Core Strengths

Deutsche Bank Wins in Supply Chain Finance, Data Innovation and ESG

Deutsche Bank amply demonstrates its capacity to keep delivering on the global stage, scooping no less than three awards in TMI’s Class of 2020: Best Bank for Trade & FSCM Europe, Best Data Management Innovation Solution, and Treasury4Good Global Bank of the Year. Here, we outline the story of a bank that continues to push the boundaries of best practice and innovation – to the benefit of corporate treasurers and the global ecosystem.

Deutsche Bank has a global trade and supply chain finance (SCF) network of more than 80 locations in 40 countries. The bank has been transforming its business model in recent times and its efforts have been rewarded with the TMI 2020 accolade for Best Bank for Trade & Financial Supply Chain Management (FSCM) in Europe.

Deutsche Bank’s trade and SCF teams take a holistic view, extending their expertise across the entire procurement chain. In particular, the bank has been part of the solution for clients as they navigate the pandemic, as evidenced by the partnership with the German government – administering the latter’s €750bn loan scheme for businesses struggling with the impact of Covid-19.

Supply chain finance is changing the way finance is being provided, coming into its own during the pandemic; as supply chains became dislocated SCF is providing the framework to support a buyer’s suppliers. And given the bank’s track record in this space, it’s no wonder that Deutsche Bank’s SCF business has grown more in the past nine months than the same period last year – on target to grow by 18-20% a year, in contrast to market growth of around 10-12%.

“It is a pleasure to receive this prestigious award,” said Joao Galvao, Global Head and Anil Walia, EMEA Head of Supply Chain Finance, Deutsche Bank Corporate Bank to TMI. “We take a comprehensive view of supply chain finance and aim to provide a flexible and robust offering. It is particularly satisfying to see the resilience of our solutions in this extraordinary year, we are proud to be the bank clients can count on also in a period of crisis. As supply chain finance transcends its boundaries into pre-shipment finance, we are at the forefront of these developments and look forward to improving our global solution.”

With this in mind, the TMI judges had no hesitation in proclaiming Deutsche Bank the 2020 winner of Best Bank for Trade & FSCM Europe. Another easy decision was to present the bank with the accolade of Best Data Management Innovation Solution.

Harnessing the power of data

Back in 2017, Deutsche Bank Corporate Bank launched a global imperative to improve data quality – formalising data management as a key strategic pillar. Targets were set to increase data-quality transparency and reduce adjustments for critical processes such as credit risk management, balance sheet management and liquidity management. Alongside meeting regulations, the solution would only be successful if it:

Spread over three years, the Corporate Bank – working with Deutsche Bank’s Chief Data Office (CDO) – implemented a strategy to drive identification, analysis, prioritisation and remediation of data-quality issues. The solution is the bank’s comprehensive Corporate Bank Data Quality Platform (DQP).

This project not only makes the bank more resilient, but also ensures it remains competitive as the market evolves. From a TMI Awards perspective, it also places Deutsche Bank at the pinnacle of industry expertise, making it a worthy winner of the 2020 Best Data Management Innovation Solution.

David Gleason, Chief Data Officer, Corporate Bank, and Tom Jenkins, Group Head of Data Quality and Governance, Deutsche Bank, told TMI that in corporate banking “the crux of intelligent decision-making lies in data quality”. They continued: “Good quality data results in innovative products, great client service, efficient operations, decreased risk of fraud and accurate financial and regulatory reporting. We are delighted to win this award and it recognises the data management solution developed through the partnership between the Corporate Bank and Chief Data Office as sector-leading.”

Sustainable growth

Aside from being a pioneer in the treasury data world, Deutsche Bank is also leading the pack in sustainability initiatives – earning it TMI’s Treasury4Good Award for Global Bank of the Year 2020.

Deutsche Bank, has a long-term commitment to environmental, social, and governance (ESG) values. Despite the ravages of the Covid-19 pandemic, it has maintained its commitment throughout and since January 2020 has advised clients on 22 transactions, placing nearly €3.5bn of green bonds, social bonds, sustainable bonds and bonds linked to sustainability criteria.

In May 2020, Deutsche Bank publicly committed that by 2025 its total volume of sustainable financing and investments will grow to at least €200bn, and that its operations will be powered entirely by renewable energy sources. Christian Sewing, the bank’s CEO, also reiterated this year his recognition that ESG must sit at the heart of any corporation’s strategies. “Climate change,” he said, “is an issue that will grow rather than diminish in importance.”

Deutsche Bank continues to further its sustainability expertise through innovative multimedia channels, including flow magazine and Trade Finance TV, enabling the voices of internal and external experts to reach a wider audience.

For Gerald Podobnik, CFO and Head of Sustainability, Deutsche Bank Corporate Bank, becoming TMI’s Treasury4Good Global Bank of the Year 2020 in the face of strong competition underlines the bank’s dedication to ESG. “Thank you for this award. It means so much to us as sustainability and ESG have to sit at the heart of any corporation’s strategy – including our own. These frameworks not only shape our licence to operate but also help us to be a strong and credible partner for our clients in the economy’s transitioning to become more sustainable.

“Deutsche Bank transactions that demonstrated the ‘E’, the ‘S’ and the ‘G’ in action have included green bonds, financing of social infrastructure as well as loans that drive sustainable behaviour via preferential pricing when sustainability targets are met. And there are many more to come!” The TMI judges could not agree more and, while honouring the bank’s ESG achievements thus far, are excited to see what happens next.