Corporate Transformation Case Study

Deutsche Bank: The Transformation from a Domestically-focused Retail Bank into a Global Powerhouse

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Abstract:
German financial giant, Deutsche Bank (DB) had been striving to move away from its age-old precept of serving only the domestic market. The German financial market is fragmented and it is a herculean task to manage a business due to provincial politics and huge losses in lending loans to its compatriot companies. To reduce its dependence on its domestic markets and leverage on the booming global financial markets, DB was endeavouring to become a global financial powerhouse. With its operations in 74 countries, DB has become one of the largest global banks and also won "Bank of the year" award in 2003 and for the second time in 2005. "Passion to perform" tagline has spurred its 64,000 staff worldwide to do better and achieve 25% return on equity in 2005.

Pedagogical Objectives:

• To discuss the need for DB to change its business focus from domestic retail banking to becoming a global financial powerhouse
• To understand the strategies adopted by the company towards achievement of this objective
• To evaluate the strategies adopted to go global
• To discuss the challenges faced by DB in managing a global business with diversified product portfolio.

Keywords : Corporate and Investment Bank (CIB); Private clients and Asset Management (PCAM); Corporate investments (CI); Retail banking; Josef Ackermann; Growth Strategies Case Study; Anshu Jain; Integration of global operations; 'Bank of the year' award; Product innovation; Risk management