Austria Lost Hundreds of Bank Branches

In Austria, the number of bank branches has significantly decreased over the past decades, according to an analysis by the Momentum Institute. Since 2005, it has declined by around 30 percent, the institute stated in a release on Friday. Twenty years ago, there were 5,046 branches, but by 2024, there were only 3,526. There have been significant declines, especially in the Raiffeisen and savings bank sectors. The WKÖ banking sector defended the decreasing number of branches.

1,522 Instead of 2,280 Raiffeisen Branches

The number of Raiffeisen branches has decreased from 2,280 in 2005 to 1,522, while the number of savings banks has reduced from 1,063 to 742 branches. The Volksbanken have also significantly thinned out their network, reducing the number of branches from 550 to 233 over the past two decades. In the sector of joint-stock banks and bankers - which includes Bank Austria and BAWAG, among others - significantly fewer branches have been closed, with 857 branches remaining in 2024, compared to 921 in 2005. There has even been an increase in building societies - from 56 to 72.

In contrast, the fees of credit institutions have risen significantly during the same period. Since 2005, there has been a 62 percent increase in bank fees, according to Momentum, citing an analysis of inflation data from Statistics Austria. The increase has been particularly strong in the past three years (since 2022).

WKÖ Banking Sector Defended Decreasing Number of Branches

Representatives of the banking industry defended the decreasing number of branches. It is the "result of a profound digital transformation and a significantly changed customer behavior," said Franz Rudorfer, Managing Director of the Federal Division of Banks and Insurance of the Austrian Economic Chamber (WKÖ), according to the release on Friday. Nowadays, customers conduct significantly more banking transactions online, and branches are primarily advisory centers. Overall, banking services have massively developed in terms of scope, quality, speed, and security.

(APA/Red)

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