Deutsche Bank has said it has agreed a strategic, multi-year partnership with Google to give the German lender access to cloud services and drive innovation in technology-based financial products for clients.
- Google and Deutsche Bank agree a multi-year strategic partnership
- The partnership gives the Bank access to cloud-based products
- Deutsche Bank expect the partnership to yield over $1 billion in EBIT over the next decade
Earlier this year, Deutsche invited bids from Google, Microsoft and Amazon to overhaul the bank’s outdated and fragmented technology networks.
The deal is part of a 13 billion euro (approximately $14.70 billion) technology investment Deutsche has planned up to 2022 as it restructures to recover from years of losses.
Google and Deutsche Bank have now signed a letter of intent and plan to sign a multi-year contract within the next few months, the bank said.
A source familiar with the matter told journalists at the news agency Reuters that Deutsche Bank expects the partnership to generate more than 1 billion euros (approximately $1.13 billion) in accumulated earnings before income and tax (EBIT) over the next ten years.
“The partnership with Google Cloud will be an important driver of our strategic transformation,” said Deutsche Bank CEO Christian Sewing.
“It demonstrates our determination to invest in our technology as our future is strongly linked to successful digitisation. It is as much a revenue story as it is about costs.”
Amazon and Microsoft didn’t immediately respond to requests for comment.
Via our content partners at Reuters. Reporting by Hans Seidenstuecker and Tom Sims. Writing by Caroline Copley. Editing by Michelle Martin and Edward Taylor.