Deutsche Bank to allocate EUR1 billion to new digital spend

Deutsche Bank to allocate EUR1 billion to new digital spend

Deutsche bank has announced plans to shutter 200 branches and invest an additional EUR1 billion over the next three-to-five years to create "a more digital bank".

As part of a massive cost-cutting programme, the giant German bank is shrinking its securities business and selling Postbank as it looks to deliver annual cost savings of EUR3.5 billion.

The five-year plan calls for a retreat from unprofitable business lines and up to ten of the 70 countries in which it currently operates, while investing for growth through spending on global transaction banking and wealth management operations.

In its retail business, the bank says it will spend EUR400-500 million on digital technologies to develop a "leading advisory-driven, omni-channel proposition for private and commercial clients", while reducing its branch network by up to 200 branches by 2017.

Across all business line, the bank says it will "substantially invest" in digital technologies: "The bank plans to invest up to EUR1 billion additionally over the next three to five years in digitisation to capture new revenue opportunities, for example, through remote advisory channels; realise platform efficiencies through automated or digitised processes; and develop new client propositions."

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