Branch death in Austria: banks close steadily and fees rise quickly!

Branch death in Austria: banks close steadily and fees rise quickly!

In the past two decades, the banking landscape in Austria has changed drastically. While the number of bank branches decreases sharply, the fees for account management and financial services are continuously increasing. 5min.at reported that around 30 % of all bank branches have been closed since 2005, which corresponds to more than 1,500 locations.

The decline in the branches particularly affects Raiffeisen and Volksbanks. According to the momentum institute, around 5,046 bank branches in Austria were still open in 2005. Finally, in 2024, this number fell to only 3,526 branches. This illustrates the strong trend towards fewer physical bank locations, especially in rural areas.

branch death in detail

Raiffeisen closed the most branches between 2005 and 2024 and had to give up 758 locations, which corresponds to a decline of a third of the original network. Volksbanks also suffered significant losses: their number is reduced from 550 to only 233. Sparkasse reduced their branches from 1,063 to 742.

In contrast, building societies have increased from 56 to 72 branches, which is an increase of 29 %. While large stock banks such as Bank Austria and Bawag have only closed a small number of branches, the decline in other sectors is alarming.

rising fees despite the branch closings

an equally worrying trend is the increase in bank fees. These have increased by a total of 62 %since 2005. The increases between 2021 and 2024 are particularly significant, in which the fees rose by 33 %, which is more than twice as high as the general inflation of around 20.5 %. The National Bank has reacted and puts ATMs in regions where private banks are no longer present.

The banking industry attributes the branch closures to digital change and changed customer behavior. Customers are increasingly choosing online banking, which means that the role of the branches comes to the fore as pure consulting centers. In the long term, these developments could not only affect the banking landscape, but also the infrastructure of rural communities. In summary, it can be said that the closures of bank branches not only have an impact on the accessibility of banking services, but also redefine the fee structure in the financial sector. According to tt.com , many customers feel restricted by the steadily increasing fees and the lower offer in their mobility and financial flexibility, which is based on an urgent need for action on the part of the banks point out.

The current trends raise questions about the future of the banking system in Austria. Momentum Institute emphasizes that the closures of branches can also lead to the expiry of local nuclei and the development of bankless zones, which will be felt especially in rural areas.