Businessmodel of Deutsche Bank

Customer Segments

Deutsche Bank provides a large portfolio of services designed to serve a broad spectrum of clients. The Company’s four core operating segments target different customer segments:

• Corporate Banking and Securities, which serves corporate clients and investors;
• Private and Business Clients, which serves large retail clients and high-net-worth individuals;
• Global Transaction Banking, which serves medium and large commercial businesses, public bodies, and financial institutions; and
• Deutsche Asset and Wealth Management, which serves high-net-worth and ultra-high-net-worth individuals and family offices. Deutsche Bank’s principal market is its native Germany and Western Europe. The Company, however, serves clients globally, including customers across the following geographic segments: Eastern Europe, North America, Central and South America, Asia Pacific, and Africa.

Value Propositions

Deutsche Bank provides value to its clients in the following ways:

• Its industry standing and reputation, with the Company being one of the most well-known companies of its kind worldwide, and with there being a certain prestige to being among the Company’s clients;
• Its technical expertise and experience, with the Company employing highly-qualified, specialist staff across its core operating divisions, and appointing only experienced industry executives;
• Its international reach, with the Company serving customers across Europe, the Americas, Africa and Asia through an established office network; and
• Its track record as a reliable provider of banking and non-banking financial services, with the Company having been in operation for a number of years, with a name for providing efficient and reliable services. ### Channels

Deutsche Bank operates a website at www.db.com, through which it provides information on its various products and services, and its activities. The Company provides online and mobile banking services that allow customers of the Company’s Private and Business Banking segment to access information and certain financial products and operations.

Much of Deutsche Bank’s Private and Business Banking segment services can also be provided through the Company network of 2,790 branches across Germany and abroad, as well as through its customer contact centres. The Company’s branch and customer contact centre operations are supported by network of self-service terminals.

Deutsche Bank’s more complex services, particularly its wealth management and commercial banking products, are sold through the Company’s dedicated sales teams, which are organised geographically. While the Company principally develops and markets its own products and services across Europe, the Middle East, Asia and the Americas, it also markets services through independent financial agents, and country-specific distribution and cooperation agreements with local operators and third-party distributors.

Customer Relationships

Deutsche Bank provides a range of services through its online and mobile banking platforms, through which customers can manage their finances without interacting with members of the Deutsche Bank staff. Customers are also provided a self-service option through the Company’s network of self-service terminals.

The majority of Deutsche Bank’s products and services are provided by the Company’s in-branch staff and dedicated sales and support teams, which are able to provide a greater degree of personal care. Customers of the Company’s more complex services consult closely with the Company’s staff in order that their individual needs are met and that all options are thoroughly pursued. The Company collaborates on an ongoing basis with its larger clients, with a view to establishing longstanding relationships.

Deutsche Bank provides a range of support and customer relationship services, through online and telephone channels, as well as in person. The Company also operates several social media accounts – including with Facebook, Twitter, LinkedIn, and Xing – through which it can interact with its customers directly.

Key Activities

Deutsche Bank is a global investment bank. It provides a range of commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, government bodies, institutional investors, small and medium-sized businesses, and private individuals.

The Company operates through four core business divisions: Global Markets, which provides a diversified portfolio of products across debt and equity markets; Corporate & Investment Banking, which includes commercial banking, corporate finance and transaction banking services; Deutsche Asset Management, which operates as an investment management organisation, providing traditional and alternative investments across all asset classes; and Private, Wealth and Commercial Clients, which combines its private and commercial banking, and wealth management services.

Key Partners

Deutsche Bank partners with a range of companies and organisations across its core operating segments. These partnerships include:

• Community and Education Partners, comprising educational and academic institutions and charitable organisations, with which the Company collaborates on community projects;
• Distribution and Channel Partners, comprising third-party distributors, local banking providers, and independent financial agents; and
• Strategic and Alliance Partners, comprising a range of banking and non-banking companies with which Deutsche Bank shares tools and resources and collaborates on joint-venture projects. Deutsche Bank is also member of the Global ATM Alliance, under which customers of various international banks are able to use Deutsche Bank’s self-service terminals.

Deutsche Bank has a number of partnerships in place, including a global communications partnership with Vodafone, a distribution partnership with financial technology company Ormsby Street, and a treasury management partnership with Bombardier.

Key Resources

Deutsche Bank’s key resources are its financial resources, its communications and technology infrastructure, its network of physical offices and branches – including its numerous self-service terminals, its sales and marketing channels, its partnerships, and its personnel.

Deutsche Bank has an international network of 2,790 branches, as well as offices across financial hubs in Europe, Asia, the Americas, Africa, and the Middle East. It also employs a complex communications and technology network that enable sit to complete transactions and move money quickly and efficiently, which is key to the Company’s effectiveness.

Cost Structure

Deutsche Bank incurs costs in relation to the operation of its physical infrastructure – including branches, offices, and self-service terminals, the maintenance of its technology and communications infrastructure, the payment of professional fees, the implementation of marketing and advertising strategies, the management of its partnerships, and the retention of its personnel.

In 2015 Deutsche Bank’s largest expense related to the payment of salaries and benefits to its workforce of more than 101,000 employees, which amounted to €13.29 billion. The Company accrued IT costs in the amount of €3.66 billion, and paid professional service fees totalling €2.28 billion for the year. The Company’s occupancy expenses were also substantial, totalling €1.94 billion.

Revenue Streams

Deutsche Bank generates revenue through the sale of various retail, commercial and investment banking services, deriving revenue from the collection of fees and commission, and through the accrual of interest.

In 2015 Deutsche Bank generated annual revenue of €33.53 billion, up slightly on the €31.95 billion recorded by the Company the previous year. The Company’s Corporate Banking and Securities segment was the Company’s largest revenue generator, recording net revenue for the year of €14.22 billion. This was followed by the Private and Business Clients segment with €8.91 billion, the Global Transaction Banking segment €4.62 billion, and the Deutsche Asset and Wealth Management segment with €5.41 billion.