Deutsche Bank SWOT & PESTLE Analysis

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the Bank is continuously growing in North America, Asia and key emerging markets. Deutsche Bank offers unparalleled financial services throughout the world. The Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people. Thus, SWOT Analysis presents a discussion on the internal and external environment of Deutsche Bank. The analysis highlights the opportunities in the external environment that can be harvested to further strengthen the company. The SWOT report also shares intel on the internal weaknesses and external threats that the company should take note of while operating in a highly competitive environment.
Deutsche Bank has outlined its businesses into a matrix structure comprising of corporate divisions, infrastructure divisions, and regional management divisions. This allows the bank to grow, acquire new clients and manage ongoing operations and dealings with existing clients globally. Despite its towering strengths the bank deals with internal weaknesses. The restructuring activities across the country and client in addition to reductions in product portfolio could have a significant impact on the revenue generation capacity of Deutsche. Deutsche needs massive capital in order to fix issues related to its weak infrastructure. The bank needs to revive its Know-your-customer policy and tighten its anti-money laundering infrastructure to improve the performance.
Deutsche seeks opportunities by amalgamating with Google Cloud 2020, transition towards remote banking, leveraging business Intelligence and data analytics. Advancements in technology including the evolution of tools are presenting financial institutions with a competitive advantage and enormous growth opportunities. The fluctuations in trade policies and low-interest rates have been a constant threat to the bank, impacting the bank's balance sheet with an intangible cost. Increasing competition and loss of business in the domestic market has raised the competition level, increasing the complexity level for Deutsche to sustain as ‘primary relationship banker’ for German corporates.
The SWOT analysis for Deutsche Bank is presented below:

Strengths	Weaknesses
1. Structured organization and transformation to aid growth 2. Alignment between performance and pay 3. Strong European and global brand 4. Strong market position in Corporate Bank and Investment Bank segment	1. Restructuring to impact revenue Generation in the short run 2. Litigation expenses eating into the profitability 3. Weak Infrastructure Issues 4. Oversight in Jeffrey Epstein case leading to penalties and damage to brand reputation
Opportunities	Threats
1. Accelerate the adoption of technologies in banking 2. Transition towards remote banking 3. Leveraging business Intelligence and data analytics	1. Impact of poor trading environment 2. Uncertainty in Eurozone and Brexit to slow growth

Detailed SWOT Analysis of Deutsche Bank

The prime objective of Deutsche Bank is to do banking business of all kinds. It particularly seeks to promote and facilitate trade relations between Germany, other European countries and overseas markets. The company applies high standards of ethics and integrity and strive to be a reliable partner to their stakeholders at all times. Therefore, the PESTLE/PESTEL/STEEPL analysis gives an overview of diverse macro-environmental factors like political, economic, social, technological, legal and environmental, that the banking major should thoughtfully examine. The PESTLE analysis is a useful technique to study the impact of influencers on Deutsche’s market strategy, growth trajectory, business model and business case study.
Deutsche Bank has a strong global network because of which it faces a lot of political tensions. A major political risk is the increase in tensions in the Middle East region which got highlighted through the U.S.- Iran military escalation of January 2020. Global economic changes are likely to have a strong impact on the business and growth of Deutsche Bank. Deutsche Bank faces considerable risk as it has dealing with a large number of Eurozone countries and has an aggregate exposure of € 48,338 to Greece, Ireland, Italy, Portugal and Spain. Deutsche Bank needs to balance its exposure and reduce sovereign risk to strengthen its balance sheet.
Through economic success and competitive international presence, Deutsche creates value for their shareholders, clients, employees and society at large while up holding stringent environmental and social norms to support a sustainable future. The banking and financial services industry has also seen a great number of positive changes owing to a greater use of technology. Deutsche values the diversity of our employees. The company support their talents and offer an attractive work environment that provides for the best possible work-life balance. Technology is expected to completely transform the banking industry in the coming years. Deutsche bank too has been investing in innovative technology like the Digital Trade Chain (DTC), a blockchain-based trade finance platform, which is expected to improve its performance. Organizations have to be careful with legal and regulatory framework of different countries. Banks have to be very vigilant with regards to money laundering and other financial crimes as these can result in major impacts within the global financial systems. Deutsche Bank has found itself being held negligent for the same in some case in the past which needs to be rectified. Environmental factors relate to ecological factors of the business. Deutsche bank is very customer oriented and this has made it even more essential for the bank to adopt sustainability in procuring its raw materials. The bank is now going a step further by investing as a financial intermediary in the development of renewable technologies. It also extends full support to clients who are attempting to become more sustainable.
The PESTLE analysis for Deutsche Bank is presented below:

Political	Economical
1. Compliance issues regarding political sanctions 2. Global trade disputes continue to weigh on the financial sector	1. Uncertainty in Eurozone and Brexit to slow growth 2. Risk in credit exposure to certain Eurozone countries
Social	Technological
1. Automation to impact employees in banking sector	1. Technology to be a key game-changer in banking industry
Legal	Environmental
1. Deutsche bank subject to severe penalty over role in subprime crisis 2. Negligence over money laundering 3. Impact of regulatory initiatives in banking	1. Promoting internal and external sustainability

Detailed Pestle Analysis of Deutsche Bank

Deutsche’s SWOT and PESTLE analysis report will offer the following:

• Employing the fundamental evaluation models, SWOT and PESTLE analysis to assess the internal and external factors and their consequences on the company’s micro and macro environment.
• The SWOT analysis is a structure, utilized to identify Deutsche’s competitive business stance and performance by recognizing its internal strategic factors like strengths and weaknesses, external strategic factors like opportunities and threats.
• Understanding the role of technology and the company’s core competencies in shaping Deutsche’s business and presenting the company with a competitive advantage over its competitors.
• The PESTLE analysis of the Banking industry helps to recognise its current trends that impact Deutsche’s business.
• The PESTLE/PESTEL/STEEPL Analysis for in-depth analysis of all external factors specifically political, economic, social, technological, legal and environmental, highlighting their consequences on Deutsche’s business model, marketing and growth strategy.
• Insights into Deutsche’s business diversification, deriving its key business segments and highlighting its major competitors.
• A complete illustration of Deutsche’s business model and business diversification with its influence in the global market.
• Analysis of the company’s USP or unique selling proposition, mission statement and vision statement.
• A sneak peek into the Deutsche’s key performance indicators, core values, success factors, value proposition and core competencies.