Deutsche Bank: Banks Must Partner with Fintech and Digital Currency Businesses or Risk Disappearing Altogether
The number of banks experimenting with blockchain technology and looking at their own digital currencies is growing by leaps and bounds, so it’s no surprise that Deutsche Bank is well on its way to having its own blockchain technology. In a recent statement, the bank was quoted as saying: “Banks must partner with fintech and digital currency businesses....
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To put this into numbers people can understand, Deutsche Bank’s market leverage ratio is 96%. This makes them one of the world’s riskiest banks to deal with. Things continue to evolve in the wrong direction for Deutsche Bank in recent months. After being hit with large files several times in a row, there have been questions regarding the liquidity of this bank. Moody’s has issued a new warning about Deutsche Bank, stating how the institution is getting near its “default point.” That may be the last thing investors of the bank want to hear right now. To put the news into perspective,....
Established financial players around the world have been keeping a close eye on the advancements made by Bitcoin and other FinTech companies. Some of them have even started to develop new blockchain-based projects, in an attempt to deploy this technology as a cost-cutting measure. But by the look of things, banks will need to start cooperating with FinTech companies for B2B services, which could be positive news for Bitcoin as well. Deutsche Bank is one of the first to openly admit things need to change.
Deutsche Bank sees The DAO incident as a timely reminder of the importance of testing products before they are unleashed. In 2014 Deutsche Bank launched a series of innovation labs in collaboration with IBM, Microsoft and the Indian outsourcing company HCL. The aim was to improve the bank’s digital banking services. Deutsche Bank’s Blockchain project is now out of the ‘proof of concept’ stage. Deutsche Bank’s labs are based in Berlin, London and Palo Alto. Their Palo Alto lab’s aim is to evaluate emerging technologies from Silicon Valley and apply them to enhance their products. The three....
The Financial Action Task Force (FATF) has taken note of the issues hindering partnerships between bitcoin businesses and banks. At a Brussels meeting with industry figures last Friday, the anti-money laundering policy maker proposed a risk-based approach that ensures every digital currency business is evaluated on an individual basis. A risk-based approach means that banks identify and assess the money laundering and terrorist financing risks they are exposed to, setting the appropriate mitigation measures accordingly. Securing a banking partner has proved to be notoriously difficult for....
John Cryan, CEO of Deutsche Bank AG, a German global banking and financial services company, predicted that cash will not exist in the next ten years. Cash is inefficient and expensive, he explained, while mentioning fintech as a possible substitute to replace fiat money. Since the beginning of 2015, an increasing number of banks and financial organizations have proposed the implementation of a cryptocurrency or a centralized blockchain-based token to potentially replace cash as the official currency of the central bank. By integrating a certain set of technical rules that would provide....