Economic Effects of the Digital Transformation on the Banking Market Using the Example of Savings Banks and Cooperative Banks in Germany

Due to the digital transformation, the banking sector in Germany is undergoing massive change. This structural change is massively influenced by technological progress, regulation and supervision, the low-interest phase and demographic change. The focus of this research is on the comparison of savings banks and cooperative banks in Germany, as there are many similarities between the two banking groups. Both belong to the so-called retail banks. The respective bank clients are very similar due to the regional principle, the structure in regional associations and in their clientele. The main purpose of this research is to investigate which of the two banking groups, savings banks or cooperative banks, is more operationally efficient under the same prevailing competitive pressure from the Digital Transformation. This paper summarises the analysis of both banking groups based on real ratios. The relevance of the findings on this scientific problem is that the comparison of savings banks and cooperative banks in Germany has not been addressed in the scientific literature so far. The aim of the research is to make a statement as to which banking group has performed better given the same external market factors. Furthermore, arguments and counter-arguments within the academic discussion on the topic of digitalization in the German banking market will be compiled. The results of the research can be useful for academics who deal with the digital transformation in the banking sector in Germany.