Deutsche Bank Final
Deutsche Bank Final
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History
The Deutsche Bank Twin Towers, the headquarters of Deutsche Bank, at the
banking district of Frankfurt, Germany.
1870-1945
Deutsche Bank was founded in Germany in 1870 as a specialist bank for foreign
trade in Berlin.[4] The bank's statute was adopted on 22 January 1870, and on 10
March 1870 the Prussian government granted it a banking license. The statute laid
great stress on foreign business: "The object of the company is to transact banking
business of all kinds, in particular to promote and facilitate trade relations between
Germany, other European countries and overseas markets.
The bank's first domestic branches, inaugurated in 1871 and 1872, were opened in
Bremen and Hamburg. Its first foray overseas came shortly afterwards, in Shanghai
(1872) and London
After Adolf Hitler came to power, instituting the Third Reich, Deutsche Bank
dismissed its three Jewish board members in 1933. In subsequent years Deutsche
Bank took part in the aryanization of Jewish-owned businesses: according to its
own historians, the bank was involved in 363 such confiscations by November
1938.During the war, Deutsche Bank incorporated other banks that fell into
German hands during the occupation of Eastern Europe. Deutsche provided
banking facilities for the Gestapo and loaned the funds used to build the Auschwitz
camp and the nearby IG Farben facilities. Deutsche Bank revealed its involvement
in Auschwitz in February 1999.In December 1999 Deutsche, along with other
major German companies, contributed to a $5.2 billion compensation fund
following lawsuits brought by Holocaust survivors.The history of Deutsche Bank
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during the Second World War has been documented by independent historians
commissioned by the Bank.
During World War II, Deutsche Bank became responsible for managing the
Bohemian Union Bank in Prague, with branches in the Protectorate and in
Slovakia, the Bankverein in Yugoslavia (which has now been divided into two
financial corporations, one in Serbia and one in Croatia), the Albert de Barry Bank
in Amsterdam, the National Bank of Greece in Athens, the Oesterreichische
Creditanstalt-Bankverein in Austria and Hungary, the Deutsch-Bulgarische
Kreditbank in Bulgaria, and Banca Commercial Romana in Bucharest. It also
maintained a branch in Istanbul, Turkey
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Introduction
Deutsche Bank
Deutsche Bank (literally "German Bank"; pronounced is an international universal
bank with its headquarters in Frankfurt, Germany. The investment bank division is
head-quartered in London, United Kingdom. The bank employs more than 100,000
people in 74 countries, and has a large presence in Europe, the Americas, Asia
Pacific and the emerging markets.
Deutsche Bank has offices in major financial centers including New York, London,
Frankfurt, Paris, Moscow, Amsterdam, Toronto, São Paulo, Singapore, Hong
Kong, Tokyo, Sydney and Mumbai. Furthermore, the bank is investing in
expanding markets, such as the Middle East, Latin America, Central & Eastern
Europe and Asia Pacific.
The bank offers financial products and services for corporate and institutional
clients along with private and business clients. Services include sales, trading, and
origination of debt and equity; mergers and acquisitions (M&A); risk management
products, such as derivatives, corporate finance, wealth management, retail
banking, fund management, and transaction banking.
Deutsche Bank’s Chief Executive Officer and Chairman of the Group Executive
Committee, since 2002, is Josef Ackermann. He agreed at the end of 2009 to
continue as chief executive of Deutsche Bank for another three years till 2013
Deutsche Bank is listed on both the Frankfurt (FWB) and New York stock
exchanges (NYSE).
Deutsche Bank is major global investment bank with a powerful clientele and
gainful franchise. Deutsche Bank is undoubtedly a market leader in Europe and
Germany and is showing signs of constant growth in Asia, United States and
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important nascent markets. With over 78,000 employees in more than 70 nations
all over the world, Deutsche Bank provides matchless financial services across the
globe.
The goal of Deutsche Bank is to become the supreme financial services provider in
the world by offering value-added services and outstanding financial solutions.
Deutsche Bank has locations in major global financial hubs such as London, New
York, Paris, Frankfurt, Amsterdam, Moscow, São Paulo, Toronto, Hong Kong,
Singapore, Sydney and Tokyo. The bank is also making investments in growing
markets.
During its journey towards success, Deutsche Bank India has achieved certain
landmarks which include the following:
Private Banking
1. db Wealth Pro
2. db Financial Planning
3. Global Concierge Assistance
4. Superior Product Suite
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5. World Class Research
6. Premium Privileges
Personal Banking
1) Savings Account
1.Mutual Funds
2. Systematic Investment Plan
3. Equity Linked Savings Schemes
4. Portfolio Management Services
5.db Demat Account
6.Bonds
7.db Trade Pro
8.Life Insurance
1. Life Insurance - Products
2. Human Life Value
9. Non Life Insurance
10.Classic Debit Card
11.Gold Debit Card
12.Loan
13.Loan against Property
14. Home Loan
15. Overdrafts
16. Business Banking
1. db Current Account Trade
2. Current Account
3. Trade Services & Forex
4. db Cash Management Services
5. Corporate Executive Solutions
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6. Fixed Deposit
17. NRI Banking
1.NR Bank Accounts
2. db Value-Plus NRI Savings Account
3. NRI Advantage Banking
18. Money Transfer
1.Online Money Transfers
2. NR Fixed Deposits
19. Credit Cards
1. Premium Credit Cards
2. Platinum Credit Card
3. Platinum Select Credit Card
20. Db Easy Loan
Health Care Policy
Management Structure:
Until recently, there was no CEO at Deutsche Bank. The board was represented by
a “speaker of the board.” Today, Deutsche Bank has a Management Board whose
members are: Josef Ackermann (Chairman and CEO); Hugo Bänziger (Chief Risk
Officer); Anshu Jain (Corporate and Investment Banking); Jürgen Fitschen
(Regional Management); Rainer Neske (Private & Business Clients); Hermann-
Josef Lamberti (Chief Operating Officer) and Stefan Krause (Chief Financial
Officer).
The Group Executive Committee is the Management Board plus the heads of the
bank’s other business areas, namely: Kevin Parker (Asset Management); and Pierre
de Weck (Private Wealth Management).
Structure : -
Deutsche Bank’s mission statement is: “We compete to be the leading global
provider of financial solutions, creating lasting value for our clients, our
shareholders, our people and the communities in which we operate” The bank’s
business model rests on two pillars: the Corporate & Investment Bank (CIB) and
Private Clients & Asset Management.
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Private Wealth Management :
Private Wealth Management functions as the bank’s private banking arm, serving
high net worth individuals and families worldwide. The division has a strong
presence in the world's private banking hotspots, including Switzerland,
Luxembourg, the Channel Islands, the Caymans and Dubai.
Communication :
On most modern ATMs, the customer is identified by inserting a plastic ATM card
with a magnetic stripe or a plastic smart card with a chip, that contains a unique
card number and some security information such as an expiration date or CVVC
(CVV). Authentication is provided by the customer entering a personal
identification number (PIN).
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Using an ATM, customers can access their bank accounts in order to make cash
withdrawals, credit card cash advances, and check their account balances as well as
purchase prepaid cellphone credit. If the currency being withdrawn from the ATM
is different from that which the bank account is denominated in (e.g.: Withdrawing
Japanese Yen from a bank account containing US Dollars), the money will be
converted at a wholesale exchange rate. Thus, ATMs often provide the best
possible exchange rate for foreign travelers and are heavily used for this purpose as
well.[1]
Mobile banking:
Mobile banking has until recently (2010) most often been performed via SMS or
the Mobile Web. Apple's initial success with iPhone and the rapid growth of
phones based on Google's Android (operating system) has led to increasing use of
special client programs, called apps, downloaded to the mobile device.
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A mobile banking conceptual model
According to this model Mobile Banking can be said to consist of three inter-
related concepts:
Mobile Accounting
Mobile Brokerage
Mobile Financial Information Services
The advent of the Internet has enabled new ways to conduct banking business,
resulting in the creation of new institutions, such as online banks, online brokers
and wealth managers. Such institutions still account for a tiny percentage of the
industry.
Over the last few years, the mobile and wireless market has been one of the fastest
growing markets in the world and it is still growing at a rapid pace. According to
the GSM Association and Ovum, the number of mobile subscribers exceeded 2
billion in September 2005, and now exceeds 2.5 billion (of which more than 2
billion are GSM).
With mobile technology, banks can offer services to their customers such as doing
funds transfer while travelling, receiving online updates of stock price or even
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performing stock trading while being stuck in traffic. Smartphone’s and 3G
connectivity provide some capabilities that older text message-only phones do not.
Many believe that mobile users have just started to fully utilize the data capabilities
in their mobile phones. In Asian countries like India, China, Bangladesh, Indonesia
and Philippines, where mobile infrastructure is comparatively better than the fixed-
line infrastructure, and in European countries, where mobile phone penetration is
very high (at least 80% of consumers use a mobile phone), mobile banking is likely
to appeal even more.
These models differ primarily on the question that who will establish the
relationship (account opening, deposit taking, lending etc.) to the end customer, the
Bank or the Non-Bank/Telecommunication Company (Telco). Another difference
lies in the nature of agency agreement between bank and the Non-Bank. Models of
branchless banking can be classified into three broad categories - Bank Focused,
Bank-Led and Nonbank-Led.
Bank-focused model
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Bank-led model
Non-bank-led model
The non-bank-led model is where a bank has a limited role in the day-to-day
account management. Typically its role in this model is limited to safe-keeping of
funds. Account management functions are conducted by a non-bank (e.g. telco)
who has direct contact with individual customers.
Account Information
Investments
Support
Content Services
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Challenges for a Mobile Banking Solution
Handset operability
There are a large number of different mobile phone devices and it is a big
challenge for banks to offer mobile banking solution on any type of device. Some
of these devices support Java ME and others support SIM Application Toolkit, a
WAP browser, or only SMS.
Initial interoperability issues however have been localized, with countries like
India using portals like R-World to enable the limitations of low end java based
phones, while focus on areas such as South Africa have defaulted to the USSD as a
basis of communication achievable with any phone.
The desire for interoperability is largely dependent on the banks themselves, where
installed applications(Java based or native) provide better security, are easier to use
and allow development of more complex capabilities similar to those of internet
banking while SMS can provide the basics but becomes difficult to operate with
more complex transactions.
Security
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Security of financial transactions, being executed from some remote location and
transmission of financial information over the air, are the most complicated
challenges that need to be addressed jointly by mobile application developers,
wireless network service providers and the banks' IT departments.
One-time password (OTPs) are the latest tool used by financial and banking
service providers in the fight against cyber fraud [6]. Instead of relying on
traditional memorized passwords, OTPs are requested by consumers each time
they want to perform transactions using the online or mobile banking interface.
When the request is received the password is sent to the consumer’s phone via
SMS. The password is expired once it has been used or once its scheduled life-
cycle has expired.
Because of the concerns made explicit above, it is extremely important that SMS
gateway providers can provide a decent quality of service for banks and financial
institutions in regards to SMS services. Therefore, the provision of service level
agreements (SLAs) is a requirement for this industry; it is necessary to give the
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bank customer delivery guarantees of all messages, as well as measurements on the
speed of delivery, throughput, etc. SLAs give the service parameters in which a
messaging solution is guaranteed to perform.
Mobile banking has come in handy in many parts of the world with little or no
Infrastructure development, especially in remote and rural areas. This part of the
mobile commerce is also very popular in countries where most of their population
is unbanked. In most of these places banks can only be found in big cities and
customers have to travel hundreds of miles to the nearest bank.
Countries like Sudan, Ghana and South Africa received this new commerce very
well.In Latin America countries like Uruguay, Paraguay, Argentina, Brazil,
Venezuela, Colombia, Guatemala and recently Mexico started with a huge success.
In Colombia was released with Redesign.
In Iran banks like Parsian, Tejarat, Mellat, Saderat, Sepah, edbi and bankmelli
offer this service. Guatemala have the support of Banco industrial.
Mexico released the mobile commerce with Omnilife, Bancomer and a private
company (MPower Ventures). Kenya's Safaricom (Part of the Vodafone Group)
has had the very popular M-Pesa Service - mainly used to transfer limited amounts
of money, but has been increasingly used to pay utility bills. Zain in 2009 launched
their own mobile money transfer business known as ZAP in Kenya and other
African countries.
Telenor Pakistan has also launched Mobile banking solution, in coordination with
Taameer Bank, under the label "Easy Paisa". Telenor rolled out its Mobile banking
solution in Q4, 2009. It was a huge success and customers embraced the wide set
of services offered. Eko India Financial Services the is business correspondent of
State Bank of India (SBI) and ICICI Bank, India's top two largest banks, and
provides no-frills bank accounts and deposit, withdrawal and remittance services to
customers (nearly 80% of whom are migrants or the unbanked section of the
population) through mobile banking. [7], and also offer micro-insurance and micro-
finance
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Online Banking:
Features
Online banking solutions have many features and capabilities in common, but
traditionally also have some that are application specific.
Security
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Security token devices
The PIN/TAN system where the PIN represents a password, used for the login and
TANs representing one-time passwords to authenticate transactions. TANs can be
distributed in different ways, the most popular one is to send a list of TANs to the
online banking user by postal letter. The most secure way of using TANs is to
generate them by need using a security token. These token generated TANs depend
on the time and a unique secret, stored in the security token (this is called two-
factor authentication or 2FA). Usually online banking with PIN/TAN is done via a
web browser using SSL secured connections, so that there is no additional
encryption needed.
Another way to provide TANs to an online banking user, is to send the TAN of the
current bank transaction to the user's (GSM) mobile phone via SMS. The SMS text
usually quotes the transaction amount and details, the TAN is only valid for a short
period of time. Especially in Germany and Austria, many banks have adapted this
"SMS TAN" service as it is considered as very secure.
Signature based online banking where all transactions are signed and encrypted
digitally. The Keys for the signature generation and encryption can be stored on
smartcards or any memory medium, depending on the concrete implementation.
Attacks
Most of the attacks on online banking used today are based on deceiving the user
to steal login data and valid TANs. Two well known examples for those attacks are
phishing and pharming. Cross-site scripting and keylogger/Trojan horses can also
be used to steal login information.
The most recent kind of attack is the so-called Man in the Browser attack, where a
Trojan horses permits a remote attacker to modify the destination account number
and also the amount.
Countermeasures
There exist several countermeasures which try to avoid attacks. Digital certificates
are used against phishing and pharming, the use of class-3 card readers is a
measure to avoid manipulation of transactions by the software in signature based
online banking variants. To protect their systems against Trojan horses, users
should use virus scanners and be careful with downloaded software or e-mail
attachments.
In 2001 the FFIEC issued guidance for multifactor authentication (MFA) and then
required to be in place by the end of 2006.[5]
Video banking :
Video banking is a term used for performing banking transactions or professional
banking consultations via a remote video connection. Video banking can be
performed via purpose built banking transaction machines (similar to an
Automated teller machine), or via a videoconference enabled bank branch.
Today, video banking has many forms, each with its own benefits and limitations.
In-branch
Video banking can be conducted in a traditional banking branch [1]. This form of
video banking replaces or partially displaces the traditional banking tellers to a
location outside of the main banking branch area. Via the video and audio link, the
tellers are able to service the banking customer. The customer in the branch uses a
purpose built machine to process viable medias such as cheques, cash, or coins.
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Time Convenience
Video banking can provide professional banking services to bank customers during
nontraditional banking hours at convenient times such as in after hours banking
branch vestibules that could be open up to 24 hours a day [2]. This gives bank
customers the benefit of personal teller service during hours when bank branches
are not typically open.
Location Convenience
Technology Branches
Although video banking has many different forms, they all have similar basic
components.
Video Connection
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Transaction Equipment
Other than the deployment location, one of the major differences between video
banking and videoconferencing is the ability to conduct banking transactions and
exchange viable Medias such as checks, cash, and coins. Purpose built machines,
such as a Personal Teller Machine (PTM), enable both the video / audio link to the
customer plus the ability to accept and dispense viable medias [6]. The system
typically allows the bank teller to manipulate the PTM machine to accept or
dispense the cash and checks.
Depending on the type of video banking solution deployed there are numerous
types of services that can be offered. In conjunction with transaction hardware
video banking can include all of the following types of services[7].
Customer authentication
Cash Deposits
Check Deposits
Cash Withdrawal
Coin Withdrawals
Check Print
Account Transfers
Bill Payments
Account inquiries
Process New Accounts
With all types of video banking the following services are enabled:
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