Deutsche declined to comment on how much it was investing on upgrade of its IT systems
To simplify its (information technology) IT systems, Deutsche Bank has tapped Oracle, which would enable Germany’s top lender to cut costs by several hundred million euros, said a Deutsche Bank board member.
Deutsche Bank has spent years modernising its computer IT systems that have repeatedly caused headaches and which former CEO John Cryan had publicly called “lousy”.
Promising smooth operation and regular updates, Oracle is planning to transfer platforms of some of Deutsche Bank’s core functions such as payments, trading and risk management to one system, the two groups said on Thursday. “We want to reduce the complexity of our technology estate”, said Bernd Leukert Chief Technology Officer at Deutsche Bank, who joined from SAP in 2019 and has since been reorganising the bank’s IT systems.
“The goal is to run the bank with around one third of the applications we have today”, he told Reuters.
The migration, which should help lower Deutsche Bank’s total annual costs to 16.7 billion by 2022 from the 19.5 billion in 2020, is expected to take 3-5 years. Deutsche declined to comment on how much it was investing on upgrade of its IT systems.
Deutsche already uses technology from Google and will continue to work with SAP technology for less critical applications. Ensuring better protection of data than if a public cloud is uses, Oracle is setting up a private cloud for Deutsche Bank. Oracle has created clouds for others but the Deutsche cloud will be its largest to date, said Juan Loaiza, manager at Oracle.