(22 January 2010 – Europe) Germany’s largest bank, Deutsche Bank, has acquired an eight percent stake in cross-border payment processor Eurogiro.The bank already has an existing relationship with the payments outfit, serving as an acting member of its board for the last ten years.
Eurogiro, which provides the world’s second largest network for cross-boarder payments with a focus on connecting postal organisations, post banks and other financial institutions, will benefit from the deal by gaining backing from a Tier One transaction bank and added financial security.
Deutsche Bank currently provides the payment processor with its US settlement services, which are currently being expanded to include multi-currency. The bank also receives added benefits from the deal, securing access to Eurogiro’s global access of postal banks and organisations.
The overall goal is to reach over two billion consumers worldwide by combining the banks market position in payments and cash management with Eurogiro’s retail and distribution power through the global postal network.
Paul Camp, head of cash management financial institutions, Deutsche Bank said about the deal, that becoming a shareholder in Eurogiro perfectly supports the bank’s global remittance initiative.
Mr Camp also added that clients would benefit from the existing product capabilities that are enhanced with Eurogiro’s reach and functionality, such as SMS advising. With minimal investment, global clients can earn additional revenues as well as attract and retain customers with a new and improved remittance offering.