Manfred Knof has no easy task: As the new head of Commerzbank, he is supposed to lead the financial institution out of the crisis. He wants to close branches and lay off numerous employees. The management expects a loss of 1.7 million customers by 2024, reports the “Welt”. According to some managers, these are mainly customers who hardly make a profit – Commerzbank will nevertheless make losses. For example, around 300 million euros less income is expected by 2024, reports “Welt”. To counteract this, investments should be made in loan growth and a greater focus should be placed on business with corporate customers and very wealthy private customers.
Commerzbank needs new customers
In the past few years, Commerzbank had recruited new customers with welcome money of up to 100 euros. There will be no such bonuses in the future, reports the “Welt”. In addition, customers must be prepared for the fact that they will have to pay for their account or securities account in the future, at least if certain conditions are not met. “We will come back to the market with new pricing models,” announced Knof.
Knof wants to attract new customers, but such price models could put them off. “How are you supposed to win customers when you provide services like a direct bank and charge prices like a branch bank?”, It says in Frankfurt financial circles, reports the “Welt”. The bank had acquired 375,000 new customers last year, but also parted ways with 340,000 inactive accounts. Knof wants to stop this development in the long term in order to lead Commerzbank out of the crisis. He describes his strategy as ambitious, but feasible – and ultimately as no alternative for the company, reports Die Welt. “We have no other choice,” he said recently.