Deutsche Bank is opening the door to Wall Street startups.
The German bank, which is one of the last big financial firms to be based in the historic heart of New York finance near Wall Street, has opened a new innovation lab in the area as part of its ongoing effort to modernise its infrastructure.
The bank appointed a new group chief information officer, Pascal Boillat, earlier this month. Around the same time, it said it would “align certain parts of its technology and other overhead functions to its business divisions
to increase accountability and reduce costs.”
The new lab will be the firm’s fourth innovation lab and it will facilitate exploration into “new technologies focused on several areas including artificial intelligence, cloud technology and cyber security,” according to a news release.
Business Insider spoke with Elly Hardwick, the head of innovation at the firm. She said that the incubator is indicative of a new environment of mutually beneficial cooperation between legacy banks and fintechs.
“I really think the relationship between financial technology startups and big banks has changed,” Hardwick said.”Both sides have matured substantially and they realise they need each other.”
“This isn’t about fending off fintechs as competitors, but rather improving our position as a partner to fintechs and as an innovator in our industry,” Hardwick added.
Hardwick highlighted two key areas the lab will explore:
- Data – “We will be looking at small data sets that are deeply buried and not well understood,” she said.
- Regulations – “Regulatory remains another huge opportunity,” she said. “There’s so much cost there, so that’s another valuable area that we will be exploring.”