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Deutsche signs Net deals
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February 21, 2000: 6:34 a.m. ET
Europe's largest bank ties with SAP, AOL Europe, to boost online presence
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LONDON (CNNfn) - Deutsche Bank unveiled a series of e-commerce initiatives Monday to try to boost the flagging fortunes of its domestic banking business and respond to online moves by its major rivals.
Deutsche is teaming up with Internet portal AOL Europe to create a new platform for online retail banking and brokerage services. The bank also said it will launch a business-to-business joint venture with software publisher SAP, based on the latter's fast-growing mySAP.com portal.
Europe's largest bank by assets also plans to pump 300 million euros ($296 million) into two funds to invest in U.S. and Asian Net ventures.
Analysts said the link with AOL Europe could help to cut the bank's high cost base by allowing it to accelerate branch closures. While Deutsche already offers online services though its Deutsche Bank 24 unit, it trails market leader Comdirect, a unit of Germany's Commerzbank.
Commerzbank (FCMB), Germany's fourth-largest quoted bank, last week announced a tie with Europe's largest Internet portal T-Online, a unit of Deutsche Telekom (FDTE), to offer retail banking services over the Web.
AOL Europe is a 50/50 joint venture between America Online (AOL: Research, Estimates) and German media group Bertelsmann, though the latter is expected to sell its stake following AOL's merger with Time Warner (TWX: Research, Estimates), parent company of CNN.
The deal with SAP will see Deutsche Bank offer transaction services for businesses via a platform managed by SAP, along the lines of the software maker's mySAP.com electronic marketplace. The two companies also agreed to create new industry-specific e-commerce sites, with the first expected to be launched in the third quarter of the year.
Deutsche Bank (FDBK) shares gained 2.6 percent while Frankfurt's Xetra Dax index fell almost 1 percent. While the introduction of mySAP.com has sent SAP [FSE:FSAP3] shares soaring this year, the company's stock was down 2.3 percent in morning trade.
The deals are the latest in a flurry of alliances between European banks and new media companies intended to promote low-cost financial services over the Net. Spain's Telefónica and BBVA, the country's largest bank, formed an online banking venture earlier this month. Lloyds TSB (LLOY) and British Telecommunications (BT-A) announced a similar tie last week. 
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Deutsche Bank
SAP
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