In view of the size of the German economy, banks should play a leading role in an international comparison.
But there can be no question of that: Germany's largest institute, Deutsche Bank, ranks 19th in Europe with a market capitalization of almost 21 billion euros.
Commerzbank does not make it into the top 40 institutions with 6.9 billion euros.
Markus Frühauf
Editor in business.
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The competition in the domestic market with the associations of the savings banks as well as the Volksbank and Raiffeisenbanken is certainly very intense, which leads to fewer opportunities for income in bulk business than with large French banks. But the German banks have more opportunities than expected. This is indicated by a study published on Monday by management consultancy McKinsey with the title "Germany's banks back in the game". The consultants are of the opinion that the institutes could significantly increase their profitability. Profitability is measured by the return on equity and, according to McKinsey consultants, the banks can more than double this to 7 to 8 percent by 2030, which would improve the operating result by 30 to 40 billion euros.
The magic word there is "ambitious renewal course". The consultants understand this to mean faster strategic responses to ever faster changing competitive conditions, customer requirements and technologies. Digitization is crucial for McKinsey. The banks should track customer loyalty using technology, i.e. use the data from their many customer contacts more efficiently. In addition, the consultants see opportunities in new digital business areas or in more productive digital operating models. For the Bundesbank, the dangers are increasing with the increasing digitization of financial transactions. In order to be able to continue to offer their customers important banking services and to remain competitive, the banks would have to help shape the change themselves. "The downside of digitization, however, isthat due to the increasing complexity and increasing division of labor in the banking business, the risk potential is also growing, ”said the July monthly report.
After all, the consultants see the banks as playing a central role in the transition to a sustainable economy. By the year 2030, she believes that 25 to 40 percent of the revenues of German banks would be related to the environment, social affairs and corporate governance (ESG). "The German banks will remain at the heart of the German economy," says Max Flötotto, Senior Partner and responsible for banks in Germany. “With effort and fresh strategies, banks can celebrate a strong comeback. We are optimistic that many industry leaders are aware of the need for change and have ambitious plans to lead their institutes on a new path, ”says Philipp Koch, Senior Partner and co-author of the report.According to McKinsey, two out of three decision-makers consider a radical change in the German banking landscape to be necessary. If the banks did as before, they were threatened with a loss of market share, falling results and a return on equity tending towards zero.