FRANKFURT (Reuters) – Deutsche Bank’s (DBKGn.DE is the creation of a new technology and business division, in a strategy shift, has been designed in order to reduce complexity, and lower cost, as in the transformation of the systems, which are kept in the bank for a year.
FILE PHOTO: The logo of Deutsche Bank is pictured in London, Britain, July 8, 2019. (REUTERS photo/Simon Dawson/File Photo
The German lender’s outdated IT systems are to blame for the bank’s failure to control the cost and the slow rate of progress to keep up with the wave of fintech innovation in the industry.
The technology has long been a problem for the Bank. A former Chief Executive John Cryan complained of in 2015, is about “bad systems” and a “very slow process” and that the former chief of operations, Kim Hammonds, last year, the Deutsche as an “extremely complex” and the “most dysfunctional” workplace in which they are known.
The central technology division, announced on Monday, will be headed by Bernd Leukert, to the supervision of technology security, information, and innovation, features, among other things, the bank said in a note to employees seen by Reuters.
“In the heart of our technology strategy, our businesses, and to control what is produced, while the technology is in control of the “how to”. In the past, the “how”, and offered too many options to choose from, and have not been consistently following the group-wide architecture and it tools,” he said.
The lender will also have a board-level Technology, and Innovation Committee in May, has vowed to invest 13 billion euros ($14.2 billion) in the technology by 2022.
They will have to do this in a technology arms race within the banking industry. Research from UBS this year, it turned out that jp morgan’s (JPM.(N) estimated $11.4 billion on the technology in 2019 alone.
In his note to staff, the Bank also said that it will move systems to the cloud, it would not happen overnight, which means that it would continue to invest heavily in the infrastructure on which it operates today.
However, the building will continue to reduce the number of applications, and the barriers to the technology’s functions.
“We have to have a bank-wide efforts to strengthen the technical expertise within the bank, due to the increase in the share of skilled in-house it staff,” he said.
(This story has been filled in to show how the memo was published on Monday, not on wed.)
Reporting by Patricia Uhlig; Writing by Arno Schuetze; Editing by David Goodman