German regulator installs monitor at Deutsche Bank for Postbank complaints. An embarrassment to the nation’s leading bank, Germany’s top financial regulator has appointed a special monitor to supervise Deutsche Bank’s (DBKGn.DE) handling of customer service issues at its Postbank division.
The interruptions to Postbank’s online services, the difficulty customers faced contacting customer support, and the lengthy processing periods have all been deemed “unacceptable” by the chairman of the regulatory body, BaFin. The problem has been a blow to Deutsche Bank’s attempts to rebuild its reputation following fines for lax money laundering measures, government raids, and other penalties.
Since 2018, Deutsche has had a BaFin monitor to check money laundering measures.
As part of the action plan established with BaFin, Deutsche Bank stated that “we are making progress in improving processing times at Postbank.” The matter was described as being of “highest priority” by a representative.
During the 2008 global financial crisis, Deutsche started the purchase of Postbank, which has millions of customers and its origins in the nation’s postal system but battled for years to integrate it.
The bank claimed in July to have finished the last stage of the integration, but in an uncommon reprimand in September, BaFin claimed to have seen “considerable disturbances” at Postbank.
After years of losses, Deutsche, one of the most significant banks in the world, started a four-year, approximately $9 billion ($9.5 billion) recovery plan in 2019. The initiative restored earnings, but the bank’s stock price has dipped, and reputational problems have persisted.
Last year, the US Department of Justice extended the tenure of its unique monitor at Deutsche.
Christian Sewing, the chief executive officer of Deutsche, acknowledged that the company had erred in its handling of Postbank and that hundreds of new employees had been hired to address the problems.
Sewing stated last month, “We have not upheld our responsibility here, and now we have to work even harder to fix the problems as quickly and completely as possible – and to regain trust.”
According to BaFin, the special monitor will continue to provide updates until the faults are “fully remedied”. According to a regulator spokeswoman, the action aims to return normalcy for subscribers swiftly.
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