German global banking and financial services company Deutsche Bank is set to launch three startup innovation labs in Silicon Valley, London and Berlin to accelerate fintech (financial technology services) companies, which could potentially help the bank’s clients in the financial sector.
The Chief Information Officer of Deutsche Bank, Kim Hammonds told American Banker that out of the 500 companies, which will be evaluated, 50 startups will be implemented either by Deutsche Bank or by the bank’s clients.
As of now, the reserved sum of investments for the accelerator has not been disclosed. However, Hammonds stated that the bank is committed to investing around US$1.11 billion over the next three to five years, part of which will be used to fund the startups. Reuters reported:
“The bank, which unveiled broad plans in April to overhaul its strategy and modernize its tech infrastructure, hopes to screen some 500 fintech startups per year, with some seeking to develop security, payments, efficiency, organization or process applications.”
The bank plans to partner with Microsoft in Berlin, HCL in London and IBM in Silicon Valley to manage the startup innovation labs. The three companies will provide their expertise, relationships and resources needed to run the startup labs.
Apart from the support from its sponsors and partners, Deutsche Bank’s staff will also engage with startups and universities to search for potential candidates for the accelerator program. The accelerator will work like an incubator, providing the startups with opportunities to run trials and develop the technology in association with their clients.
Deutsche Bank aims to engage closely with the startups, providing feedback and searching for ways to implement their technology. According to Reuters, the move is “primarily about innovation, not investments.”
Global banks including Swiss bank UBS and Commerzbank have also initiated similar accelerator programs to support fintech startups that could potentially improve the banks’ efficiency and client support. Last December, an American multinational financial services corporation American Express launched a tech lab in Palo Alto California, to focus on big data, cloud computing and mobile infrastructure.