Deutsche Bank, recently spotlighted for an enforcement against an affiliate, has encountered a new challenge. Following numerous complaints about the client services of Deutsche Bank’s Postbank unit, BaFin, Germany’s financial regulator, has decided to appoint a special overseer for the bank’s operations.
On Monday, BaFin expressed concerns over Postbank’s inconsistent online services and the challenges faced by customers when seeking help. As a remedy, BaFin will deploy a special monitor to supervise operations and gauge the bank’s improvements in areas of concern. This is in line with BaFin’s mission to enhance its oversight of the financial sector and to penalize non-compliance rigorously.
Deutsche Bank began its acquisition of Postbank segments in 2008, finalizing the $6.3 billion deal in 2012. By July this year, Deutsche Bank had integrated 12 million Postbank clients into its IT system. However, dissatisfaction among Postbank customers seems evident, with many holding Deutsche Bank responsible for their grievances.
Further dampening Deutsche Bank’s image, the bank’s investment banking division has seen a revenue decline in the first nine months of 2023. The drop is from $142 million the previous year to $127 million this year.
Deutsche Bank’s aspirations in the crypto realm are evident. They faced regulatory issues even as they applied to BaFin for a digital asset custodian license and explored new crypto endeavors in Singapore and Frankfurt. Yet, their success in this domain largely depends on their ability to regain the trust they’ve lost and BaFin’s consequent goodwill.
