A big bank moves to the small towns

Deutsche Bank, which up till now has been present only in Poland's 39 largest cities, has begun to establish outlets in smaller towns. Starting this month, clients in 22 locations can take out loans in Deutsche Bank outlets established under the brand DB Kredyt. The network is to expand to 60 outlets by June.

"We made this decision because this segment in smaller towns is developing and it will continue to do so," said Deutsche Bank spokesperson Sabina Salamon.

Deutsche Bank is not a pioneer in this field, as for some time the bank's competitors have been opening outlets in smaller cities. Some larger banks such as BPH or PKO BP have been present in these areas for quite some time, while others such as Fortis Bank have established new brands designed for this market. Also in rural areas, a large number of SKOK banks can be found, along with a few thousand credit agents and companies offering loans from various banks.

"There is a trend in banking to go into smaller towns. Banks have seen that there is a huge growth in demand for consumer loans, caused by the increase in salaries and decrease in unemployment. People who cannot afford to buy with cash are more and more often taking loans," said Zbigniew Bakota from Ernst&Young.

Despite the fact that more and more companies are offering loans for people with smaller incomes, these loans still often prove very expensive.

"It will take a while before bank loans become cheaper. We have not reached product saturation in the market yet. Not until we see a huge amount of competition might we expect a decrease in loan costs," said Bakota.