The economic sector has always been driven by the growth of companies. Companies evolve and develop their activities through partnerships, collaborations and contracts. When the need arises, other companies merge to create a new start-up in which they are shareholders. This is what Deutsche Bank and Fiserv have just done by creating a joint venture.
The banking company Deutsche Bank has joined forces with the company Fiserv to create a joint venture to meet a specific need. The purpose of the joint venture is to establish a banking solutionsprovider that will be able to accept payments in parallel.
Specifically, the joint venture will be available to small and medium-sized enterprises (SMEs) within the German market. It will enable SME customers to implement the ideal strategy to adapt to the changing market environment after the health crisis. To accomplish this, the joint venture of Deutsche Bank and Fiserv will equip these SMEs to sell their products and services properly.
They will sell their products through a full range of digital channels. The joint venture will also use state-of-the-art payment acceptance solutions.
Deutsche Bank and Fiserv's plan is to bring together several payment solutions at once. They will complement Deutsche Bank's banking offering. The two groups involved in this creation will also be responsible for bringing a unique combination to the market. The advantage of such an arrangement for merchants is that they will not have to sign numerous contracts with different payment institutions.
In addition, the new company is headquartered in Frankfurt am Main.
Deutsche Bank has been the largest bank in Germany since it was founded in 1870. It has subsidiaries in 75 countries, the most important of which are in Singapore, New York and London. The group made a net profit of 908 million euros from its business in the first quarter of 2021. Also, it should be noted that it was making a loss of 43 million euros in Q1/2020.
This is a record figure that the group has not achieved since Q1 2014. This increase in activity is explained by the increase in revenues generated by bond trading and advisory activities.
Fiserv is a company that brings payment technologies to the global market. It also offers financial services. The company earned $3.76 billion in GAAP revenue at the end of its first quarter 2021. A flat performance compared to the first three months of the previous year.
The group posted earnings per share of $0.45 in the quarter. This corresponds to a 21% level decline compared to Q1/2020. Its business generated an operating margin of 12.6% compared to 16.7% a year ago. Meanwhile, operating activities generated cash flow up 7% to $952 million at the end of Q1/2021.