Ready to change
Tangible values. In an increasingly digitalized world, the number of tactile business models is continuously decreasing. Reisebank AG in Frankfurt has always stood for a tactile business model and tangible values – precious metals, foreign currencies, and cash. And it is still an important point of contact for travelers to exchange money. Yet, Reisebank is also adapting to the challenges of tomorrow. And is working on modernization, without losing sight of its fundamental values.
Wirtschaftsforum: Mr. Krieger, since the first of October this year, you have been the CEO of Reisebank AG. Many know the bank from train stations or airports, where you can easily exchange money for your upcoming vacation. The introduction of the euro and online banking have long since brought new challenges. How has Reisebank evolved with the changing market?
Torsten Krieger: Reisebank is a venerable institution with an almost 100-year history, where cash supply has always been a priority. It was founded in 1926 as a currency exchange by the German railways and quickly became a major player in the travel sector. An important step was the switch to DZ Bank AG in 2004, which was accompanied by integration into the cooperative sector. Since then, Reisebank AG has been a 100% subsidiary of DZ Bank AG and incorporated into the Cooperative Financial Group Volksbanken Raiffeisenbanken. The portfolio has broadened over the years; besides cash management – we also operate ATMs – for example, gold has been added to the portfolio. We are currently facing the next major step. How do we manage to either enlarge our very tactile business model or digitize parts of it?
Wirtschaftsforum: Is Reisebank facing a comprehensive transformation?
Torsten Krieger: We are in the middle of the process, restructuring the company, reorganizing it, and changing business fields.
Wirtschaftsforum: What does Reisebank's setup look like today?
Torsten Krieger: There is headquarters in Frankfurt and a larger location in Düsseldorf, plus 84 branches throughout Germany, mostly located at airports and main train stations. Some branches are performing well and others less so due to changed customer behavior. It can still be helpful to carry some cash in the relevant currency as a backup when traveling, but today the typical tourist is likely to get foreign currency at an ATM upon entry, instead of exchanging it. In light of this, we are optimizing and transferring our branch model. We have tried new formats in Munich and Berlin and found, for example, that gold shops work well. We are the only bank with such an offering. As trust plays a big role here, we can make an impact as a reputable, traditional bank.
Wirtschaftsforum: Reisebank deals with tangible values like cash, gold, and precious metals. Can you describe the business model in more detail?
Torsten Krieger: Since we are in the cooperative sector, this is where our main clientele is found. Typically, foreign currencies at a Volksbank or Spardabank come from us, and the same is true for gold. Here, we also see our focus in the future – moving away from the free market towards the cooperative sector. Nevertheless, we will continue to operate branches and a webshop, which has been developing very well for years. In the foreign currency field, we are number 1 in Germany with a robust market share and also see good opportunities for the future – the travel desire of the Germans is growing stronger than the use of digital offerings.
Wirtschaftsforum: Reisebank is undergoing a transformation process. What impulses do you, as the CEO, intend to provide to the company on this journey?
Torsten Krieger: I joined Reisebank as part of a succession structure, with the aim of accompanying the bank into the future and driving the change process. This requires a certain speed and dynamism; developing this is one of my key tasks. Another challenge I see is a stronger focus on customers. As a bank, we were always more process-oriented; now it's more about finding out what customers really need and responding to that. Products need to be adjusted. For instance, we have started to completely rethink our branch models from the customer frontend; we are active in both B2C and B2B sectors. Therefore, we must cater to both the needs of end customers and the banks. Our online business has been modernized with the customer journey in mind. Even in the branches themselves, we want to make each visit an exceptional experience. And lastly, digitization will change our work. We have begun to implement first AI solutions in business cases and by next year, we will be able to provide a completely digitalized customer authentication solution; in the e-commerce sector, we are already very well positioned.
Wirtschaftsforum: Every change process must be supported by the employees. What kind of corporate culture does Reisebank stand for?
Torsten Krieger: I believe that modern companies should not be led hierarchically but should rely on the competence of employees. It’s simultaneously about motivation and enjoyment; then, the performance is right in the end. Part of the transformation process is therefore reducing hierarchies and establishing an open corporate culture. We are very diverse concerning education and nationalities and benefit greatly from this. We have many talented and competent employees to whom we will provide greater freedom for development; this is also part of the cultural change. We are facing major changes and hope to complete this change process by 2030.