Deutsche Bank launches technology division

Deutsche Bank is going through a strategic shift

Deutsche Bank is creating a division for technology in order to transform systems, reduce complexity and lower costs, according to an employee note.

The note, which was seen by Reuters on Monday, informed its employees of the strategic shift towards a higher focus on technology, and revealed that the central technology division will be led by Bernd Leukert, who will oversee tech security, data and innovation functions.

The note read: “We have a bank-wide commitment to strengthen engineering expertise in the bank by increasing the share of expert internal technology staff.”

“At its heart, our technology strategy empowers our businesses to control ‘what’ is produced, while technology has control of the ‘how’. In the past, the ‘how’ offered too much optionality and did not consistently follow group-wide architecture and tooling.”

Deutsche Bank’s systems have long been problematic and they have been blamed for the lender’s slow progress, as well as its inability to control costs and keep up with fintech innovation, according to the news agency.

However, the move would not happen overnight, and it will continue to invest in and run on the current legacy systems for a while, before moving to a cloud-based solution.

The transition comes after Deutsche Bank established a board-level Technology, Data and Innovation Committee in May, which plans on investing €13bn in technology by 2022.

Sunniva Kolostyak
by Sunniva Kolostyak
FinTech Reporter at IBS Intelligence
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