They were given a helping hand by liberalisation and the technological advances of the internet in the 1990s; this gave foreign banks a fast and low-cost channel for communicating with customers. And they seized their chance. Some foreign banks therefore set up shop as online banks to conduct deposit business but also to engage in business with standardised consumer loans.
For retail customers this translated directly into a larger product range at lower prices. That is good both for customers and for competition. Providing advice and expertise to enterprises is a key investment banking service, and one from which German firms have benefited. That requires putting down roots in the real economy and offering a real service.