Deutsche Bank has released a report sharing that three out of four capital market participants believe distributed ledger tech will see widespread use within the next three to six years; of 200 surveyed, 87% reported they believe it is likely to have an impact on securities services; respondents believe cost savings and protection against system failures are key benefits to the new technology. Source
Deutsche Bank has reported increased defaults in commercial mortgage backed bonds tied to malls and retail stores that they underwrote in 2012 and 2013; the bank is suggesting investors short the BBB- rated portion of the 2012 Markit CMBX price index, known as the series 6, which they say is tied to these investments; their analysis sees these bonds with pre-crisis attributes which successful investors shorted to avoid losses. Source
Some of the industry's top fintech banking strategists are leaving the corporate world to support fintech startups; three of Deutsche Bank's top executives have left the bank for broadened fintech advisory roles; "Everything from M&A advisory to research to money transfer is being disrupted," says Kerim Derhalli, former Deutsche Bank executive who now leads fintech startup Invstr; as the industry evolves it's likely the market will see more corporate fintech experts involved with new fintech ventures in the private markets. Source
Deutsche Bank has hired Elly Hardwick as head of innovation and Philip Milne as chief technology officer for innovation; both will help to improve internal and external communication and integration of new technologies for the bank; Hardwick will lead the bank's innovation activities and manage the Deutsche Bank Labs; Milne will facilitate communication between the Deutsche Bank Labs and the bank's internal technology organization. Source
Deutsche Bank's innovation lab adds to a number of recently opened innovation labs by other large banks in New York City; the Deutsche Bank innovation lab will be looking to identify new ideas, hire talent from fintech startups, and acquire or invest in fintech startup companies; the innovation lab is Deutsche Bank's fourth in the past 18 months with other labs located in Silicon Valley, London and Berlin; a main focus of the New York lab will be testing new technology for the capital markets with a focus on artificial intelligence, cloud computing and cybersecurity; new technologies implemented from the bank's other sites include enhanced credit risk analysis software, improved network risk management and new applications for retail bank clients. Source
Deutsche Bank acquired a 12.5% stake in receivables auction platform TrustBills as the company looks to upgrade their core technology system; in September 2016 Deutsche Bank CEO John Cryan reportedly told employees they needed to begin thinking more like a tech startup if they were to keep their positions; the move to acquire TrustBills looks like the beginning of a fintech strategy by the bank; TrustBills is a marketplace for national and international trade receivables and they have begun looking to expand to more markets soon. Source
Let's make a collective decision to see the glass as half-full. While physical banking (7,000 US branches gone during 2012-2017) and employment in the sector (425,000 jobs lost since 2013) has been contracting, digital commerce, banking, and investment management have been growing. Even DFA is finally giving in and lowering fees on their $600 billion institutional mutual fund family. Of course, Fintech has been a slow and gradual transformation, not a rapid disruption. We can make a choice to bemoan the loss of the past, or a choice to express an excitement for the future and participate in its making. Which side are you on?
Deutsche Bank examined whether bitcoin is improving in a recent note they sent to clients last week; a few factors have played into fees staying low, less demand with people looking to transfer their bitcoin and the SegWit upgrade to the bitcoin network; while only 14 percent of transactions occur through the SegWit update the tech is helping to improve the network; transaction volumes moving lower are the bigger reason for the drop in fees according to Mosaic.io co-founder Garrick Hileman. Source.