Deutsche Bank placed in the hands of Google

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Rosalia SánchezSEGUIRCorresponsal in Berlin Updated: Save Send news by mail electrónicoTu name *

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Has something of a gesture of humility, but above all, bet on the winning horse. is Deutsche Bank , with its more than 150 years of history, but having squandered its stock market value and their prestige, they recognize their own inability to adapt to the digitization of the business model with a leadership strategy of its own and decides to get in the hands of a number one sector.

The German bank has reached an agreement to establish a strategic alliance with Google Cloud , who will lead the transformation of its financial services. Both parties have already signed an agreement of intentions and plan to sign contract of several years duration . It is evident that Deutsche Bank can learn a lot from Google, but also what is the giant digital will build without a doubt, new and potential synergies. Not in vain, Google had already tried to venture into the rainforest of the financial services , that would raise exponentially the capacity of your business. No one knows better than Google, or even ourselves, what it is that we desire or seek. Now, in addition, we offer you the possibility to finance it.

in The past month of February, while the world was falling progressively in the economic crisis-health, Deutsche Bank called various providers of cloud services to submit their proposals to establish a lasting collaboration that will be from now on an essential part of the strategy of the bank. Google has unveiled a project “very satisfactory” whose aim is to accelerate the transition to the cloud from Deutsche Bank , and “to develop the capacities of computer engineering from both companies,” according to the press release of the announcement. As soon as you close the last fringes of an agreement,very possibly after the summer, Deutsche Bank will start with a profound transformation of its it structure with which it hopes to generate a considerable value to their customers .

“The partnership with Google Cloud will be a major driver in our strategic transformation”, has declared the ceo of the German bank, Christian Sewing, “demonstrates our determination to invest in our technology that our future is strongly linked to a scan successful”.

The policy of the bank is aware that survival in the TWENTY-first century requires a paradigm shift , not just doing the same as before, although now through the internet. That’s why Sewing is sure that “the cooperation with Google Cloud is a significant advance in our technology strategy and it will transform the way we produce and provide our services to the customer,” a perspective he shares with Bernd Leukert, director of Technology, Data and Innovation of Deutsche Bank and member of the Board of Directors of the bank.

“for more than 150 years, Deutsche Bank has been a pioneer in the industry, with a strong history of innovation in the financial services sector,” notes for its part, Sundar Pichai, Google ceo and Alphabet, “we are excited about our strategic partnership and the opportunity that the Google Cloud is useful for Deutsche Bank and its clients, as they grow their business and shape the future of the financial services industry”.

Perhaps this agreement will be remembered in the future with the stamp of a turning point for the financial institution. After being a big hit in the Stock market over the past few years , the German giant has managed to change in 2020 trend and record an increases of 17% in the first half. It is in fact almost the only entity in the sector to rise, along with the Italian FinecoBank. After that investor optimism is the transformation plan material in place by Sewing, which involves the departure of some of its businesses of investment banking and a reduction of costs , in addition to having set the goal of profitability on the capital tangible of 8% by 2022, compared to the 0.2 per cent achieved in 2019 in adjusted terms. The only way to meet these demanding objectives is to enter with guarantees in a new know-how that you optimize the possibilities of business thanks to big data.

Deutsche Bank, on the other, has been loss of 43 million euros in the first quarter of 2020 , in contrast to the profit net attributable profit of 97 million posted in the same quarter of the previous year. Has been informed about an increase of their forecasts in a 261% to 506 million euros, and has stated that, during those three months, around 260 million euros in provisions for losses credit were directly related to the pandemic.

The net business in the first quarter amounted to 6.350 million euros, in line with the income of 2019, and the revenue of the corporate area decreased by 1% up to march, remaining at 1,326 million, while investment banking grew 18% to 2.339 million. Your division of private banking revenues of 2%, up to 2.162 billion, and the asset management business declined by 1% to € 519 million. At the end of the first quarter, the ratio of core capital CET1 stood at 12.8% , compared to 13.6% as of the end of 2019 and 240 basis points above the regulatory requirements.