Germany’s Deutsche Bank has announced its plan to develop a technology innovation division to drive its digital transformation. The new technology division will be called Technology, Data, and Innovation.
According to Bernd Leukert, Deutsche Bank’s recently appointed tech chief, the new technology division will help lower costs and fundamentally shift how the bank builds platforms. He said that Deutsche Bank’s new technology division, which will be more focused on engineering expertise, will strive to reduce administrative overhead and take further ownership of processes that were previously outsourced.
In an internal memo shared with employees, Bernd Leukert said that the new technology division will focus on five main initiatives- agile teams, engineering culture, commitment to strategic initiatives, investment in modernisation and simplification.
Bernd Leukert stressed that the new technology division will be committed to implement the bank’s vision.
Deutsche Bank also announced its plans to overhaul its technology platforms between 2019 and 2022 with an investment of around £12 billion.
Deutsche Bank CEO Christian Sewing told investors that, “The aim is to position the bank as a technology company, be a leader in digital banking with new ideas, and establish systematic research and development for innovations through combining state-of-the-art technology with analyst know-how.”
He added, “Digitisation offers new competitors, such as cross-industry entrants or financial technology companies, market entry opportunities,” said Sewing. “We thereby expect our businesses to have an increased need for investment in digital product and process resources to mitigate the risk of a potential loss of market share.”
According to reports, Deutsche Bank will cut 18,000 positions globally and half of them in Germany. Currently, the bank employs 41,500 people in Germany, and 91,700 worldwide.