Deutsche Bank to Establish Israeli Technology Center, Says CEO
CEO John Cryan discussed the bank and the state of the wider economy during a visit to Israel
17:3622.03.18
Deutsche Bank AG will establish a technology center in Israel, Deutsche Bank CEO John Cryan said in a conference in Tel Aviv Thursday.
Deutsche Bank CEO John Cryan. Photo: Bloomberg
Mr. Cyran also remarked on his bank’s financial health and on the state of the wider economy. Deutsche Bank has been going through a tough period, but things are now improving along with European economy as a whole, Mr. Cryan said. Italy is still a challenge but the momentum is positive, Mr. Cryan said, adding that the momentum is also positive in the U.S. despite challenges posed by the current administration.
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Mr. Cryan did not elaborate on the exact nature of the center to be opened in the country.
Deutsche Bank CEO John Cryan. Photo: Bloomberg Deutsche Bank is not the first financial institution to start a technology program in Israel. In 2011, Citibank opened a research and development center in the country and since 2013, it has been operating a cybersecurity and fintech startup accelerator in partnership with the Israeli Ministry of Finance. U.K.-headquartered global banking company Barclays PLC has been running a Tel Aviv fintech accelerator program since 2016, and a research an engineering center since 2011. Earlier this month, Barclays said it is expanding its Tel Aviv activity. U.S-based J.P. Morgan opened an innovation center in Israel in 2016. In February, credit card company Visa Inc. announced it is planning to open a technology scouting operation in Israel.
Deutsche Bank operates innovation labs in New York, Silicon Valley, Berlin Frankfurt, and London. The labs, which offer a mentorship program for startups, focus, among other things, on cybersecurity, artificial intelligence, cloud computing and digital retail banking.
Germany has a strong automotive industry and the scope of Israeli innovation in the field makes Israel a promising investment for a German bank, Mr. Cryan said, adding that the bank intends to deploy more resources and capital in Israel.
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In 2017, Deutsche Bank reported a net operating loss of 735 million euros (approximately $906 million). This is the fourth year in a row that the bank has reported losses. Last year, Mr. Cryan received an annual salary of 3.4 million euros (approximately $4.2 million) after taking a 400,000 euros (approximately $493,000) pay cut.
