Product Innovation for Financial Institutions (FI)

Examples of product innovation include enhancements to its leading cross-currency solution FX4Cash which allows clients to send and receive payments in more than 120 currencies via one base account. The latest enhancement, Smart Convert, is designed to handle FI clients' cross-currency commercial MT103 payment transactions with automated "smart conversion" capabilities. With Smart Convert, financial institutions can control the rates provided to the ultimate beneficiary, manage and direct how the service is rolled out and grow their revenues through increased market- and wallet-share.

Deutsche Bank is also launching an SMS advising service for remittance payments. By the end of 2009 in select remittance corridors and by 2010 for all payment corridors, Deutsche Bank will be able to advise per SMS the beneficiary of awaiting funds in their local language. The ultimate beneficiaries will receive a convenient notification on their mobile as to how much they are receiving and where they can claim funds.

In addition, Deutsche Bank is extending its range of services corresponding to the needs of banks' treasury, nostro funding and intraday cash management units. Effective management of intraday cash flows on nostro accounts is vital to FIs, especially in times of increased liquidity costs. With its new Treasurer Services, Deutsche Bank is extending its internet based portal, db direct internet, via a single monitoring screen, to offer real time balances, pending transaction queues and immediate in-house funding transfer initiation. The new service helps treasurers better manage their payment and receipt volumes channeled via nostro accounts with Deutsche Bank.

A further addition to db direct internet is Virtual Accounts. In partnership with IBM, the Bank has launched this new platform that enables financial institutions and corporate clients to manage even the largest portfolios of virtual accvirtual accounts with unprecedented ease via the internet.

Another example of product innovation includes the extension of the Bank's check product offering with the launch of its new onsite printing solution. Deutsche Bank will combine the traditional check issuance service with innovative internet technology to enable FI clients to print Deutsche Bank checks directly at the clients' own counters.

Market Innovation Initiatives

As well as product innovation, Deutsche Bank is introducing market-specific innovation initiatives. Asia Gateway, for example, addresses challenges faced by banks when making Euro and USD payments to beneficiaries in the Asia due to differing time zones, languages, and lack of in-country coverage. Deutsche Bank's Asia Gateway offering is used globally by banks around the world to facilitate their payment flows into Asia. Key to this initiative are the following integrated cash management solutions:

• Very Early Processing (VEP) - VEP provides for payment orders to be released to beneficiary banks in Asia whenever required during their business day regardless of time-zone differences.
• Direct Customer Transfer (DCT) - DCT eliminates the need for cover payments, allowing
  clients to save on messaging and reconciliation costs.
• Future Advising - With Future Advising, the beneficiary bank can be pre-advised via MT 103 up to two business days prior to value date of the payment ensuring prompt release of funds to the beneficiary.

A further example of market innovation initiatives is the Bank's Remittance Corridor Solution between Russia and China. To accommodate the large Chinese population earning their living in Russia, Deutsche Bank offers an expedient, cost effective, and transparent remittance corridor solution to facilitate remittance payments into China.

Commenting on Deutsche Bank's product innovation, Christian Westerhaus, Head of Product Management Financial Institutions, said, "Our cash management products are ultimately designed to make our FI clients successful in their markets. ‘Innovation' at Deutsche Bank
means innovation that drives client success."

Paul Camp Global Head of Cash Management Financial Institutions (CMFI) at Deutsche Bank adds, "Our clients see the value of our continued investment in innovation. The solutions that we bring to market are all designed to enable our clients' success. Whether the client is looking to increase revenue, reduce costs, or mitigate risk, Deutsche Bank is their proven partner in achieving those objectives."