Deutsche Bank ditches plan for digital bank

Germany's Deutsche Bank has scrapped plans to set up a digital banking service in the US, says co-chief executive John Cryan.

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Deutsche Bank ditches plan for digital bank

Editorial

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In October Deutsche said that chief operating officer Henry Ritchotte would move on to a new role in charge of a digital bank.

At the time details were scant, with a statement promising an update on the plans at a later point, but the bank insisted that Ritchotte, who last year also took on the title of chief digital officer, was set to "assume a key role in refocusing" the bank.

Now, in an internal email seen by Reuters, CEO Cryan says the digital bank is off the table because it would have diverted resources from Deutsche's core strategy.

However, having committed EUR1 billion over the next three-to-five years to create "a more digital bank," Cryan says in the memo that "we are determined to implement several ideas generated by Henry and his team in our business divisions".

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Comments: (4)

Gerard Hergenroeder

Gerard Hergenroeder Retired IBMer and Banking Executive at Payments Shark

Creating a digital bank is a mass job. There are so many unknowns, twists and turns along the journey. Deutsche can still create real value in its eventual journey by basically changing its investments criteria -- do not look back, create for the future!

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

To play a little loose with an old saying "It's easy to give up smoking. I've done it so many times", it can't be too difficult to create a digital bank, so many startups have done it, and so have a few global-sized traditional banks (e.g. DBS). I suspect there's more to this announcement than meets the eye.

A Finextra member 

Presumably this is less about setting up a digital bank and more about having a retail presence in the US?

A Finextra member 

Now they can apply digital innovation to optimize operations and re-allocate resources from the mundane to more value added services.

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