Deutsche Bank says it will open three innovation labs in Berlin, London, and Silicon Valley in a hunt for new tech that it can use in its own operations.
The German banking giant plans to tap into innovation outside of its own technology ranks by evaluating over 500 ideas from startups each year at the new labs, which it hopes will build bridges with fledgling companies located at the Europe's main tech hubs, Berlin and London, as well as Silicon Valley.
The bank will team up with Microsoft in Berlin, HCL in London, and IBM in Silicon Valley. With their experience of running startup labs, the three companies will support Deutsche Bank's startup efforts with their resources, expertise, and relationships.
According to Deutsche Bank, its staff, alongside those of partners, will engage with startups and universities to find technology that could potentially be used by the bank and its clients. The labs would serve as a kind of incubator where a startup's technology could be trialled and developed, potentially in collaboration with clients.
The new labs follow similar initiatives by others in the banking industry, such as Barclays, which has run an accelerator program since 2013, where it taps into the fintech startup scenes in London and New York.
Barclays and Deutsche Bank are among a handful of banks supporting Accenture and City of London's Fintech Innovation Labs, which launched earlier this year and has been rolled out to London, New York, Asia Pacific, and Dublin.
According to Reuters, American Express recently opened a lab in Palo Alto, California, to build up its capacities in cloud computing and mobile infrastructure.
Deutsche Bank has not reserved a specific sum of money to invest in startups, Reuters reports, but will instead support technologies by deploying them itself or by connecting founders with clients in the financial sector.
ZDNet has asked Deutsche Bank for more details and will update the story if it receives a response.
Deutsche Bank's CIO Kim Hammonds told The American Banker recently that it's looking to forge relationships with startups in the areas of infrastructure, analytics, digital authentication, and security.
"The goal is to drive more innovation into the bank through developing relationships with the startup companies that help the other end of our business. It becomes this full cycle of benefit for the company," she said.
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