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Deutsche Bank taps US tech companies for makeover

FRANKFURT: Deutsche Financial institution has invited bids from Microsoft, Google and Amazon to overtake the German financial institution’s outdated and fragmented know-how networks, folks with data of the matter mentioned.

The financial institution’s method to the US tech firms, which has not been beforehand reported, is a part of a €13bil (RM58.68bil) know-how funding Deutsche has deliberate as much as 2022 because it restructures to get well from years of losses.

Bernd Leukert, who lately joined Deutsche’s board as chief know-how officer from software program group SAP, is overseeing the initiative.

Deutsche Financial institution mentioned in a press release: “To assist us consider our choices, now we have began a young course of with a number of cloud suppliers… we anticipate to have the ability to full the method within the coming months.”

Microsoft and Google declined to remark. Amazon didn’t reply to a request for remark.

Know-how is a problem for all international banks, however Deutsche Financial institution has notably struggled to harmonise its networks within the many years after a speedy international growth that included the acquisition of Morgan Grenfell in London and Bankers Belief in the US.

Even a few of the financial institution’s most elementary processes are outdated. Some retail prospects nonetheless get their balances entered into financial savings books by printers for which spare elements are not manufactured.

The three US tech teams arrange store on web site at Deutsche Financial institution in Frankfurt final week to give you proposals to repair know-how and companion on initiatives throughout the financial institution, two of the folks mentioned.

That may begin a three-month pitch and bidding course of following talks earlier this yr between Leukert and tech executives in the US and in Davos.

The financial institution’s supervisory board lately signed off on plans for a broad tech overhaul.

In an October memo to workers, 4 executives, together with Leukert and Deutsche Financial institution Chief Govt Christian Stitching, highlighted the precedence.

“To succeed, we have to basically shift how we construct know-how and transfer to a brand new approach of working,” they wrote.

Along with serving to to streamline and replace know-how, one concept into consideration is to arrange a company credit score market that Deutsche and the know-how firm would personal, one of many folks mentioned. It could be open to firms and different banks as a brokerage for loans.

Within the revamp, Deutsche is searching for a partnership that will be larger in scope than work the tech firms have achieved for different banks up to now, one of many folks with data of the matter mentioned.

However Deutsche isn’t concerned with a three way partnership as a result of it might end in overheads, boards and forms, the particular person mentioned. – Reuters

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