Deutsche Bank said that it has agreed a strategic, multiyear partnership with Google to give the German lender access to cloud services and drive innovation in technology-based financial products for clients.

A source familiar with the matter told Reuters that Deutsche Bank expects the partnership to generate more than 1 billion euros ($1.13 billion) in accumulated earnings before income and tax (EBIT) over the next 10 years. Both parties have signed a letter of intent and plan to sign a multi-year contract within the next few months, the bank said.

“The partnership with Google Cloud will be an important driver of our strategic transformation,” said Deutsche Bank Chief Executive Christian Sewing. It demonstrates our determination to invest in our technology as our future is strongly linked to successful digitization. It is as much a revenue story as it is about costs.”

Earlier this year, Deutsche invited bids from Google, Microsoft and Amazon to overhaul the bank’s outdated and fragmented technology networks. The deal is part of a 13 billion euro ($14.70 billion) technology investment Deutsche has planned up to 2022 as it restructures to recover from years of losses.

 “The partnership with Google Cloud will be an important driver of our strategic transformation,” said Deutsche Bank Chief Executive Christian Sewing. It demonstrates our determination to invest in our technology as our future is strongly linked to successful digitization. It is as much a revenue story as it is about costs.”

The bank, Germany's biggest lender, has prioritized a revamp of its infrastructure as it seeks to cut costs. Almost exactly a year ago in July 2019, it announced plans to cut its workforce by 18,000 - equivalent to a fifth of its workforce. But the bank also pledged to invest €13bn on new technology over the next four years.

Much is likely to be made of the co-development part of the deal with Google Cloud and Deutsche has referenced the fact it will gain access to the data science, AI and machine learning capabilities of its new partner. Potential use cases include cash flow forecasting and risk analysis for treasury clients and digital services for the private banking business.  The deal is also a success for Google which managed to beat off competition from Amazon and Microsoft in a three-month tender process that began in February.

Source- Reuters