The Deutsche Bank is embarking on a significant overhaul of its technology infrastructure, decommissioning over 2,000 legacy IT applications in the past five years, a move intended to dramatically cut costs and streamline operations. According to Bernd Leukert, the bank’s chief technology officer, the streamlining initiative has already yielded substantial savings, with approximately 500 redundant applications eliminated solely within Germany. This is projected to save the bank €270 million this year, rising to roughly €320 million annually by 2026.
The bank’s approach prioritizes a unified IT landscape, adopting a philosophy of resolving each technological hurdle only once and deploying solutions across the entire organization. While this strategy aims for increased efficiency and reduced expenses, it also highlights a stark reality: Deutsche Bank’s technological investment budget lags considerably behind those of its American counterparts, both in the banking sector and among prominent tech corporations.
Leukert acknowledged this disparity, emphasizing that financial resources alone do not guarantee innovation. He pointed to the bank’s strategic partnership with Google as a key factor in maximizing impact and competitiveness, particularly in the areas of artificial intelligence and IT infrastructure modernization. However, this collaboration has also drawn scrutiny regarding the increasing dependence on US technology providers.
Asked about the reliance on American solutions, Leukert justified the bank’s decision, stating a lack of viable European alternatives for numerous crucial technological areas. “There are simply few practicable European solutions for many topics” he stated, implicitly defending the bank’s decision to prioritize American partnerships, a choice that raises concerns about data sovereignty and potential geopolitical risk, particularly given the increasing regulatory pressure to reduce reliance on US tech giants within Europe. Critics argue this reliance could ultimately undermine the bank’s independence and expose it to undue influence from overseas entities.