Deutsche Bank Taps New Business Potential with “Magellan“
Deutsche Bank successfully begins first step of “Magellan“
5 million savings accounts on the new platform since early July
Postbank customers migrated by end of 2012; by 2015 up to 24 million customers and 2,000 branches
Total investment sum of about one billion euro by 2015; cost synergies of about 200 million euro in 2012
Future-oriented technology taps new business potential, including in the realm of innovative financial services
The work took about two and a half years – now the first step has been implemented, as planned in 2010: With “Magellan,” Deutsche Bank has launched the most modern high-delivery platform for banking services in Europe.
Since the beginning of July, five million savings accounts of Deutsche Bank have migrated to the new platform that encompasses the entire IT as well as all processing systems of private and corporate customers in Germany. By 2015, all accounts and business processes will have been transferred to Magellan. At that point, over 2,000 branches of Deutsche Bank and Postbank, with over 24 million customers, will be supported by the new system. The goal of this major project, with a total investment sum of about a billion euro, is to provide customers with improved service and higher product quality by 2015. At the same time, Deutsche Bank wants to use Magellan to leverage synergies that should lead to a savings of about 200 million euro in this year alone.
With Magellan, Deutsche Bank is taking another step in the direction of industrializing its business processes by transferring its IT back-end from its proprietary system to SAP standard software and grid computing. Deutsche Bank is thereby carrying out a far-reaching paradigm change that ranges from standardized infrastructure and flexible processes to service-oriented architecture and productivity-oriented interfaces for employees and bank customers. Of particular interest to Deutsche Bank in this regard is the creation of a standardized back-end solution for it and Postbank to use together. The differentiation of the individual brands is carried out via the front-end in various customer channels.
Beyond the leveraging of these synergies, it is interesting to note with regard to changes and new players in the market for financial services that Deutsche Bank is increasing its flexibility through the transformation of its core banking system. It is thereby fulfilling an essential requirement necessary for making its back-end infrastructure capable of integrating with innovative concepts. Deutsche Bank can thus position itself as a highly attractive partner for innovative product offers and value-added services by bringing its central assets of customer trust, market penetration, and infrastructure to the table.
With Magellan and its anticipated synergy potential, Deutsche Bank has created an advantage for itself in comparison with other financial institutes out of its merger with Postbank. It remains to be seen to what extent it will use the strategic options that derive from this merger. With its new IT platform, Deutsche Bank possesses the opportunity to realize further business potential in the realm of innovative concepts.