.5% in 2023.’ That’s a resounding tribute at a time when so many lenders globally have seen their ratings tumble. It would be easy, then, to tell a story about ‘safety first’
O
– a nation of risk-averse customers placing their faith in a dull but dependable sector. As Reuters reported in March, German households have been responding to economic turmoil by depositing their savings domestically. Clearly, Teutonic banks are seen as a safer bet than their foreign counterparts – even if the interest rates aren’t quite as juicy. “Germany tends to be a market of savers,” emphasises Katharina Lueth, chief client officer and managing director at Raisin, a Berlin fintech that helps
16 16
Future Banking /
www.nsbanking.com
Future Banking /
www.nsbanking.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53
