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Deutsche Bank: IT problems are putting a strain on finances - Postbank conversion costs millions
According to a report from www.welt.de, Deutsche Bank is facing major challenges due to IT problems at its subsidiary Postbank. The change in computer systems not only puts a strain on the company financially, but also in terms of customer service. Customers have complained about blocked accounts and delayed follow-up financing. According to CFO James von Moltke, the additional costs in the fourth quarter alone amount to around 30 to 35 million euros. In addition, a similar amount is set aside as risk provisions for possible loan defaults. The fund subsidiary DWS is also having problems with the IT conversion, which leads to additional costs of 100 million euros each...
Deutsche Bank: IT problems are putting a strain on finances - Postbank conversion costs millions
According to a report from www.welt.de, Deutsche Bank is facing major challenges due to IT problems at its subsidiary Postbank. The change in computer systems not only puts a strain on the company financially, but also in terms of customer service. Customers have complained about blocked accounts and delayed follow-up financing. According to CFO James von Moltke, the additional costs in the fourth quarter alone amount to around 30 to 35 million euros. In addition, a similar amount is set aside as risk provisions for possible loan defaults. The fund subsidiary DWS is also having problems with the IT conversion, which will lead to additional costs of 100 million euros each in 2023 and 2024.
The IT problems at Postbank and DWS are having a negative impact on Deutsche Bank. The additional costs running into millions and customer complaints can have a serious impact on the company's image. Delayed follow-up financing and blocked accounts lead to dissatisfaction and loss of trust among customers. This may result in customers terminating their Postbank accounts or no longer wanting to work with Deutsche Bank.
In addition, the IT problems contribute to a decline in profits. The costs of the IT conversion burden the financial result, while at the same time possible loan defaults have to be taken into account. In addition, the targeted savings from converting the computer systems at DWS are not expected until later, which will lead to further costs and further reduce profits.
The more difficult market environment in the investment bank and at the fund subsidiary DWS is also leading to declines in Deutsche Bank's business. This can have a negative impact on the company's overall earnings.
It remains to be seen how Deutsche Bank will deal with the IT problems at Postbank and DWS and to what extent this will impact the market and consumers. There is a possibility that customers will lose trust in the company and switch to other banks and financial service providers. Deutsche Bank needs to step up its efforts to resolve the issues and regain customer trust.
Source: According to a report from www.welt.de
Read the source article at www.welt.de