Oracle announced its IT deal with Deutsche Bank to simplify its information technology systems that will enable to bank to cut costs.
Migrating its systems to Oracle Exadata Cloud@Customer will enable Deutsche Bank to consolidate existing critical applications on a single platform while complying with its data residency requirements and significantly reducing operational costs.
Oracle’s service can run in Deutsche Bank’s current data centers as well as in future cloud co-location sites, minimizing latency while supporting the shift of applications to the cloud. It will enable Deutsche Bank to drive data integration across its business in order to streamline operations, provide unified oversight of core service processes and implementations, and easily develop and scale applications based on customer demand.
Deutsche Bank has spent years modernizing its computer systems that have caused headaches and which former Chief Executive John Cryan had publicly called lousy, Reuters reported.
The migration is expected to take three to five years and should help lower Deutsche Bank’s total annual costs to 16.7 billion euros ($19.9 billion) by 2022 from the 19.5 billion it posted in 2020.
In 2021, the bank plans to add 2,000 to 3,000 jobs in technology, data and innovation, said Deutsche Bank Chief Technology Officer Bernd Leukert, who joined from SAP in 2019 and has since been re-organising the bank’s IT systems.
By the end of next year, half of the unit’s staff would be software engineers, up from 30 percent at the end of 2020, he said at an event this week.
Oracle is planning to transfer platforms of some of Deutsche Bank’s core functions such as payments, trading and risk management to one system, promising smooth operation and regular updates, the two groups said on Thursday.
“We want to reduce the complexity of our technology estate. The goal is to run the bank with around one third of the applications we have today,” Leukert told Reuters.
Deutsche declined to comment on how much it was investing in the IT upgrades.
Deutsche uses technology from Google for less critical applications and will continue to work with SAP technology.
Oracle is setting up a private cloud for Deutsche Bank, modernizing the bank’s technology that must stay on premises for regulatory reasons. Oracle has created clouds for others but Deutsche Bank’s would be its largest to date, Oracle manager Juan Loaiza said.