UK bank Barclays has formed a strategic partnership with Deutsche Bank that will enable its larger corporate customers to use the German bank's cross-border cash management services in continental Europe.
Under the contract, Barclay's corporate customers will be able to use Deutsche Bank's services for account management, domestic and international payments and collections, liquidity management and electronic banking, which will be supported by customer services and streamlined documentation processes.
Peter Harvey, MD of larger business at Barclays, says: "Making use of its (Deutsche Bank's) infrastructure and expertise enables us to provide the integrated cross-border service that many large corporations require today."
Norbert Wanninger, head of global cash management at Deutsche Bank, says the deal creates a win-win-win situation for Barclays' customers and both partners: "While the corporates have access to a first-class cash management platform, Barclays will strengthen its prime relationships in the local market with a fully-fledged product range. Deutsche Bank will benefit from increased transaction volume that allows us to operate a profitable cash management franchise."
While servicing Barclays' UK-based corporate customers, Wanninger says Deutsche will continue to provide its generic cash management services to its target market of top-tier corporates in the UK.
Both banks claim the deal to be the first of its kind in the European cash management marketplace. Deutsche says other banks are expected to follow Barclays' lead, as cost pressures and an increasing regulatory burden drive industry consolidation.