Digital Banking: Unlocking German Consumer Insights

Digital Banking

In an era marked by technological advancements and shifting consumer preferences, the financial landscape in Germany is undergoing a significant transformation. The rise of digital banking is reshaping the way people manage their finances, and January’s insights from DCMN‘s Brand Tracker shed light on the intriguing dynamics of this evolution.

As we delve into the findings, we uncover a division between traditional and digital banking preferences, explore the emergence of hybrid banking practices, and dissect the factors influencing Germans’ choices in the financial realm. Join us on a journey through the nuances of banking habits and attitudes in Germany.

What is meant by digital banking?

Digital banking refers to the use of electronic channels, platforms, and systems to conduct various financial activities and transactions. It encompasses a wide range of services, including online banking, mobile banking, and digital-only banking, allowing users to manage their financial affairs with convenience and efficiency.

On the other hand, traditional banking involves physical branches where customers interact face-to-face with bank representatives for various financial services. It is characterised by comprehensive offerings and often relies on paper-based transactions. While traditional banking remains dominant, digital alternatives now offer online and mobile access, reshaping the banking landscape.

Traditional vs. Digital: A Demographic Perspective

Our journey begins with a glance at the foundations of German banking, where half of the population still holds traditional bank accounts linked to long-established institutions with physical branches. Notably, this demographic is more prevalent among women aged 46 to 55, highlighting a generational and gender-specific trend in banking preferences. On the flip side, 20% of Germans have embraced the purely digital route, choosing accounts with digital-only banks.

20% of Germans have chosen accounts with digital-only banks.

The Rise of Hybrid Banking

Enter the era of hybrid banking, where the lines between traditional and digital blur. A notable 30% of Germans are navigating both realms, maintaining accounts with both traditional and digital-only banks. This group seeks to harness the advantages offered by each model, balancing the familiarity of physical branches with the convenience of digital transactions.

Adopting Digital-Only Banking

While traditional banking remains deeply ingrained, a noteworthy revelation emerges among those solely adhering to traditional bank accounts. Within this group, 25% express a willingness to consider digital-only banks, and interestingly, this inclination is more pronounced among the younger age group of 30 to 35. However, a gender-specific pattern emerges, with women displaying a certain level of scepticism towards the digital-only banking model.

Among the traditional bank users, 25% are willing to consider digital-only banks.

Understanding the ‘Stay Put’ Mentality

Why do individuals resist the allure of digital-only banking? The top three reasons are revealed: 55% are content with their current bank, 44% value the option of physical branch visits, and 23% harbour trust issues with digital-only banks. These findings underscore the enduring loyalty that traditional banks command, emphasising the importance of trust and physical accessibility in the eyes of consumers.

Digital banking

Source: DCMN Brand Tracker, January 2024 Sample size: 744

Digital-Only Enthusiasts: What Sets Them Apart

On the flip side, digital-only bank users sing a different tune. For them, the benefits lie in lower fees (48%), the freedom to manage finances at their convenience (46%), and the ease of opening new accounts (45%). This cohort of enthusiasts paints a picture of financial liberation, where flexibility and cost-effectiveness take centre stage.

Digital banking

Source: DCMN Brand Tracker, January 2024 Sample size: 983


High Satisfaction Among Digital-Only Users

Contrary to any reservations, a whopping 81% of digital-only bank users express satisfaction with their chosen banking model. This high level of contentment attests to the success of digital banks in meeting the expectations of a significant majority, heralding a positive trend in the digital banking landscape.

81% of digital-only bank users express satisfaction with their chosen banking model.

However, for the remaining 19% not entirely satisfied with their digital-only bank, a few pain points surface. Limited ATM networks for cash withdrawals (24%), unexpected fees (19%), and a lack of robust customer support (13%) stand out as areas that require attention and improvement. A further 12% mention that the apps are not user-friendly enough. 

Why Digital Banking is the Future?

As we witness a notable shift towards digital banking, the question arises: Why is digital banking considered the future? The answer lies in its inherent ability to provide a seamless and accessible banking experience. Digital banking eliminates geographical constraints, allowing users to conduct transactions, access services, and manage their finances anytime, anywhere. Some of the players in the German digital banking landscape include:

  • N26: N26 is a German digital bank that offers a mobile banking platform with features like real-time transaction notifications, budgeting tools, and a sleek metal card, providing users with a modern and convenient banking experience.
  • Vivid Money: Vivid Money is a digital banking app in Germany that combines banking and investing, offering users a vibrant and visually appealing interface, along with features like cashback rewards on spending and the ability to invest in stocks and ETFs directly through the app.
  • Revolut: Revolut is a fintech company and digital bank based in the UK, but widely used in Germany, providing users with a multi-currency account, international money transfers at competitive rates, and various financial services, including cryptocurrency trading and stock investing.
  • Bunq: Bunq is a Dutch mobile banking app that has gained popularity in Germany, offering users a range of financial services, including multi-currency accounts, real-time payment notifications, and the ability to create sub-accounts for specific savings goals, all with a focus on user-friendly design and personalisation.
  • Monese: Monese, originating in the UK, is a digital banking platform available in Germany, providing users with a quick and accessible way to open a mobile bank account, even without a local address or credit history. Monese emphasises easy international money transfers and offers features like budgeting tools and real-time transaction alerts for a seamless banking experience.


As we conclude our exploration of Germany’s digital banking preferences through the lens of the DCMN Brand Tracker, the data reflects a nation at the crossroads of tradition and innovation, with individuals navigating the financial landscape in ways that align with their values and preferences.

While traditional banks maintain a stronghold, the allure of digital-only options is undeniable, especially among the younger demographic. As the financial ecosystem continues to evolve, these insights serve as a compass, guiding the industry towards a future where convenience, trust, and innovation harmoniously coexist.

Want to know more? Just contact us and we’d be happy to help.


  1. DCMN Brand Tracker – monthly research among 2000 German consumers

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