Q1: As private banks invest in upgrading their KYC systems and scaling AI capabilities, how are you addressing the operational challenges of integrating these technologies while driving measurable KPIs in revenue growth and delivering hyper-personalised client experiences?

When we combine “KYC” and “AI”, the revenue growth opportunities far outweigh the operational challenges!

We expect the implementation of reengineered account-opening and periodic-review processes, powered by a “multi-agentic AI with human in the loop” approach, to deliver a significantly better client experience. This can be measured through KPIs such as the number of days to open an account or the frequency of contact between the front office and the client. We also anticipate substantial time savings for our front office teams, which we expect to be redirected in large part toward revenue-generating activities.

To address the operational challenges, we rely on robust governance, significant efforts in change management for our staff, and a strong preference for an “incremental + pilot”  rather than a “big bang” transformation.

Q2: With regulatory requirements continually evolving, private banks are reassessing their compliance systems and processes. From an operational perspective, what are the biggest challenges you face in meeting these requirements, and how is the bank tackling them to maintain both efficiency and client trust?

Regional regulators have been actively issuing new regulations and guidance to help the industry address and contain emerging risks, such as cyber risks (including new external fraud scenarios, such as deepfake videos and advanced phishing) and AI adoption.

Regarding cyber risks, banks, including Deutsche Bank, must continually evolve and adapt to keep pace with external threats and emerging scenarios. This requires sustained investments in infrastructure, but client and internal education remain equally critical.

For the internal adoption of AI, the key ingredients to mitigate associated risks include strong governance with a dedicated control framework and a clearly defined risk appetite, ongoing employee education, and a “human in the loop” approach to ensure appropriate checks and balances.

Q3: The cost-to-income ratio is a key metric for assessing bank performance. What range do you consider optimal, and how is the bank managing the cost side—across investments, real estate, and other operating expenses—to maintain efficiency and competitiveness in the region?

Banks have different setups and definitions of cost-to-income ratio, but in general, the ambition for an international private bank operating in the region should be to stay below 70% mark at this point. Our group aims to achieve below 60% by 2028, and we are contributing our part, including through investing to grow revenues.

On the cost side, our measures are focused on becoming more scalable. In particular, we are prioritising automation and process simplification while remaining within risk appetite, impactful AI adoption (e.g. active rollout of Copilot to employees and reengineering of processes leveraging AI), greater use of global initiatives, and stronger collaboration across departments to eliminate duplication and leverage the most efficient available solutions.