Deutsche Bank’s fintech strategy

By July 6, 2016Bitcoin Business

Juergen Fitschen, co-CEO of Deutsche Bank, addresses the bank’s annual general meeting in Frankfurt, Germany, May 21, 2015. This story was delivered to BI Intelligence " Fintech Briefing " subscribers. To learn more and subscribe, please click here .

Markus Pertlwieser, the German banking giant’s Chief Digital Officer (CDO), explained the bank’s fintech strategy in an interview with BI Germany this week .

The strategy is part of the bank’s larger plan to reorganize its commercial and private banking businesses in its home market. The plan includes investing €750 million ($570 million) in digital products and advisory services by 2020. Fintech companies are potential partners, not threats. Pertlwieser believes the majority of fintechs are now focused on B2B solutions, and therefore views them as potential partners. This notion is reflected in the bank’s platform strategy — which involves allowing third-party fintechs to connect to the bank’s systems. The goal is to provide customers with innovative new services through such partnerships. We’ve also seen this strategy adopted by Spanish banking giant BBVA, which launched an Open API platform in February 2016. That platform enables third parties to provide auxiliary services that leverage BBVA customers’ account and card data.

Insurtech is an opportunity. Insurtech is an area of fintech that uses technology to innovate and disrupt the legacy insurance industry. Pertlwieser believes insurtech will be particularly important to the relationship between the bank and insurance providers. Deutsche Bank sells insurance on behalf of its partners, and Pertlwieser may see insurtech as a way to improve the insurance distribution model. Insurtech started to take off this year, with f unding for firms nearly quadrupling year-over-year (YoY) in Q1 2016.

Deutsche Bank already has a partnership with a robo-advisor. Pertlwieser believes robo-advisors will improve advice for customers who don’t use a human […]

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