"S-Neo": Savings Banks Exceed Their Own Target with New Securities Portfolio Offer
DSGV head Ulrich Reuter talks about more than 50,000 "S-Neo" accounts after just a few months. However, compared to the number of current accounts, this is a small number - and the overall market is fiercely competitive.
In July, following its market debut, Sparkassen customers have opened more than 50,000 brokerage accounts through the Sparkassen app. Sparkassen President Ulrich Reuter announced on Tuesday that the bank aims to surpass 50,000 new accounts by the end of the year, having already exceeded this target. The institution's response to the success of neobrokers like Trade Republic is the new brokerage product "S-Neo."
This service enables stock trading, such as with ETFs (exchange-traded funds), directly through the Sparkassen app, a process that was previously more complex. However, 50,000 accounts represent a small percentage of the bank's total customer base. S-Neo targets the 20 million users of the Sparkassen app, half of whom have not yet opened a brokerage account.
Sparkassen collectively has around 38 million private checking accounts. While the number of brokerage customers is increasing among Sparkassen customers, Reuter estimated the number at over eight million. Despite this, Sparkassen banks have been losing market share in this business over a longer period. Traditional brokerage accounts are significantly more expensive, and the process of trading was not easily accessible via the app.
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