Cash Group
Encyclopedia
Cash Group is a cooperation of the four largest German
private banks (Deutsche Bank
, Commerzbank
, HypoVereinsbank
, and Postbank
) and their subsidiaries, in which they mutually waive ATM usage fees
for their customers. It is not an interbank network
but uses the pre-existing girocard
network. With more than 7000 ATMs, the cooperating banks' ATM networks form the third largest ATM network in Germany.
The cooperation was founded in 1998 and is generally not open to other members. Its primary competitor in Germany is CashPool
.
network, charge ATM usage fees for customers of other banks.
Prior to 1998, the charge was fixed to 4,00 DM (2,05 €) or 1%, whichever was higher. However, this agreement was terminated by the Sparkassen (public banks), who jointly operate the largest German ATM network, arguing that the cost of operating ATMs was unfairly laid on them when virtual bank
s entered the market.
As a consequence, banks now had to deal with different ATM usage charges from other banks but were legally required to make definite quotes to their customers. Most of them simply charged their customers with the estimated maximum fee and pocketed the difference, which dramatically raised the ATM fees for banking customers.
Finally, in 1998, the five large German private banks formed Cash Group to counter the bad press resulting from the increase in ATM fees, waiving ATM usage fees within the Group and thus for customers of the Group's member banks.
After its formation, other German banks tried to become members of Cash Group but no other bank was accepted by the exsiting members, except new subsidiaries of the so called big five. Therefore, in 2000, several smaller German banks founded CashPool as an answer to Cash Group. Today, CashPool is Cash Groups primary competitor in Germany. However, with more than 2,500 ATMs, and 29 member institutions it is significantly smaller. Norisbank GmbH, one of the current members of Cash Group, originally was a member of CashPool. It left CashPool and became a member of Cash Group after its acquisition by Deutsche Bank in 2006.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
private banks (Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
, Commerzbank
Commerzbank
Commerzbank AG is the second-largest bank in Germany, after Deutsche Bank, headquartered in Frankfurt am Main.-Activities:Commerzbank is mainly active in commercial bank, retail banking and mortgaging. It suffered reversals in investment banking in early 2000s and scaled back its Securities unit...
, HypoVereinsbank
HypoVereinsbank
UniCredit Bank Aktiengesellschaft is the sixth-largest private German financial institution, with a strong presence in Bavaria. The company is based in Munich, and together with Deutsche Bank, Dresdner Bank, Commerzbank and Deutsche Postbank, it belongs to the Cash Group...
, and Postbank
Deutsche Postbank
Deutsche Postbank AG is a German retail bank with headquarters in Bonn. Postbank was formed from the demerger of the postal savings division of Deutsche Bundespost in 1990. It became a wholly owned subsidiary of Deutsche Post in 1999, and was partially spun out on the Frankfurt Stock Exchange in 2004...
) and their subsidiaries, in which they mutually waive ATM usage fees
ATM usage fees
ATM usage fees are the fees that many banks and interbank networks charge for the use of their Automated Teller Machines . In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users...
for their customers. It is not an interbank network
Interbank network
An interbank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks....
but uses the pre-existing girocard
Girocard
Girocard is an interbank network and debit card service connecting virtually all German ATMs and banks. It is based on standards and agreements developed by Central Credit Committee....
network. With more than 7000 ATMs, the cooperating banks' ATM networks form the third largest ATM network in Germany.
The cooperation was founded in 1998 and is generally not open to other members. Its primary competitor in Germany is CashPool
CashPool
CashPool is a cooperation of a multitude of smaller or virtual German private banks, in which they mutually waive ATM usage fees for their customers. It is not an interbank network but uses the pre-existing German ATM or Maestro/Cirrus networks. With more than 2500 ATMs, the cooperating banks' ATM...
.
Background
Most banks in Germany, while connected through the girocardGirocard
Girocard is an interbank network and debit card service connecting virtually all German ATMs and banks. It is based on standards and agreements developed by Central Credit Committee....
network, charge ATM usage fees for customers of other banks.
Prior to 1998, the charge was fixed to 4,00 DM (2,05 €) or 1%, whichever was higher. However, this agreement was terminated by the Sparkassen (public banks), who jointly operate the largest German ATM network, arguing that the cost of operating ATMs was unfairly laid on them when virtual bank
Virtual bank
A direct bank is a bank without any branch network. It offers its financial services by:* Telephone banking* Online banking* Automated teller machines * Mail banking* Mobile banking...
s entered the market.
As a consequence, banks now had to deal with different ATM usage charges from other banks but were legally required to make definite quotes to their customers. Most of them simply charged their customers with the estimated maximum fee and pocketed the difference, which dramatically raised the ATM fees for banking customers.
Finally, in 1998, the five large German private banks formed Cash Group to counter the bad press resulting from the increase in ATM fees, waiving ATM usage fees within the Group and thus for customers of the Group's member banks.
After its formation, other German banks tried to become members of Cash Group but no other bank was accepted by the exsiting members, except new subsidiaries of the so called big five. Therefore, in 2000, several smaller German banks founded CashPool as an answer to Cash Group. Today, CashPool is Cash Groups primary competitor in Germany. However, with more than 2,500 ATMs, and 29 member institutions it is significantly smaller. Norisbank GmbH, one of the current members of Cash Group, originally was a member of CashPool. It left CashPool and became a member of Cash Group after its acquisition by Deutsche Bank in 2006.
The five largest German private banks
- Deutsche BankDeutsche BankDeutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
, Frankfurt am Main - CommerzbankCommerzbankCommerzbank AG is the second-largest bank in Germany, after Deutsche Bank, headquartered in Frankfurt am Main.-Activities:Commerzbank is mainly active in commercial bank, retail banking and mortgaging. It suffered reversals in investment banking in early 2000s and scaled back its Securities unit...
, Frankfurt am Main - Dresdner BankDresdner BankDresdner Bank AG was one of Germany's largest banking corporations and was based in Frankfurt. It was acquired by competitor Commerzbank in December 2009.- 19th century :...
(acquired by CommerzbankCommerzbankCommerzbank AG is the second-largest bank in Germany, after Deutsche Bank, headquartered in Frankfurt am Main.-Activities:Commerzbank is mainly active in commercial bank, retail banking and mortgaging. It suffered reversals in investment banking in early 2000s and scaled back its Securities unit...
) - HypoVereinsbankHypoVereinsbankUniCredit Bank Aktiengesellschaft is the sixth-largest private German financial institution, with a strong presence in Bavaria. The company is based in Munich, and together with Deutsche Bank, Dresdner Bank, Commerzbank and Deutsche Postbank, it belongs to the Cash Group...
, MunichMunichMunich The city's motto is "" . Before 2006, it was "Weltstadt mit Herz" . Its native name, , is derived from the Old High German Munichen, meaning "by the monks' place". The city's name derives from the monks of the Benedictine order who founded the city; hence the monk depicted on the city's coat... - Deutsche PostbankDeutsche PostbankDeutsche Postbank AG is a German retail bank with headquarters in Bonn. Postbank was formed from the demerger of the postal savings division of Deutsche Bundespost in 1990. It became a wholly owned subsidiary of Deutsche Post in 1999, and was partially spun out on the Frankfurt Stock Exchange in 2004...
, BonnBonnBonn is the 19th largest city in Germany. Located in the Cologne/Bonn Region, about 25 kilometres south of Cologne on the river Rhine in the State of North Rhine-Westphalia, it was the capital of West Germany from 1949 to 1990 and the official seat of government of united Germany from 1990 to 1999....
Their Subsidiaries
- Bankhaus Neelmeyer AGAktiengesellschaftAktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e. owned by shareholders, and may be traded on a stock market. The term is used in Germany, Austria and Switzerland...
, BremenBremenThe City Municipality of Bremen is a Hanseatic city in northwestern Germany. A commercial and industrial city with a major port on the river Weser, Bremen is part of the Bremen-Oldenburg metropolitan area . Bremen is the second most populous city in North Germany and tenth in Germany.Bremen is... - Bankhaus W. Fortmann & Söhne KGKommanditgesellschaftA Kommanditgesellschaft is the German name for a limited partnership business entity and is used in German, Austrian and some other European legal systems....
, Oldenburg (Oldenburg) - Berliner Bank AG & Co. KG, BerlinBerlinBerlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
- Comdirect bank AG, QuickbornQuickbornQuickborn is a town in the district of Pinneberg, in Schleswig-Holstein, Germany. It is situated approx. 17 km east of Elmshorn, and 20 km north of Hamburg.-International relations:Quickborn is twinned with:* Boxholm, Sweden...
- DAB Bank AG, Munich
- Deutsche Bank Privat- und Geschäftskunden AG, Frankfurt am Main
- Norisbank GmbH, Frankfurt am Main
- Münsterländische Bank Thie & Co. KG, Münster
- Oldenburgische Landesbank AG, Oldenburg (Oldenburg)
- Bankhaus Reuschel & Co. KG, Munich