Banks like Volksbanken Raiffeisenbanken are a bit different from what we know about Americans banks, so profits are important but not that important.
Banks only exist because of profits and control of money, so it sounds a bit suspicious they would allow customers to own bitcoin on their own wallets.
I am thinking how they are planning to make their own centralized wallets, something like it was done in El Salvador with Chivo wallet, but that is just my speculation.
I also doubt bank would allow anyone to hold Bitcoin without revealing kyc customer information, maybe even worse than some centralized exchanges are doing now.
They don't want to custody the bitcoin of their customers to avoid the german cryptocurrency regulations. So they won't ask additional KYC procedures for these services according to what they claim in the article
Because the customer manages his private key himself, we have no way of accessing his Bitcoin, and so we do not store it. So we don't fall under the crypto custody business either. With our offer, we concentrate on educating our customers about Bitcoin and supporting them in choosing and setting up their Bitcoin wallet. The fact that we don't need a BaFin license makes a lot of things easier. The introduction of such an offer is still complicated, if only because of the money laundering regulations. We obtained legal and technical advice from the Bavarian Cooperative Association. It was important to us to include the GVB because we are also breaking new ground with our service.