Deutsche Bank Customer Backlash: Deutsche Bank’s got a bit of a headache on its hands. Customers from two of its units have been flooding Germany’s consumer protection agency with complaints. In the year through September, the VZBZ consumer group registered a staggering 1,700 complaints from customers of Deutsche’s Postbank division and its mortgage arm. That’s nearly three times the number of complaints they received in the entire year of 2022.
So, what’s causing this commotion? Earlier this year, Germany’s largest bank fumbled its attempt to integrate the Postbank arm. This led to customers griping about being locked out of their accounts and having no luck reaching the bank’s call centers.
Even the top regulator in Germany is giving Deutsche Bank a hard time over this, and the bank’s CEO had to offer up a mea culpa. It’s definitely a setback for Deutsche Bank, which has been trying to regain its reputation after dealing with fines for various issues, including money-laundering lapses, over the last decade.
A spokesperson for Deutsche Bank said they’ve brought in over 500 extra staff to tackle the problem, and there’s been “progress in all areas subsequently affected by the IT integration at Postbank.” According to the spokesperson, “Two-thirds of the customer-relevant backlogs have already been dealt with.”
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But these customer complaints aren’t just about not being able to access their funds or having direct debits rejected, which can mess with their credit scores. The VZBZ consumer group reports that nearly one in five complaints are related to customer service problems.
As the banking industry continues to cut jobs, customer service appears to be taking a hit, leaving consumers feeling stranded when problems crop up, according to Ramona Pop, the head of VZBZ.
Deutsche Bank has been trying to sort out its relationship with Postbank since it started acquiring the company back in 2008. The integration process has been a long and rocky road, and even though Deutsche Bank claimed it had finally wrapped things up in July, the German financial regulator BaFin wasn’t convinced. In September, BaFin publicly expressed concerns about “considerable disturbances” at Postbank.
This was not well-received, and the regulator received almost 10,000 complaints about Postbank by early September. In response, BaFin’s president took the unusual step of calling the situation “unacceptable” and assigned a special monitor to Deutsche.
Deutsche Bank’s CEO, Christian Sewing, acknowledged the mistakes made, saying, “We have not lived up to our responsibility.” It’s clear that Deutsche Bank still has some hurdles to overcome in its quest for stability and customer satisfaction.
Our Reader’s Queries
Is Deutsche Bank a reliable Bank?
Since 2011, the Financial Stability Board has recognized Deutsche Bank as a global systemically important bank. This designation highlights the bank’s significance in the global financial system and its potential impact on the economy.
Is Deutsche Bank a creditor to alleged launderers Singapore firm?
Golden Eagle Assets Pte, a Singaporean company, has recently come under scrutiny for its alleged involvement in a money laundering and forgery ring. Two of its directors have been arrested in connection with the case. Deutsche Bank AG, a creditor to the company, has a charge registered against it as of May 22.
Is Deutsche Bank doing better?
Deutsche Bank has achieved impressive revenue growth, with a 6% increase in the first nine months of 2023 and a compound annual growth rate of 6.9% over the past year, surpassing the bank’s target of 3.5% – 4.5%. The bank is projecting full-year revenues of approximately 29 billion for 2023. This outstanding performance is a testament to the bank’s commitment to delivering exceptional results for its clients and stakeholders.
Why Deutsche Bank over other banks?
Deutsche Bank is renowned in the finance industry for its exceptional talent development programs that empower young individuals to achieve their full potential. The bank has a strong reputation for supporting Black, Asian, and minority ethnic entrepreneurs by dedicating its resources to initiatives like the DBACE award. This award is a testament to the bank’s commitment to fostering diversity and inclusivity in the business world.