Deutsche Bank has invited bids from Microsoft, Google and Amazon to overhaul the German bank’s outdated and fragmented technology networks, people with knowledge of the matter said, according to Reuters.
The bank’s approach to the U.S. tech companies, which has not been previously reported, is part of a 13 billion euro ($14.20 billion) technology investment Deutsche has planned up to 2022 as it restructures to recover from years of losses.
Bernd Leukert, who recently joined Deutsche’s board as chief technology officer from software group SAP, is overseeing the initiative.
Deutsche Bank said in a statement: “To help us evaluate our options, we have started a tender process with several cloud providers … we expect to be able to complete the process in the coming months.”
The three U.S. tech groups set up shop on site at Deutsche Bank in Frankfurt last week to come up with proposals to fix technology and partner on projects across the bank, two of the people said.
That will start a three-month pitch and bidding process following talks earlier this year between Leukert and tech executives in the United States and in Davos.
The bank’s supervisory board recently signed off on plans for a broad tech overhaul.
In an October memo to employees, four executives, including Leukert and Deutsche Bank Chief Executive Christian Sewing, highlighted the priority.
“To succeed, we need to fundamentally shift how we build technology and move to a new way of working,” they wrote.
In addition to helping to streamline and update technology, one idea under consideration is to set up a corporate credit marketplace that Deutsche and the technology company would own, one of the people said. It would be open to companies and other banks as a brokerage for loans.
„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”