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Deutsche Bank CEO steps down

Deutsche Bank chief Josef Ackermann officially stepped down on Thursday, ending a decade-long reign as head of Germany's biggest bank during which he repeatedly courted controversy.

Deutsche Bank CEO steps down
Photo: DPA

At the end of Deutsche Bank’s annual shareholder meeting at Frankfurt’s huge Messehalle exhibition hall, Swiss-born Ackermann, 64, handed over the reins to his two successors, Anshu Jain and Jürgen Fitschen.

“It is a very special day for me, a day with a touch of sadness, but above all with pleasure,” Ackermann said.

The outgoing chief executive insisted Deutsche Bank was “even stronger and more stable than it already was” and he said he was pleased to be able to “hand over this bank in such outstanding shape to my successors.”

While for many Germans, Ackermann personifies the arrogance and greed of the banking sector, he is widely respected in financial sectors for transforming Deutsche Bank into a truly global player during his 10 years in office.

Ackermann successfully steered his bank through the 2008 global economic and financial crisis without any major mishaps when he was acting as unofficial advisor to Chancellor Angela Merkel and her then finance minister Peer Steinbrück.

New leaders Jain, a 49-year-old British citizen of Indian origin, and the 63-year-old German Fitschen will press ahead with the internationalisation of Deutsche Bank without ignoring German sensibilities. They will also have to reassure shareholders, customers and markets.

Jain is a high-flying investment banker from London and, with no spoken German, very much personifies the international or “Anglo-Saxon” way of doing business.

Fitschen, with his intimate knowledge of the German corridors of power, will be responsible for reassuring and maintaining the confidence of the bank’s major domestic clients.

Together with Deutsche Bank’s new supervisory board chief Paul Achleitner – former chief financial officer of insurance giant Allianz – the new leadership have much to do to polish up the group’s image.

Its reputation has become somewhat sullied in recent years by a string of different legal battles, but also perceptions that some of its areas of activity – such as foodstuffs speculation and business ties with makers of cluster munitions – were not always ethically acceptable.

But Ackermann reassured shareholders that Deutsche Bank had since “terminated our business relations with companies who – even indirectly – are involved in the manufacture of cluster munitions.

“We are also very carefully investigating accusations that our operations contribute to hunger around the world. Should this be confirmed, we will draw the appropriate consequences here too.

As a precautionary measure we have already decided for the time being not to issue any new exchange-traded investment products based on basic foodstuffs,” he said.

Observers appear to believe the new joint chiefs are up to the job. “Here in Germany, Fitschen has an excellent reputation. He will do everything so that Deutsche Bank fulfils its role as financier of the German economy.

In tandem with Jain, they should make a good team,” said the head of the DIHK Association of German chambers of industry and commerce, Hans Heinrich Driftmann.

AFP/jcw

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Cashless Switzerland: What is Twint and how does it work?

If you live in Switzerland, you are likely no stranger to Twint and maybe even use it regularly to make and receive payments. But if you are not familiar with this app, this is what you should know.

Twint app can be installed on a mobile phone.
“Twinting” money with a smartphone is easy and convenient. Photo by Andrea Piacquadio from Pexels

In Switzerland, the word “Twint” is used both as a noun and a verb.

As a noun, it describes the mobile application which allows you to pay for various goods and services practically everywhere in the country.

As a verb, (“to twint”), it means to send someone money, or receive it, via the same app.

So what exactly is Twint?

Simply put, it is digital cash (not to be confused with bitcoin, which is digital currency) that was first introduced in Switzerland in 2014 and has become very popular since then.

Twint logo. Image by Twint.ch

People like it because it is an easy and quick way to make instantaneous payments, especially in situations when credit cards or physical cash can’t be used.

A big part of its convenience is that it can be used at cash registers, vending machines and parking meters, as well as in online shops — pretty much everywhere in Switzerland, even in places that don’t accept credit cards.

The only similar mode of payment would be your maestro debit card issued by your bank.

This video explains exactly how the process works.

Another advantage of Twint is that you can use it to send money to someone else’s mobile phone — as long as they also have Twint. And you can receive money the same way.

And there are no fees or charges for this service.

How does Twint work?

Anyone can use Twint, but you need a Swiss bank account or a credit card and, of course, a smartphone.

According to Twint website, you need a smartphone with either an iOS (from version 12.2 and upwards) or Android (from version 7 and upwards) operating system and Bluetooth capability (from version 4.0 and upwards).

“It is generally not possible for Twint to be used on Apple devices with an operating system older than “iOS 12.2” or on Android devices with an operating system older than “Android 7”. On Android devices without access to the Google Play Store (e.g. on certain HUAWEI models), the use of Twint app is also not possible”.

But If you have a compatible phone, installing Twint is easy.

Swiss banks offer their own version of the app, and you can download it directly from your bank’s website.

Then, when you use Twint to make a payment, the amount is debited directly from your bank account or credit card.

By the same token, if you receive payment from another Twint user, the money is automatically deposited in your account.

And you are not limited to just one Twint app.

If you have accounts is several banks, or have more than one credit card, you can install and use all of them.

READ MORE: How to open a bank account in Switzerland

Can Twint be used to make payments and receive money from abroad?

For the moment, Twint can be used solely in Switzerland and payments can be made only in Swiss francs – although this may change in future. 

“We are, however, working closely with providers in other countries to develop an international and multi-currency solution”, according to Twint website.

You can find more information about Twint here.

READ MORE: Which bank is best for Americans in Switzerland?

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