Digital Banking and Germany

Digital banking is a banking service where customers can do their banking online without going to traditional bank branches. This service has quickly become popular in recent years because it has many advantages.

First, digital banking services allow customers to perform banking transactions faster and easier. Customers can save time and effort by banking through mobile applications or websites. Second, digital banking services allow customers to track their financial transactions and monitor their account activity. Customers can instantly view their account balances and recent transactions.

Third, digital banking services often cost less than traditional banks. Because digital banks have lower operating costs, which allows them to offer more affordable services to customers. In terms of technical data, digital banking services use innovative technologies such as big data analytics, artificial intelligence and cloud computing technologies. These technologies are used to make customers' financial transactions more secure and to ensure the security of customer data.

In addition, digital banking services include mobile devices, smart cards and NFC ( Near field It can be integrated with technological devices such as Communication ) technology . This makes banking transactions easier and faster for customers.

Banks that have obtained a digital banking license in Germany include:

1. SolarisBank: Berlin-based SolarisBank started its activities in 2016. The bank provides API access to financial services and serves other fintech companies.
2. O2 Banking: O2 Banking, a subsidiary of the German telecommunication company Telefónica, started its operations in 2017. The bank provides digital banking services to its customers in Germany.
3. Penta: Founded in 2016 , Penta is a bank that provides digital banking services for small and medium-sized businesses. Currently serving in Germany.
4. Kontist : Kontist is another bank that offers digital banking services and operates in Germany. The company provides financial services specifically for self-employed and small businesses.

Besides these banks, many traditional banks also offer digital banking services.

Some digital banks operating in Germany are:

1. N26: Founded in 2013, N26 is one of the largest digital banks in Germany. Providing mobile banking services to its customers, N26 serves more than 7 million users in Europe.
2. Deutsche Bank Mobile: Deutsche Bank launched Deutsche Bank Mobile , a digital bank offering mobile banking services, in 2016 . Through this application, customers can access their bank accounts and credit cards, make money transfers and perform other banking transactions.
3. Comdirect: Founded in 1994, Comdirect is one of Germany's oldest digital banks. Comdirect , which provides online banking and investment services to its customers, operates with more than 2.5 million customers.
4. Fidor Bank: Fidor Bank is a digital bank established in 2009. Offering its customers online banking, payment systems and other financial services, Fidor Bank operates in Germany, the UK, France and South Africa.
5. ING- DiBa: Although ING- DiBa is a bank established in 1965, it has also invested in digital banking services in recent years. Providing mobile banking, online account opening and other financial services to its customers, ING- DiBa serves more than 9 million customers.

Commerzbank and Deutsche Bank , which are now among Germany's largest banks, also operate in the digital banking space. However, the market share of digital banks in Germany is still small. For example, the total number of customers of large digital banks such as N26 is far below the number of customers of all banks operating in Germany. According to a report published by Deutsche Bank in 2020, the market share of digital banks in Germany is 6.5%.

With the rapid growth of the digital banking sector in Germany, traditional banks are also investing in digital banking services. In 2020, digital banking services of traditional banks operating in Germany such as Commerzbank and Deutsche Bank accounted for more than 20% of their total revenues. The number of companies offering digital banking services in Germany has been increasing rapidly in recent years.

Fintech stands for financial technology and there are also many Fintech companies in Germany. Fintech companies often offer many different financial products and services. As of 2020, it is estimated that there are more than 1,500 Fintech companies in Germany. Examples of Fintech companies operating in Germany are companies such as N26, Fidor Bank, SolarisBank and Auxmoney.

Many Fintech companies also offer digital banking services. For example, Solarisbank is a Fintech company that provides infrastructure services to financial institutions, and it also offers digital banking services. Other Fintech companies offering digital banking services in Germany include N26, Fidor Bank, Monzo and Revolut.

Deutsche Bank has a wide range of services in digital banking. The Financial Planner application, which stores and automatically analyzes the financial data of customers, provides customers with simple graphs about their income and expenses. E- safe application, on the other hand, is a digital application where customers can safely store account statements, documents related to securities, bank or non-bank contracts, identity information, passwords and personal documents. With this application, Deutsche Bank aims to reduce paper usage by encouraging the digital storage of documents. According to statistics published on the bank's website, Germany's annual paper consumption is equivalent to the distance between the earth and the moon and 1,000 trees. The InfoServices application, on the other hand, offers a personalized notification service to notify customers. This free service allows customers to receive notifications about expected payments. The SmartÜberweisung application, on the other hand, allows customers to easily transfer invoices or receipts sent in pdf format to the system.

The demand for digital banking services in Germany is increasing every year. According to a study conducted in Germany, the demand for digital banking services has increased rapidly in the last few years and the number of users of digital banking services in Germany exceeded 15 million in 2020.

The customers of companies that offer digital banking services in Germany are mostly young people and the majority of these customers are accustomed to using digital technologies. One reason for the increasing demand for digital banking services in Germany is that they offer more affordable and flexible services than traditional banks can offer.

Most of the companies that offer digital banking services in Germany offer services to their customers via mobile applications. These apps allow customers to easily access their accounts, make money transfers and perform other financial transactions.

Many of the companies that offer digital banking services in Germany offer their customers quick and easy account opening. Account opening transactions can be made through the mobile application or the website. Also, many digital banks offer free credit cards to their customers. Many of the companies that offer digital banking services in Germany offer high interest rates to their customers. These services offer higher interest rates than traditional banks, allowing their customers to save money.

As a result, the digital banking sector in Germany is growing rapidly and many Fintech companies also offer digital banking services. The demand for digital banking services is increasing every year, offering more affordable and flexible services than traditional banks. Therefore, the digital banking sector in Germany will grow further in the future.