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Deutsche Bank boss tells staff to think like a tech firm, if they keep their jobs
Bankers working for Germany’s biggest lender should think of themselves like tech entrepreneurs, according to its chief executive.
Deutsche Bank’s boss John Cryan said the company – which lost €6.8bn (£5.8bn) last year – needs to become more nimble and creative, and should take inspiration from firms in Silicon Valley.
The bank's employees, including its 8,000 or so staff in London, should act on their own initiative “instead of waiting for an instruction from above”, he said, ordering managers to foster a culture of “self-reliance.”
“This mindset is also necessary if we want to see ourselves increasingly as a technology company. We should be more daring and think a bit more like entrepreneurs,” Mr Cryan wrote in a letter to staff.
“This does not just apply to the management board. Entrepreneurial initiative arises wherever business is done. You are best placed to see what could be changed and what could be improved. Often it is the small steps that bring us farthest forward. Innovation is crucial in this respect.”
That does not mean the bank has a high-growth future ahead of it, however, as Mr Cryan also warned that more job cuts are on the way.
“Too often I see in my own daily routine that too many different people are busy doing the same work as each other,” chief executive said.
“Sometimes there are valid reasons for this. But often a particularly cautious approach or a hierarchical mindset gets in our way instead of making us better and safer.”
The bank is shrinking down as it seeks to focus on the most profitable bits of its business, but Mr Cryan said that does not mean every rumour about sales is true.
“Do not allow yourself to become distracted by speculation about alleged mergers or sales plans,” he said.
“There is one rumour in particular that I would like to dispel by making it unambiguously clear that Deutsche Asset Management is and will remain an essential part of our business model. We have enough on our plate to solve on our own, and we intend to concentrate on this for now.”
Other parts of the business have been sold, however, including the bank’s subsidiary in Argentina, while it is also selling German retail bank Postbank.