Deutsche Bank, a prominent German lender, has announced it will not match the aggressive promotional offers employed by rivals to attract new customers. This stance comes as competition intensifies within Europe’s largest economy, notably with the expansion of US lender JPMorgan. Raja Akram, Deutsche Bank’s chief financial officer, conveyed at a recent financial conference that while competition is not new, the names of the competitors have changed.
JPMorgan recently launched its Chase digital retail bank in Germany, offering new customers a 4% interest rate on deposits for four months. Akram, without directly naming JPMorgan, described these as “very aggressive promotions” that Deutsche Bank would never match. However, Deutsche Bank’s subsidiary brands have responded with their own offers: Postbank is providing a 3.2% promotional rate for new clients on deposits over a six-month period, whilst its smaller Norisbank brand offers a 4% rate alongside a one-time bonus for switching from another bank. Akram emphasised that Deutsche Bank is not actively seeking brand-new clients for deposits, asserting that their existing customer relationships provide a robust foundation.
Germany is recognised as one of Europe’s most competitive banking markets, where various lenders vie for the business of a relatively wealthy and large population. Akram further questioned which types of banks are more vulnerable to deposit losses should a large US institution enter the market. He suggested that a relationship-driven, multi-product bank like Deutsche Bank would be better positioned than a single-product digital offering that primarily competes on rate and risks losing deposits once such promotional rates expire.
