Deutsche Bank is planning to initiate three technology innovation labs in Berlin, London and California this year. It targets to develop the financial related technology companies that are shortly called as ‘fintech’ companies, to help bridge the gap in the banking sectors and its clients.
Germany’s largest lender want to make use of its own technology infrastructure and get the three operations up and running before the start of the next year, said the sources. The bank is expecting to screen application of around 500 fintech startups each year, who are working to develop security, payments, efficiency, organization or process application.
Deutsche Bank’s rivals Swiss bank UBS and Commerzbank started initiative like this few months ago to boost tech developments that will help in the betterment of the functioning of the bank. American Express launched a tech incubator in Palo Alto, California to target on cloud computing and mobile infrastructure.
Until now the bank does not seem to have set aside any specific amount of money to invest in the fintech firms instead it intend to collaborate or create partnerships with the selected startups. Through the relationship, it plans to use the technology itself, fostering development or directing it to the clients or other financial sector that needs it.
Sources close to the banks say the bank want to partner and work with startups, provide them with suggestion on their ideas and look at ways to improve and employ their technology and not just to be advantageous on the financial perspective alone. “This is primarily about innovation, not investments,” said the source.
The launch of these tech labs come just few weeks after the appointment of the board member Henry Ritchotte as chief digital officer. This launch is a bigger commitment to developing a field where the banking sector has some downfalls in tech advancements because of the financial crisis.