Postbank is further extending its product range, commencing with mobile sales. On Monday Prof. Dr. Wulf von Schimmelmann, Chairman of the Management Board at Deutsche Postbank AG announced to journalists in Frankfurt that Postbank had acquired two subsidiaries from Credit Suisse (Germany) AG, for this purpose. "With our business concept we want to combine 'the best from two worlds' for our customers: on the one hand, modern multi-channel banking with a broad-based network of branches, online banking, telephone banking and reasonably priced products. And, on the other hand, the personalised finance and investment advice, where trust and familiarity play a role", as von Schimmelmann explained.

The new "Postbank Vermögensberatung AG" is to address Postbank customers whose assets and income have corresponding potential, without however coinciding with Private Banking. Von Schimmelmann emphasised that Postbank would not turn away from its successful profile as multi-channel bank with simple and reasonably priced products. "We will not place the main weighting on the contested segment of the wealthy above the EUR 500,000 level. 'Private Banking' would be to turn away from our successful model."

Moreover, the bank intends to extend its range and to better exploit its additional potential. Von Schimmelmann: "It is our aim to increasingly address customers individually and thus to generate loyalty. As an additional sales channel we will offer our products to these customers in their usual surroundings. A small network of highly qualified consultants is our ticket to mobile sales and thus into particularly customer-oriented asset management."

In contrast to other concepts Postbank does not intend to push its customers into an "Either/Or" situation, but offer them a clear "As well as" option. The decision as to how much Postbank the customer wishes to have is made by the customers themselves. Decisive in the selection of branch or mobile consultant is the type of customer request alone. Von Schimmelmann: "Branches are and will remain the most important channel for our customers and for us. Mobile sales will become a strong supplement, but not competition."

Large potential exists

According to the statements of Board member, Dr. Wolfgang Klein, responsible for Consumer Services, Postbank has great potential for the new offer. Approximately 550,000 of the total of ten million customers have an investment volume above the EUR 25,000 mark or a net household income of more than EUR 3,000. The bank intends to offer these customers not only investment funds but also direct investments in shares, bonds, certificates and options through its mobile consultants. Closed funds and structured specialty products are included in the offer as are standardised portfolios, asset management and endowment and term life contracts. These products are partially provided by third parties. Postbank will supplement its previous range with core products such as current accounts, credit cards, time deposits and savings offers, private loans and – via the other Postbank brand, DSL Bank – construction finance.

According to Klein, the bank intends to address approximately 40,000 customers via "Postbank Vermögensberatung AG" medium-term. Postbank will start out with a good 100 consultants next year. It is planned that Postbank will have around 300 consultants by the end of 2005. Postbank anticipates breaking even at this time.