Europe Has Declared War On American Tech Companies
Deutsche Bank announced a tender for Microsoft, Google and Amazon to rebuild the outdated and fragmented technology networks of the German bank.
The bank’s previously unreported appeal to U.S. tech companies is part of a € 13 billion ($ 14.20 billion) tech investment that Deutsche Bank has planned through 2022 as the bank restructures to recover from multi-year losses.
Bernd Leukert, who recently joined Deutsche Bank’s board of directors as CTO from the SAP software group, is overseeing this initiative..
«To evaluate options, we started a tender with several cloud providers … we expect to be able to complete the process in the coming months», – said Deutsche Bank.
Microsoft and Google declined to comment. Amazon did not respond to a request for comment.
Technology is a challenge for all global banks, but Deutsche Bank has been particularly keen to integrate its networks for decades after rapid global expansion, which included the acquisition of Morgan Grenfell in London and Bankers Trust in the United States..
Even some of the bank’s core processes are outdated. Some retail customers still have their passbooks entered in passbooks with printers for which parts are no longer available.
Three technology groups in the United States opened an office in Deutsche Bank in Frankfurt last week to come up with technology adoption proposals and project partnerships across the bank, Reuters sources said..
This will kickstart a three-month bidding and bidding process following talks earlier this year between Lakert and technology executives in the United States and Davos..
The bank’s supervisory board recently signed plans for extensive technical modernization.
In an October memo to employees, four executives, including Leukert and Deutsche Bank CEO Christian Schueing, highlighted the priority of these measures..
«To be successful, we need to fundamentally change the way we build technology and move to a new way of working.», – they wrote.
In addition to helping streamline and update technology, one idea under consideration is the creation of a corporate credit marketplace that will be owned by Deutsche Bank and the technology company. It will be open to companies and other banks on brokerage terms.
During the renovation, Deutsche Bank is looking for partnerships that go beyond the work that tech companies have done for other banks in the past, a source told Reuters..
At the same time, Deutsche Bank is not interested in a joint venture, because it will lead to overhead costs, unnecessary advice and bureaucracy..