Deutsche Bank and Google strike cloud services partnership
German financial group Deutsche Bank and Google Cloud, part of tech giant Alphabet, have tied a strategic partnership with the aim of redefining the bank's digital development and financial services offering. Both parties have signed a letter of intent and plan to sign a multi-year contract within the next few months, a joint statement reads. Google Cloud has been chosen after discussions and due diligence carried out over the past five months with several cloud service providers. Alphabet's subsidiary generated nearly $2.8bn in revenue in Q1'20, up 52% year-on-year, and may board around $10bn for the full year 2020 according to analysts.
Concretly, through the partnership, Deutsche Bank will speed up its cloud transition and transform its IT architecture. It is understood this transformation will be phased. "With this partnership, Deutsche Bank will also gain direct access to world-class data science, artificial intelligence and machine learning to better serve customers. Potential use cases include helping treasury clients with day-to-day tasks such as cash flow forecasting, improved risk analytics, and advanced security solutions to protect clients' accounts. For the private banking business, digital and intuitive solutions will be the focus, to simplify the interactions between customers and employees."
The German group will continue to work closely with its existing technology partners in addition to the partnership with Google Cloud, whose Deutsche Bank chief executive officer Christian Sewing considers "an important driver of our strategic transformation." He added: "It demonstrates our determination to invest in our technology as our future is strongly linked to successful digitization. It is as much a revenue story as it is about costs."