Deutsche Bank takes stake in Eurogiro
20 January 2010 | 7991 views | 0
Deutsche Bank's global transaction banking unit has agreed to take an eight per cent equity stake in cross-border payments outfit Eurogiro. Financial terms of the deal were not disclosed.
Eurogiro is the world's second largest network for cross-border payments, with a focus on connecting postal organisations, post banks and other financial institutions.
Deutsche Bank has been working with Eurogiro for over 10 years and is an acting member on its board. In addition, the bank provides Eurogiro's members with US settlement services, which are currently being expanded to include multi-currency. For its part, Eurogiro provides Deutsche Bank with access to its global network of postal banks and organisations.
The investment deal will see Eurogiro gain access to support from a Tier 1 transaction bank while also ensuring financial flexibility to keep abreast with the latest developments in the payments market, say the companies.
Deutsche Bank, in turn, will combine its market position in payments and cash management with Eurogiro's retail distribution power through the global postal network with a reach of over two billion individuals worldwide.
Paul Camp, head, cash management financial institutions, Deutsche Bank says: "Becoming a shareholder in Eurogiro perfectly supports our Global Remittance initiative. Clients will benefit from our existing product capabilities enhanced with the Eurogiro reach and functionality such as SMS advising. With minimal investment, our global clients can earn additional revenues as well as attract and retain customers with a new and improved remittance offering."