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The leading financial regulator in Germany has decided to assign a supervisor to Deutsche Bank to oversee the resolution of customer service issues that arose during the integration of its Postbank subsidiary. Customers had lodged complaints about being locked out of their accounts and experiencing difficulties reaching the bank’s call centers.
The head of the regulator, BaFin, expressed strong dissatisfaction with the problems encountered at Postbank, deeming them “unacceptable” and implying potential consequences for Deutsche Bank.
Consumer advocacy organizations have reported numerous grievances from Postbank customers, including extended periods without access to their funds and rejected direct debit transactions, which could harm their credit ratings.
These issues represent a setback for Deutsche Bank’s efforts to rebuild its reputation following fines related to shortcomings in its money laundering controls, regulatory raids, and other penalties.
Since 2018, BaFin had already assigned a monitor to Deutsche Bank to oversee its money laundering controls.
Deutsche Bank responded by stating, “We are making progress in improving processing times at Postbank as part of the action plan agreed with BaFin.” A spokesperson emphasized that resolving the matter was a top priority.
Deutsche Bank initiated the acquisition of Postbank, a bank with millions of clients and deep roots in Germany’s postal system, in 2008 during the global financial crisis. However, the integration process proved challenging for many years.
While Deutsche Bank announced the completion of the integration’s final phase in July, BaFin, in an unusual rebuke, reported “considerable disturbances” at Postbank in September.
In 2019, Deutsche Bank, one of the world’s major financial institutions, launched a nearly €9 billion ($9.5 billion) four-year turnaround plan after years of financial losses. This effort succeeded in restoring profitability, but the bank’s stock price has struggled to gain momentum, and reputational issues continue to arise.
The U.S. Department of Justice extended the term of its separate monitor at Deutsche Bank last year.
Deutsche Bank’s CEO, Christian Sewing, acknowledged the bank’s mistakes regarding Postbank and mentioned the allocation of hundreds of additional staff members to address these issues. He stated, “We have not lived up to our responsibility.”
The Federation of German Consumer Organisations, which has witnessed a surge in complaints against the bank, called on Deutsche Bank to fully compensate affected clients, as many had reportedly lost patience.
Deutsche Bank pledged to review each case and provide compensation for damages “attributable to us.”
BaFin specified that the special monitor would provide regular updates and remain in place until all issues were fully resolved. A spokesperson for the regulator noted that the objective of this measure was to swiftly restore normalcy for customers.
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