Bundeskartellamt has no objections to savings banks' offer of app-based current account

Several savings banks are currently planning to develop a joint app under the project name "Yomo" ("Your Money“), which would allow a customer to open and operate an account via a mobile telephone. As the individual regional savings banks would compete with one another in offering such a nationwide service, the Bundeskartellamt has examined the project.

Andreas Mundt, President of the Bundeskartellamt: "The savings banks informed us in advance about their plans. In the form in which they presented these to us, we have no competition concerns about the project. This cooperation between the savings banks will also enable smaller banks, in particular, to offer their own app-based current account and to target young customers. This is likely to stimulate competition in the current account market."

The app will enable a customer to select a bank offering such an account from the savings banks participating in the scheme. The service is to include the basic functions of a normal current account, including the use of a standard debit card for withdrawing money and making payments. This basic service is to be free of charge. The participating savings banks will set their own conditions for any further services requested by the customer, such as a credit card or overdraft facility.

With this offer for customers within Germany, irrespective of where they live, the participating savings banks are direct competitors in this service segment. Their joint agreement to offer the basic version of an app account free of charge could constitute an anti-competitive agreement.

However, within its scope of discretion, the Bundeskartellamt has decided not to open any proceedings against the savings banks participating in the app project. The joint activity of the savings banks seems justified in this case because it will also give smaller banks, in particular, the opportunity to gain new customers via the app-service. It also seems necessary in the current market environment to offer the basic version of an app account free of charge. The agreement is therefore expected to only insignificantly restrict competition, if at all.