Deutsche Bank’s treasury systems set for reform

By Rebekah Tunstead | 30 August 2019

Plans to revamp Deutsche Bank’s treasury management systems are currently under review, according to a Deutsche Bank spokesperson.

According to an internal bank memo, proposed changes to the treasury unit are to rationalise an overlap of banking activities and reduce the bank’s leadership.

“These changes will make us both more effective and more efficient, reduce complexity, remove overlaps with activities in other parts of the bank, and enable us to improve decision-making through a more streamlined leadership structure,” the memo read.

On August 27, the bank announced a restructuring of its treasury department, with its market-facing and investment activities being amalgamated into a single team.

Dixit Joshi, the bank’s group treasurer told the FT that the combination of the treasury units was necessary as it was “better to have just one person in charge.”

A change to the bank’s treasury management systems was inevitable, according to John Byrne, chief executive officer at Salmon Software.

“Many banks, over the years, had internal development teams who developed their own internal systems, in many cases using, what would now be considered older development techniques and running on environments that are now obsolete. They have been modified and patched over many years and have become increasingly unfit for purpose,” says Byrne.   

The renovation to the bank’s treasury unit comes after the bank announced a restructuring plan in July, with €13bn being dedicated to technology by 2022. As part of the transformation, François Jourdain will be appointed head of treasury markets and investments, and will report to Dixit Joshi, the bank’s group treasurer.

Changes to the treasury division had been approved by regulators after enhancements to its data controls, models, and governance, Joshi told the FT.

“This reorganisation enables us to become more effective and efficient as we work to deliver on Deutsche Bank’s recently-announced transformation strategy. Balance sheet efficiency is a core element of our strategic agenda and Treasury plays a significant role in this,” said Joshi, in the press statement.

Given difficult market conditions among banks recently those that may not have utilised technology are now turning to it for efficiency and resource gains, according to Byrne.

“While banks have been willing in many cases to invest in technology, the recent crisis in banking has meant that budgets have not been available to enhance their technology,” he says. “Deutsche Bank hasn’t been immune from these effects, hence the recent announcement of a significant technology overhaul.”

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development