Post-Pandemic Digital Progress Stalls in Germany

The acceleration of digital transformation in Germany, which surged during the COVID-19 pandemic, has now considerably slowed, according to a recent study conducted by the networking equipment provider Cisco. Five years after the onset of the pandemic, the report reveals that many of the initial advancements have failed to sustain momentum.

Uwe Peter, the head of Cisco Germany, noted that while there are areas of significant progress, such as the expansion of high-speed gigabit internet connections--now available to nearly 75% of households--other domains show signs of stagnation. He referred to this phenomenon as a 'digital fatigue.'

For instance, the percentage of employees working remotely nearly doubled from 2019 to 2021, rising from 13% to 25%. However, this figure has since declined, with only 23% of workers currently engaged in telecommuting. Additionally, the use of online government services, which saw a spike in 2020, has plateaued.

Despite the widespread availability of gigabit internet connections, the actual adoption rate remains low, with only one in nine households opting to connect. It remains unclear whether this reluctance stems from convenience, cost issues, or a lack of awareness about the benefits of high-speed internet.

For their study, Cisco analyzed data from various sources, including statistical offices and industry associations. They also commissioned a representative survey through YouGov, which involved 2,000 participants across Germany. The findings revealed that only 41% of respondents perceived an improvement in digital services compared to 2019, while 39% noticed no change, and 11% felt the situation had worsened.

One notable decline was observed in the utilization of video consultations with physicians, with two-thirds of respondents indicating they have never used this service. Conversely, about a third reported increased usage of digital administrative offerings compared to five years ago, though over 20% still have never accessed these services.

Experts attribute this lack of growth partly to persistent issues with user-friendliness and the limited range of government services available online. Many citizens continue to prefer traditional methods, such as visiting the local authority to obtain their identification documents.

However, a notable shift has occurred in the realm of payment methods. The study indicated that 41% of participants are now more likely to opt for contactless payment options, with only 11% having never tried it. Furthermore, the uptake of online banking has surged to 84%, a significant increase from 52% five years ago.

Peter emphasized that in areas where digital solutions provide tangible benefits, adoption is high. The preference for cash transactions has also diminished, with its share of all payments dropping from 84% to 51% since 2019, likely due to increased acceptance of card payments in retail environments.