German SMEs Visit Bank Branches Less Frequently
Visits by German small and medium-sized enterprises (SMEs) to bank branches continue to decline. In 2024, only 47 percent of businesses visited a bank, a record low.
Berlin – The proportion of German small and medium-sized enterprises (SMEs) visiting bank and savings bank branches reached an all-time low in 2024. Only 47 percent of these companies made at least one business appointment at a physical branch, according to a study by KfW Research released today.
This figure represents a significant decrease compared to previous years. In 2021, the proportion was still 50 percent, and in 2017, it stood at 65 percent. While the decline persists, its pace has slowed compared to earlier survey periods.
In absolute terms, this means that 1.8 million SMEs visited a bank or savings bank branch in 2024. This is 620,000 fewer than in 2017. For the companies that still visit branches, the average number of visits was 3.15 times per year. Cumulatively, this resulted in approximately 5.7 million business appointments between SMEs and credit institutions in 2024.
Dr. Dirk Schumacher, Chief Economist at KfW, attributes this trend to several factors. The willingness of SMEs to invest has stagnated for years, and when investments are made, bank financing is used less frequently, reducing the need for interaction with credit institutions. Furthermore, banks are increasingly digitalizing their services, and companies are requesting digital offerings more often, diminishing the necessity for branch visits. The number of bank branches in Germany has also decreased substantially since the turn of the millennium, contributing to longer travel times for businesses to reach their nearest branch.