Deutsche Bank is challenging the FinTech community head-on with a new analytics tool for its securities services business, allowing it to analyse millions of lines of data daily.
Starting with the German market, followed by a wider roll-out, the new service will go live in November, enabling daily data analysis on securities transactions and identifying efficiency opportunities in the bank’s and its client’s securities settlements.
Deutsche Bank is aiming to unlock the value in its huge transaction data repository, which includes details on holdings, the movement of cash, securities and other instruments in and out of client accounts.
“There has been a lot of media attention surrounding technology companies moving into the banking space but this move sees us flex our muscles when it comes to an area traditionally in the technology domain,” said Fiona Gallagher, global head of securities services, Deutsche Bank.
The new service was developed jointly between Deutsche Bank’s securities services team and its Dublin-based data labs, and consolidates all of its data across different systems onto a new scalable platform.
One use case the bank identified was in analysing clients’ intraday cash liquidity, where it can provide insights enabling them to optimise their available liquidity, reduce funding costs and maximise returns on cash.
Big data is becoming a greater value proposition for custodians than the traditional model of asset keeping and settlement.
Banks are under huge pressure to provide data management and analysis tools from clients, and are facing stiff competition from more agile FinTech firms, as well as from technology giants such as Google and Amazon that are specialists in big data.
Deutsche Bank’s Gallagher highlighted its next aim for its data analytics services is to address settlement fails, as the impending Central Securities Depository Regulation (CSDR) looms.