Leadership Wins, Crypto Spins, and the Parental Perks Stakes Race

Guten Morgen,

Welcome to the second edition of The Bottom Line—your monthly must-read for the latest leadership trends, strategic insights, and industry shifts, specifically crafted for senior professionals in the German banking sector.

If our first edition painted a picture of the challenges facing today’s CFOs, and this month we’ll explore how those same challenges are evolving into opportunities. As we continue to navigate economic pressures, a tightening talent market, and the ongoing integration of AI, what’s becoming clear is that adaptability and forward-thinking leadership are more critical than ever. The once-linear career path in banking is now a maze, and those who can steer through it will be the ones to rise.

There have been some pivotal updates in banking this month. ING-DiBa AG is setting a new standard for employee benefits in Frankfurt, offering four weeks of paid parental leave to employees whose partners have a child—compared to the standard one day offered by most banks. Meanwhile, Commerzbank AG is at the center of significant discussions, as HypoVereinsbank - UniCredit - Deutschland explores a potential acquisition, sparking debate at the highest levels of government, with concerns over job security and small business support. In other news, the new Riester alternative in pension reform offers exciting opportunities for banks and fintechs, while Commerzbank’s entry into the cryptocurrency space positions it as the first major German bank to serve institutional investors in this growing market. We also cover recent wage agreements that see banking employees benefiting from significant pay increases across the sector. Finally, fintech companies like Revolut continue to disrupt the market, raising competition stakes for traditional banks.

Herzlichen Glückwunsch to the newly appointed CFOs and Executives in the Accountancy & Finance space! Their appointments reflect a decisive shift toward leaders who possess not only deep technical expertise but also the agility required to excel in today’s increasingly complex landscape.

I hope you find value in this edition. Whether you’re reimagining your leadership team or planning for the future, I’m always here to help. Feel free to connect with me directly at +49 (0) 173 131 9600 or [email protected] .

Mit freundlichen Grü?en,

Lucy

#leadership #executivesearch #talentacquisition #CFO

BANKING NEWS

ING Diba is raising the bar in the competition for top talent in Frankfurt by offering four weeks of paid special leave to employees whose partners have a child, compared to the current two days. In contrast, a survey by Bloomberg reveals that most other banks, such as Deka, Helaba, BayernLB, and DZ Bank, typically offer just one day of special leave for this circumstance.

German Finance Minister Christian Lindner has stepped into the debate over a potential sale of Commerzbank to Italy's Unicredit, warning against a hostile takeover in talks with the Italian Finance Ministry, according to Tagesspiegel. While Lindner's spokesperson avoided commenting on specific discussions, insiders reveal that high-level meetings between Commerzbank and Unicredit have occurred, signaling Unicredit's interest in acquiring up to 21% of Commerzbank shares. Chancellor Olaf Scholz has expressed dissatisfaction with Unicredit CEO Andrea Orcel's aggressive approach, emphasizing the need for Commerzbank to maintain independence, particularly in supporting small and medium-sized businesses. Despite this, Commerzbank's leadership, including incoming CEO Bettina Orlopp, is open to evaluating Unicredit's offer, though the bank aims to remain independent. Concerns over potential job losses and diminished support for small businesses have arisen, with FDP voices arguing that shareholders, not politicians, should decide on a potential takeover.

The new "Riester alternative" outlined in the BMF’s draft law offers significant benefits for banks and fintechs, removing the mandatory capital guarantee and reliance on pension insurance, and introducing return-oriented savings accounts. Subsidies will increase, with personal contributions matched at 20 cents per euro up to €3,000 (€3,500 from 2030), along with bonuses for low earners and families. The reform simplifies digital processes and introduces a comparison platform, giving fintechs a competitive edge. Banks and fintechs can target over 10 million existing Riester contracts for switching to the new system, though the low initial deposit amounts may challenge profitability. A "Riester light" model with 80%-100% contribution guarantees will also be offered for security-conscious investors.

Commerzbank has launched a new cryptocurrency offering for institutional investors, in partnership with Crypto Finance, a Deutsche B?rse subsidiary. The service allows professional investors such as pension funds, insurers, and asset managers to invest in Bitcoin and Ether, with Commerzbank handling custody and Crypto Finance managing trading. This move positions Commerzbank as the first major German bank to enter the crypto market. Crypto Finance expects growing demand, predicting a surge in Bitcoin value, potentially exceeding $100,000 by early 2025. Other major German banks, including Deutsche Bank and DZ Bank, are also preparing to enter the crypto space

In recent wage negotiations at German banks , employees at state banks, development banks, and some large savings banks will receive an 11.5% pay increase over 32 months, starting with 6% in November 2024, followed by two smaller increases in 2025 and 2026. Private banks agreed to a 10.5% increase over 26 months, starting with 5.5% in August 2024. For cooperative banks, negotiations are ongoing, with unions demanding a 13.45% increase. Other recent agreements include wage hikes for Postbank, VR banks, and savings banks, alongside inflation bonuses and job security provisions.

The entry of fintech companies like Revolut into traditional banking services, such as offering German IBANs, signals increasing competition with long-established banks. Fintechs such as N26, Trade Republic and Klarna are rapidly gaining ground, offering similar services to direct and traditional banks, creating a crowded market. Experts predict further consolidation, as coexistence between neobanks, direct banks, and traditional banks may not be sustainable long-term. A "marketing battle" is expected, with customer loyalty hinging on service quality and brand perception; indeed, it is widely predicted that Revolut will overtake N26 next year. The upcoming reform of private pension provisions offers a major opportunity, potentially revitalizing traditional banks due to their trustworthiness in retirement planning.

#DE&I is taking and ever-growing important place on banks’ agendas. Dr. Agnes Mirra is a shining example of how individual dedication can transform a corporate culture into one that truly embraces diversity and inclusion. With her Kenyan heritage at the heart of her identity, Agnes champions the creation of a work environment at Deutsche Bank where every voice is heard and valued. Her leadership in founding the “dbENRICH” network in Germany—focused on underrepresented groups—provides a platform for dialogue, connection, and allyship that is much-needed in the German banking sector.

RESOURCE CENTRE

Regulatory Reporting in the Banking Sector: More Rules, Less Talent

In an era where #RegulatoryReporting has moved from a back-office function to a critical element in financial institutions, the stakes have never been higher. With the ever-growing complexity of frameworks like #Basel III and #ESG reporting under the #EuropeanGreenDeal , #banks across Germany are scrambling to stay compliant and ahead of the curve.

EXECUTIVE MOVES

• Bettina Orlopp has been promoted to CEO of Commerzbank, becoming the first woman to lead the institution. Former CEO Manfred Knof stepped down earlier than expected, demonstrating his commitment to the bank’s future.
• Dr. Christian Ricken has been appointed Chairman of the Management Board at Aareal Bank AG, after serving on the Board of Managing Directors at LBBW and in senior roles at Deutsche Bank.
• Jasper Hanebuth is now Board Member and CFO at NORD/LB, while continuing his position as Member of the Board of Directors at LBS Landesbausparkasse NordWest.
• Jan Metzing has joined DARAG Group as CFO, bringing his expertise from Bank11 für Privatkunden und Handel GmbH.
• Joerg Bongartz has transitioned from CEO Northern and Eastern Europe to Chairman of the Supervisory Board at Deutsche Bank Polska S.A. and JSC Deutsche Bank DBU.

• Jens-Simon Vogt has been appointed Executive Director, Finance at Pagateq, a spin-off of Deutsche Bank, while continuing as Regional CFO.
• Oliver Schulte joins him as Managing Director, while also serving as Managing Director, Corporate Treasury Services at Deutsche Bank Corporate Bank.
• David Walch joined Mizuho Bank as Consultant & Business Analyst, Risk, further strengthening their risk management expertise.
• Richard Groeneveld was appointed Managing Director at DLL, following his role as CFO for the DACH region.
• Fritz Schr?ter was appointed Senior Manager, Financial Services Transfer Pricing at PwC, having moved from EY after eight years.

• Holger Bachmann has been promoted to Head of Tax at IKB Deutsche Industriebank AG.

• Florian Schauer has been appointed Member of the Board of Directors at Deutsche Postbank Group, while retaining his role as CFO of Personal Banking at Deutsche Bank.
• Nicolas Mayer has joined the board at Volksbank eG after over 30 years of service at the institution.
• Johanna Antonie Tjaden-Schulte was appointed Board Member at NRW.BANK , following her previous role as a Board Member at Commerzbank.

• Jan Schommartz has been named Chief Audit Executive at NatWest, following his tenure as Head of Internal Audit at Citi.
• Dimitri Noryk is now Head of Internal Audit at Nomura, previously holding a similar position at Jefferies.
• Jelline Sanchez Baumeister was promoted to Director, Head of Treasury Front Office at NatWest, after 16 years with the firm.

KEY PROMOTIONS

• Dirk Kipp has been promoted to Member of the Board of Managing Directors at LBBW, moving up from his position as Global Head of Markets.
• Ester Rojo Rodríguez has been promoted to Head of Accounting at Creditplus Bank.
• Ann-Kathrin Schmelz has taken on the role of Gruppenleiterin, Regulatorisches Reporting at Sparkasse.
• Gor Gabuzyan, ACCA, EMBA has been promoted to Head of Group Asset and Liability Management at ProCredit Holding after 12 years with the company.