As part of SIBOS’ Views from the Top, Deutsche Bank CEO Christian Sewing urged banks to embrace digitalisation in uncertain economic times.
Sewing said transactional banking will be an increasing area of business for Deutsche Bank.
He noted geopolitical risks have created a difficult economic situation.
“Europe risks losing further ground if we do not embrace digitalisation,” he added.
What does this mean?
Sewing spoke less than 10 weeks after Deutsche Bank announced its “largest restructuring in a whole generation”. This involved a revamped corporate banking division and a renewed focus on transaction banking for both corporate and financial institution funds.
He cited transaction banking as a key area for growth, explaining that the 10 largest transaction banks in the world have continued to grow in the first six months of 2019.
Sewing moved on to mention the geopolitical risks that have created an “extraordinary” economic situation which makes predicting growth difficult. In particular he said the US-China trade war “turns the improvements for free trade during the past decade upside down”.
“While the overall picture still looks ‘OK-ish’, the adverse impact is starting to materialise,” he continued. The German economy is expected to shrink for the second quarter in a row. “Many structural issues in the Eurozone have not been resolved over the last decade.”
With the global balance of power shifting, Sewing urged banks to embrace digitalisation and move with the times. “Europe risks losing further ground if we do not seize the opportunity offered by digitalisation.”