Deutsche Bank’s securities services business is confronting the threat of disruption from technology firms with what it describes as a “ground-breaking” data analytics capability.
The bank says it will use data to increase clients’ usage of liquidity and to explore why settlements fail, among other aims.
It is working with the bank’s Dublin-based data lab office to consolidate data and integrate it with business analytics.
“This is a ground-breaking launch for Deutsche Bank and the wider banking industry,” said Fiona Gallagher, Deutsche Bank’s head of GTB Securities Services.
“There has been a lot of media attention surrounding technology companies moving into the banking space but this move sees us flex our own muscles when it comes to an area traditionally in the technology domain.
“We have the data, we have the technological and analytical capabilities via our data labs and of course, we have the banking expertise – putting us in a strong position to dig into client data in a way that’s yet to be fully explored in securities services.”
Starting in November 2018, the data project will start being introduced, starting with Germany.
The bank said one initial use will be to analyse clients’ intraday cash liquidity so clients can optimise available liquidity, reduce funding costs and maximise their returns on cash.
Gallagher added: “Next on the agenda for data analytics is ensuring we can identify and understand the drivers behind settlement fails – a key part of achieving settlement efficiency. This is increasingly important following the introduction of the penalty regime under Central Securities Depositary Regulation.”
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