Berlin Scares Off Banks Targeting the Rich as Fintechs Boom
- Several private banks stay away as they see lack of customers
- City’s demographics turned out to be a boon for fintech firms
This article is for subscribers only.
Berlin’s “poor but sexy” appeal has helped to turn the city into a fintech hub with Goldman Sachs Group Inc. investing there and local startup bank N26 being valued at $2.7 billion. For some of Germany’s biggest private banks, however, the city’s demographics are a reason to stay away.
The heads of Frankfurter Bankgesellschaft and 345-year-old Bankhaus Metzler declared Berlin unfit to house private banking locations in recent weeks, blaming the lack of lucrative clients. Some competitors like Fosun International Ltd.’s Hauck & Aufhaeuser are also missing in the city, while Berenberg is only maintaining a satellite office with two people.