Deutsche Bank CEO Acknowledges Customer Disappointment and Vows to Regain Trust Amid Postbank Issues
Deutsche Bank's CEO, Christian Sewing, has acknowledged customer dissatisfaction due to issues at its Postbank unit and has committed to allocating additional resources to swiftly rebuild trust. This statement follows criticism from Germany's financial regulator regarding disruptions in Postbank's online services, challenges in reaching customer support, and extended processing times, which the regulator termed "unacceptable."
For Deutsche Bank, this setback comes as it strives to regain credibility after facing substantial fines for failures in money laundering controls. "We have not lived up to our responsibility here – and now we have to work all the harder to fix the problems quickly and completely – and regain trust," Sewing said.
While Deutsche Bank had previously issued apologies for the problems at Postbank, Sewing's recent comments provide the most comprehensive response from the bank on this issue.
The integration of Postbank, with its extensive customer base and historical ties to Germany's postal system, began in 2008 during the global financial crisis. However, Deutsche Bank encountered challenges in completing this integration for several years.
In July, the bank had announced the successful conclusion of the integration process. Nevertheless, two weeks ago, Germany's financial regulator, BaFin, expressed concerns about "considerable disturbances" at Postbank, prompting further scrutiny.
BaFin had indicated that it might take "relevant supervisory measures if appropriate." This week, BaFin's chief, Mark Branson, criticized Deutsche Bank's handling of the situation, describing it as "unacceptable and extraordinary" in a newspaper interview.
Sewing admitted that Deutsche Bank had made "clear mistakes" by underestimating the volume of customer inquiries resulting from the IT integration. He acknowledged the gravity of the situation, but also noted improvements in recent weeks.
To address the issue, the bank has deployed an additional 400-500 staff members, and Sewing himself receives regular briefings from the board member overseeing the division. Deutsche Bank's supervisory board will also conduct an examination of the matter, according to Sewing's statement.
By fLEXI tEAM