Apple Bernadette DC.

Manubay September 19, 2023

MBA

Case Study: Deutsche Bank: The Cost of Legacy Systems

Why were its systems not up to the job?

Deutsche Bank's outdated technology is the reason why there is always an error in its information system.
This is one of the reasons why the bank was not always able to provide the correct information and to run
its business properly. The bank needs to integrate and adapt to new innovative technology that caters to
its products and services and be globally competitive in providing accurate and correct information to its
clients. A Standard Operating Procedure (SOP) is one of the key elements to help the bank standardize its
procedure to ensure a more effective process and eliminate poor and ineffective business processes.
Upgrading the computer systems, purchasing new software, and providing training to its employees will
benefit in enhancing data and improve the reporting of data that is made available to the public that is
used by the CFTC to evaluate systemic risk throughout the swaps markets.

“Deutsche Banks’s subsequent efforts to end the system outage repeatedly exacerbated existing reporting
problems and still led to the discovery and creation of new reporting problems, for example, Deutsche
Bank’s swap data reported before and after the system outage revealed persistent problems with the
integrity of certain data fields, including numerous invalid legal entity identifiers.” A common set of codes
for identifying the same clients would make it possible to attain a reliable reconciliation for other traders
in the market to avoid invalid legal entity identifiers.

“Deutsche Bank was a very unwieldy and expensive bank to operate.” The outdated technology is making
the bank an expensive bank to operate because of the traditional system and unorganized work processes
that function inefficiently.