Deutsche Bank to replace legacy systems with SAP

Deutsche Bank is replacing multiple IT systems with core banking software from SAP to standardise payments, account management and savings applications.

The...

Deutsche Bank is replacing multiple IT systems with core banking software from SAP to standardise payments, account management and savings applications.

The deal, which covers the bank's German operations, will be implemented over a period of years.

Deutsche Bank plans to move away from building its own core banking systems to a service oriented architecture (SOA). The bank said it will gain flexibility by quickly creating different systems that can be used by a range of departments.

Don Free, an analyst at Gartner, said the move is part of the bank's drive to buy software which does not necessarily offer competitive advantage from suppliers, rather than develop it in-house.

The fact that the deal is in Germany reflects an industry-wide trend to move away from standardising international businesses and to focus on home markets.

Although SAP is just breaking into banking it has won major deals in South Africa, Canada, China and the UK in the form of Nationwide. After a slow start SAP could become a major player in a sector where core banking systems are consolidating, said Free.

One banking commentator said the project is a big step for Deutsche Bank. SAP has been pushing core banking software for years but it has not really taken off.

"SAP has been pushing its software to banking at the annual SIBOS event for years but SAP is monstrously complicated and it has not really been taken up," he said.

"It is surprising that a bank that prides itself on being conservative would do this."

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