European banks lost 9,000 branches and 50,000 staff last year while customers embraces online banking

The European Banking Federation has published the 2017 EBF Facts & Figures, its annual update on the banking sector in Europe. The publication shows that the contraction in terms of staff numbers and branches in the European banking sector continued in 2016 as customers increasingly embrace electronic payments as well as online and mobile banking. Eurozone deposits and loans grew slightly.

The overview shows that banks have continued to scale back their physical presence across Europe as the importance of widespread bank branch networks is reduced. The number of bank branches in the EU declined to 189.270, showing that about 9.100 branches were closed last year. The number of branches compares to 237.701 in 2008.

The number of people working for credit institutions in the EU fell to 2.80 million last year from 2.85 million a year earlier. This compares to 3.26 million in 2008. The number of credit institutions in the EU has consistently fallen for eight years in a row and declined last year by 453 to 6.596 banks from 8.525 in 2008. Germany is home to more than 25% of all banks in the EU.

The European Banking Federation is the voice of the European banking sector, uniting 32 national banking associations in Europe that together represent some 3,500 banks – large and small, wholesale and retail, local and international – employing about two million people. EBF members represent banks that make available loans to the European economy in excess of €20 trillion and that securely handle more than 400 million payment transactions per day. Launched in 1960, the EBF is committed to creating a single market for financial services in the European Union and to supporting policies that foster economic growth.

Source: European Banking Federation