Cooperative Banks Aim to Catch Up with Younger Customers - Germany’s cooperative banks race to modernize amid mergers and digital demands
Germany’s cooperative banks are facing growing pressure to modernise and attract younger customers. With rural branches closing and digital services expanding, the sector is also seeing more mergers. Michael Hoeck, chairman of the German Cooperative Association (Genoverband), has called for faster action to adapt to changing demands.
The number of cooperative Volksbanken and Raiffeisenbanken has steadily declined. In 2025 alone, 23 mergers reduced their total to 645. Another planned merger between Volksbank Filder and Volksbank Plochingen will be decided in summer 2026.
Hoeck has stressed the need to improve digital services to appeal to younger clients. He warned that relying on outdated methods—like promotional interest rates or gimmicks—would not work. Instead, the focus must shift to better online banking and advisory tools. Despite nationwide declines in membership, cooperative banks aim to keep their numbers stable. Hoeck also cautioned that inflation fears could push Germans back into holding large sums in low or zero-interest accounts.
The trend of consolidation is set to continue, with more mergers likely in the coming years. Digital transformation remains a key challenge as cooperative banks work to secure their future. The sector’s ability to adapt will determine whether it can retain and grow its customer base.
