Direktbank

Direktbank (direct bank) is a financial institution that primarily operates through direct channels, such as online banking, mobile apps, and telephone services, with little or no reliance on physical branches. The term is widely used in German-speaking markets to describe banks that emphasize digital access and self-service.

Core characteristics include a fully digital customer journey, including account opening, management of everyday banking, and investment services. Typical products offered by Direktbanken include Girokonto (checking accounts), savings accounts and time deposits, online brokerage and investment plans, consumer and mortgage loans, and payment services such as SEPA transfers. Customer support is usually provided via online chat, email, or phone, while branch-based advisory services are limited or absent. Security measures commonly include two-factor authentication, TAN or push TAN systems, and robust online security protocols.

Business model and advantages revolve around lower overhead from having few or no branches, which can translate into lower fees and more favorable interest rates for savers. This model appeals to self-directed customers who prefer 24/7 digital access and rapid service. Disadvantages can include reduced in-person advisory options, fewer opportunities for handling cash, and greater reliance on technology and internet access for routine banking tasks.

Regulation and protection in Germany fall under BaFin supervision and the local deposit insurance framework. Deposits are protected up to a statutory limit (generally around €100,000 per customer per bank) through the German deposit guarantee system (Entschädigungseinrichtung deutscher Banken, part of the broader European framework).

Notable examples of Direktbanken include ING-DiBa, DKB (Deutsche Kreditbank), and 1822direkt. Historically, others such as comdirect and Consorsbank have played prominent roles in the direct-banking sector.