Banks In Austria | Overview And Guide To Top 11 Banks In Austria

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What Are Banks In Austria?

Since Austria is one of the wealthiest countries in the Euro area, it is expected that its banking system has been doing incredibly well. Let us look at two specific indicators that prove Austria’s banking system strong.

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The returns on assets for Austrian banking system for the last six quarters till the first quarter of 2017 are 0.6%, 0.5%, 0.6%, 0.6%, 0.6%, and 0.7% (first quarter, 2017) respectively. And, along with that the cost to income ratios for the last six quarters till the first quarter of 2017 are 62.8%, 72.7%, 72%, 71.2%, 74.5%, and 70% (first quarter, 2017) respectively.

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Banks In Austria Explained

The banks in Austria play a very important role in shaping the economic and financial system of the country. It ensures the best level of financial stability and transparency. In helps in providing the best possible service related to banking and investments to both individuals and businesses.

The banking system Austria is very strong and well regulated and consists if a three-tire structure as detailed below. Each bank in the system serve innumerable purposes and cater to different type of customer needs.

In this article, we will get an overview of the top 10 banks operating in the economy, consisting of specialized banks, small financial institutions and even international ones which are well regulated and supervised. This ensures financial stability along with complete compliance with the financial regulations.

Structure

One of the most noteworthy things about Austria’s banking system is the structure of Austrian banks. The best banks in Austria have been sorted into trade associations for historical reasons but organized as per the sectors.

  1. Single-tier: Joint-stock banks, specialized credit institutions, mortgage banks, and housing construction banks are single-tier.
  2. Two-tier: Volksbanken and savings banks are two-tier. They mainly serve the local community. Each province of Austria has its own regional savings bank. The Volksbanken are cooperative banks that operate locally with a joint ownership structure. Not only local communities, they also help individuals and small businesses.
  3. Three-tier: Only Raiffeisen banks are three-tier.

Digital Banking In Austria

Austria's digital banking landscape is characterized by established banks adopting digital services, providing secure and convenient banking experiences for customers. It is gradually adapting to the evolving financial technology landscape. Established banks are making strides in embracing digital transformation by offering online banking services and mobile apps for customer convenience.

While the fintech sector is emerging, it is relatively smaller compared to other European countries. Austria's regulatory environment plays a crucial role in encouraging innovation and collaboration between traditional financial institutions and emerging digital players. The future holds potential for further advancements and growth in the digital banking sector in Austria.

Top 11 Banks in Austria

Here is the list of the top 11 Austrian banks which are considered the best banks in Austria as per the total assets. Note that the list is updated as per the data for 2019:

#1. Revolut:

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#2.  Erste Group Bank:

Among the list of banks in Austria, the first is Erste Group Bank. This bank is the topmost bank in Austria as per the total assets owned, i.e., €245.7 billion. Erste Group Bank is one of the oldest banks in Austria. It was founded in the year 1819. This bank has employed over 47,284 employees and served over 15.7 million clients around the globe. Erste Group Bank also has a global presence in 7 countries globally. They are also the largest service providers in Eastern and Central Europe. Their current market capitalization is €15.68 billion. Thus, it is one of the largest banks in Austria.

#3. Raiffeisen Zentralbank (RZB Group):

This bank takes the second position in the overall rating as the top bank per the total asset owned. RZB Group’s total assets are €152.2 billion. RZB Group is the second-largest bank in Austria. It was founded in 1927 in Vienna. It has 47,000 employees, serving 16 million clients worldwide. Their expertise is in asset management, mergers & acquisitions, and leasing, which makes it one of the largest investment banks in Austria.

#4. UniCredit Bank Austria AG:

This bank takes the third position in the overall rating as the top bank among the list of banks in Austria per the total asset owned. UniCredit Bank Austria AG’s total assets are €101.66 billion. It was founded in 1991 and came under UniCredit in 2005. It has 7,700 employees working for them, and they serve its customers in over 162 branches. Their headquarters are in Vienna. This bank has a global reach in many countries, including Bulgaria, Croatia, the Czech Republic, Hungary, Bosnia, Russia, Serbia, Turkey, etc.

#5. BAWAG P.S.K.:

This bank has taken the fourth position among the largest banks in Austria as per the total assets owned. BAWAG P.S.K.’s total assets are €45.66 billion. It was founded in 1922, and the headquarters are in Vienna. They have employed 1,200 employees, and they have been serving 2.3 million customers for almost 130 years. BAWAG Group is one of Austria’s largest banks. It has been operating in Austria, Germany, France, the United Kingdom, and the United States.

#6. Raiffeisenlandesbank Oberosterreich:

This bank is the fifth-largest bank in Austria per the total assets. Oberosterreich's total assets are €37.2 billion. It has 17 branches that assist many small and medium-sized enterprises. In addition, this bank has been serving over 80,000 private customers. This bank specializes in corporate banking, retail banking, private banking, and investor relations. Thus, it is one of the largest investment banks in Austria.

#7. Osterreichische Kontrollbank AG:

This bank stands in the sixth position as per the total assets owned. The total assets held by this bank are €33,352 billion. It was founded in 1946. The headquarters of this bank is in Vienna. Osterreichische Kontrollbank AG specializes in capital market services and export services. This special-purpose bank is specifically built for export services and international matters. Around 505 employees work in this bank.

#8. Raiffeisenlandesbank Niederoesterreich-Wien AG:

This bank stands at number seven as per the total assets owned by banks in Austria. The total assets held by this bank are €28 billion. This bank is comparatively old. It was founded in 1898. The headquarters of this bank is in Vienna. This bank is one of the biggest commercial banks in Austria. It offers various products like deposits, loans, finance.

#9. Oberbank AG:

This bank has taken the eighth position as per the total assets owned by banks in Austria. Oberbank AG’s total assets are €22,829 billion. It is one of the oldest banks in Austria, founded in 1869. This bank has a presence all over Europe and supports the local customers of Austria, Germany, Hungary, Slovakia, and the Czech Republic. Oberbank AG is very careful about investing. They only invest when there are long-term perspectives and great returns. The bank has employed over 2,155 employees.

#10. HYPO NOE Gruppe:

HYPO NOE Gruppe is in the ninth position in the ranking of banks in Austria as per the total assets owned. The bank’s total assets are € 12267.81 million. It is again another oldest bank in Austria, founded in 1888. The State of Lower Austria fully owned it. The motto of this bank is to ensure closeness to customers and maintain sustainability in its approach. It has 27 branches in Vienna and Lower Austria. This bank specializes in public finance, real estate finance, corporate finance, project finances, and treasury services.

#11. Raiffeisen-Landesbank Steiermark:

This bank stands tenth in the ranking of top banks in Austria as per the total assets owned - €16.5 million. It was founded in 1927 and comprised nine branch offices in Graz and 1 in Frohnleiten. The primary focus of this bank is industrial, corporate, and large-scale customers. The main markets of this bank are in Southern and Eastern Europe. Around 896 employees work here.

Thus, the top ten banks in Austria which are elaborated above with details about their ranks, assets owned and their area of operation.