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German cooperative banks urged to modernize and attract younger clients

Traditional banks are racing to adapt—or risk fading away. With mergers rising and rural branches closing, can digital services save Germany’s cooperative model?

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Cooperative Banks Aim to Catch Up with Younger Customers - German cooperative banks urged to modernize and attract younger clients

Michael Hoeck, chairman of the German Cooperative Association (Genoverband), has called on cooperative banks to modernise their approach. He stressed the need to attract younger customers and improve digital services. His comments come as the sector faces ongoing mergers and changing customer habits.

This year, eleven cooperative banks in the Genoverband region have merged, with further consolidations expected. Industry reports suggest around 23 mergers could take place in 2025, reducing the total number of cooperative banks to 645. Hoeck predicts double-digit merger figures in the coming years as smaller institutions combine to stay competitive.

Hoeck also warned about a growing trend: Germans are leaving large sums in low or non-interest-bearing accounts due to inflation concerns. He urged banks to offer better investment advice to help clients protect their savings. At the same time, he ruled out using promotional rates or gimmicks to draw in customers. To appeal to younger people, Hoeck highlighted the need for stronger digital services. Many cooperative banks are already shifting advisory services online as rural branches close. Despite nationwide declines in membership, Volksbanken and Raiffeisenbanken aim to keep their numbers stable by adapting to these changes.

The cooperative banking sector is undergoing significant shifts, with mergers and digital transformation at the forefront. Hoeck’s push for better youth engagement and investment advice reflects broader efforts to secure the sector’s future. The focus remains on stability and modernisation rather than short-term incentives.

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