Deutsche Bank has announced that it intends to close up to 200 branches and reinvest the savings into digital channels with the bank expected to invest an additional €1 ($1.09) billion over the next three-to-five years to create a more digital friendly bank. According to the leading German bank the move comes as part of a massive cost-cutting program which will include shrinking its securities business and selling Postbank.

The retail banking business will see an investment of 400-500 ($547) million on digital technologies while simultaneously reducing the number of branches by up to 200 branches by 2017. Commenting on the decision the bank released a statement saying,

“The bank plans to invest up to EUR1 billion additionally over the next three to five years in digitization to capture new revenue opportunities, for example, through remote advisory channels; realize platform efficiencies through automated or digitized processes; and develop new client propositions.”

The decision to close branches and invest in digital technologies is an increasingly popular decision among the leading retail banks across Western Europe and the United States. Deutsche Bank’s important strategic shift will help the bank focus on key aspects of the retail banking experience and ensure it remains one of the top banks in Germany and across some of the 70 countries it operates in.