Volksbank giant is created: merger of the banks on Lake Constance decided!

Volksbank giant is created: merger of the banks on Lake Constance decided!

In a decisive step for the banking landscape on Lake Constance and in Upper Swabia, Volksbank Konstanz and Volksbank Bodensee-Oberschwaben have decided to merge. This was decided in two separate representative meetings, with the Volksbank Bodensee-Oberschwaben voting for the merger with a majority of 97.7 percent on July 7, 2025, while the representatives of the Volksbank Konstanz unanimously gave their approval on July 14. The entire process has so far been closed to the public and the press, which raises questions about transparency.

The legal merger of the two banks will take effect retroactively from January 1, 2025 and entry in the cooperative register is expected in October 2025. The new institution, which will operate as Volksbank Bodensee-Oberschwaben, will have an impressive balance sheet total of almost 5 billion euros and employ around 620 people who will serve over 137,000 customers, including around 70,000 members.

Strategic goal and composition of the board

This merger aims to create a viable cooperative bank that is strong enough to survive in the competitive environment of the banking industry. The board of directors of the merged bank will consist of the current board members of both banks, while the supervisory board will be made up of elected members and employees of both institutions. This could help to integrate different corporate cultures and ensure a common strategic direction.

The technical merger, i.e. the merging of the IT systems, is scheduled for March 21, 2026. But before that happens, customers will be informed about the changes on the new bank's homepage, which is an important measure to ensure customer satisfaction and provide information.

Regional developments and the trend towards mergers

Mergers are not just an internal issue for the banks concerned. As studies by Deloitte show, merger activity at regional banks has increased significantly in recent years. This occurred particularly in the context of increasing challenges facing institutions, such as declining returns and rising costs. In the past, the focus was often on cutting costs, whereas now the focus is on improving services and recruiting qualified professionals.

In the last ten years in particular, cooperative banks in Germany have merged more than the savings banks, especially in the federal states of North Rhine-Westphalia and Baden-Württemberg. The challenges of these mergers, such as cultural differences or being taken over by another company, should not be underestimated. As the study highlights, the success of such ventures usually depends on a clear integration strategy and the ability to communicate transparently.

With the merger of Volksbank Konstanz and Volksbank Bodensee-Oberschwaben, a further step has been taken into the future of the banking landscape on Lake Constance. It remains to be seen how this new alliance will develop and what impact it will have on the region. The first positive signals could already be seen in the coming months as banks embark on their new shared path.