Thank you very much, Javi, for the very kind introduction. Good morning everybody in Frankfurt. Great to see you. It's a pleasure that you are all here in this wonderful city today. The last time I spoke at Sibos was actually in 2019 in London, and I still remember the energy, the ideas, and the sense of shared purpose at that record-breaking event. It's great to see the same spirit alive in 2025, and it's a privilege to stand in front of so many delegates who have come to Frankfurt, the financial capital of continental Europe and Deutsche Bank's headquarters. It's great what kind of agenda you have. Watch out for Thursday when Jürgen Klopp is visiting you. Actually, a great guy. But the real deal is Saturday. You need to stay to Saturday. Frankfurt plays Bayern Munich. There will be 60,000 people in this wonderful stadium. The stadium is, by the way, called Deutsche Bank Park. If you need tickets, go to our communications department. I'm out of this. And you see the best two clubs in Germany in the best stadium. I'm not telling you who I favor because that doesn't come good in this town.
Ladies and gentlemen, it's an honor to follow the fireside chat between Javier and Karim. Their insights into the evolving financial landscape, both from a global infrastructure and central banking perspective, provide a strong foundation for the conversations ahead this week. Let me start by thanking Swift for continuing to lead the dialogue in our industry with both vision and commitment. Under your leadership, Javier, Swift has not only embraced transformation but helped to drive it across the industry. The innovation agenda you just outlined is a compelling proof of that, and congratulations on the announcement this morning. Swift serves as a foundational pillar of the financial industry, enabling seamless and secure operations across payments, trade finance, and securities. A platform whose impact is both profound and indispensable.
When I came to Sibos six years ago, Swift's brand was relatively modest. But as payments have increasingly become a geopolitical instrument, particularly in the context of global sanctions, it has moved into the spotlight. At the same time, the transaction banking industry is undergoing a rapid transformation towards digital finance. In this environment, Swift's role as a central conduit for innovation is not only welcome, it is essential for all of us. The organization's ability to adapt swiftly and decisively to changing conditions is a testament to its relevance and resilience. Equally impressive is Swift's evolution and the remarkable platform you have built with Sibos. This is so much more than just a conference. Nearly half a century after it started, Sibos now stands as a global platform for collaboration, a place where the financial industry comes together to challenge assumptions, explore innovation, and shape the future. In a world changing faster than ever, this is more than vital.
Looking back at what has happened since my last visit in 2019, the scale of recent shifts becomes very clear. We have seen unprecedented volatility driven by global crises and conflicts. The COVID-19 pandemic and the Russian war of aggression shattered certainties that held for decades. Global trade has taken on a darker tone. Much like geopolitics, confrontation now dominates where cooperation once prevailed. Meanwhile, technological development has accelerated dramatically, especially with the rise of artificial intelligence. And we all know AI will be a game changer, though we still lack the imagination of what and how it will grasp.
In this world shaped by geopolitical tensions, technological disruption, and economic uncertainty, the role of banks has evolved profoundly. We are no longer just lenders of financial projects. We are strategic partners helping reshape entire economies. We act as infrastructure providers, risk managers, technology investors, and sustainability partners. We connect markets, bridge regulatory systems, and enable the flow of ideas, goods, and capital across borders. In short, banks have become the connective tissue of a hyperconnected economy. And in my view, banks have become part of the solution. It's our responsibility to build on that.
This applies especially to Europe. The continent strengthens its relevance as a key player in global finance, thanks to its strong infrastructure, global trade relationships, and leadership in setting international standards. The fact that Sibos is taking place here in Frankfurt this year, the financial epicenter of continental Europe, is a clear testament to the vital role continental Europe can play in shaping the future of our joint industry. We should see this as a reminder to resolutely address the shortcomings we still have: our tendency in Europe to overregulation and the relative weakness of our capital markets, as you just heard from Karim again. And of course, I cannot ignore the challenging economic situation we all live through in Europe. Years of sluggish growth have left deep marks. Europe has fallen behind due to structural inertia. Shifting global trade patterns hit Europe's export-driven industries hard. Excessive bureaucracy continues to stifle innovation. European integration has stalled, and we have seen chronic underinvestment in many future-critical areas, especially in technology.
But this is not a story of decline. It's actually a call to action. Europe is a continent with great potential: top-tier companies, leading research institutions, and highly skilled professionals. Europe stands for something else: unique liberal values and a high degree of political stability. With its clear commitment to free trade, it has the potential to become a driving force of a different but continued globalization while others turn toward isolation. The key to reactivating this potential lies in tackling long-overdue structural reforms, both in Germany and in Europe. The political will for change is there. We can feel it every day, and it's stronger than it has been in a very long time. Now it's time to turn words into action. That action must be backed by large-scale investment.
Which brings me to the role of us, the banks. You may be familiar with the 800 billion euros Mario Draghi cited last year in his report — the investments needed to get the EU future-fit for the years 2025 to 2031. Actually, Mario recently raised that figure to annual investments of 1.2 trillion. And there are plenty of other figures circulating. The crucial thing is that these amounts cannot and should not be financed by the state alone. What is needed is private sector involvement. We as banks have the responsibility to either finance these investments directly or build the bridges across capital markets between investors and the companies seeking the necessary capital. With our global networks, we can channel capital flows into Europe and accelerate investments into future-oriented sectors like AI, green tech, technology, and of course defense. In other words, banks are called upon to actively shape the economic renewal of Europe. If we make the right decisions now, banks can become the driving force behind a new era of growth for Germany, Europe, and a globally connected economy.
The prerequisite for this is that we as banks are 100% robust and fully operational, allowing us to focus entirely on the most important thing we have: our clients. In recent years, especially here in Europe, we have made excellent progress. Ladies and gentlemen, we are far more resilient, secure, and profitable than we have been in decades. This has enabled us to guide our clients effectively through the crises that marked the start of this decade. However, we must not rest for a second, because just as the world around us is changing rapidly, banking too is undergoing profound transformations that will only accelerate over the next years. Let me highlight four key challenges.
First, geopolitical challenges will lead to significant shifts in value chains and trade patterns, forcing us to continuously review and redefine our positioning and processes. Second, we must expect the regulatory environment to further diverge across regions and among banks and non-bank competitors, leading to greater fragmentation and complexity, and most likely more competitive disadvantage for Europe. Third, competitive pressure will increase from all sides, not only within the industry but also from outside. As client preferences and flows shift, our role as intermediary will be increasingly challenged. Fintechs, big techs, and other specialized platform providers are entering traditional banking sectors, seeking to capture significant shares of revenue pools by owning the client interface. Fourth, the growing importance of technology, especially through AI, is accelerating competition, particularly as customer loyalty towards banks continues to decline. That's why going forward, a first-class and seamless customer experience will be more crucial than ever. No bank can afford to fall even a single step behind the competition in this area.
These are overarching issues that every bank must address. Of course, there are many other topics that vary by business area, but these four are decisive.
Looking at transaction banking, which is front and center here at Sibos, there is one general trend that should give us all confidence: the ever-growing volume of payments and trade transactions. According to McKinsey, the revenue pool in transaction banking grew 7% annually from 2018 to 2023 and will continue to grow. A second piece of good news is that compared to other areas in finance, the speed of disintermediation is expected to be slower in transaction banking due to operational and regulatory complexity, infrastructure requirements, and the importance of a strong global network. However, that does not mean the pressure to change is any less intense. There are still numerous factors reshaping the face of transaction banking. My personal top 10, not in particular order, are the following:
One: real-time everything. Whether payments or liquidity management, clients expect 24/7 availability and instant execution across entities, regions, and currencies.
Two: ISO 20022 migration. New messaging standards will reshape data usage and sharing, enabling automation, efficiency, and interoperability.
Three: digitalization and automation of trade finance — the full phase-out of paper and the rise of digital identities and smart contracts.
Four: APIs and open banking in B2B, enabling real-time integration between corporate systems and banks.
Five: cross-border payments reinvention, still seen as slow, expensive, and opaque, but evolving rapidly.
Six: cybersecurity, compliance, and resilience. An evergreen topic, but potentially more important than ever due to the geopolitical situation and sophisticated fraud. Banks must step up investments, especially in AI-driven solutions.
Seven: AI and advanced analytics. Use cases include cash flow forecasting, smart reconciliation, client behavior analysis, and more.
Eight: sustainable transaction banking. ESG is moving into cash and trade. Think sustainability-linked supply chain finance, green trade finance, or carbon footprint tracking in payment flows. This is not just about regulatory pressure; green finance offers major business opportunities, particularly for us in Europe, and smart banks are investing in it. Our clients expect nothing less.
Nine: digital assets. Whether we talk about tokenized deposits, stablecoins, or CBDCs, which were just covered in the conversation, beyond the hype there is a truly exciting field that will see a lot of movement in the coming years, one that could reshape the payment landscape and global currency regime significantly. The transformation is already underway in market dynamics and regulatory processes. Tokenization of real-world assets is expected to grow to around 19 trillion US dollars by 2033, driven by funds, real estate, and stablecoins. At the same time, the past 18 months have marked a turning point as regulators move from uncertainty to clarity, creating a more trusted and scalable environment for innovation. For banks, this opens new opportunities to play a key role in shaping the infrastructure and trust layer of the digital asset economy. Let me add: we banks in Europe are in principle open to the concept of a digital euro, but we strongly recommend building it in close cooperation with financial institutions and using existing platforms, not different ones. Clients will not like fragmentation.
Ten: last and certainly not least, client centricity and customization. Clients demand tailored solutions, not one-size-fits-all products. Our task is to create modular, configurable platforms that make this possible.
On all these topics, you will find more than enough information over the next few days here at the conference. My key point is this: we cannot afford to fail on any of these issues. Our continued relevance as banks depends on our position in the payment ecosystem. But even more important than our own success is our responsibility for the lasting success of our clients and the development of the broader economy. In this regard, let's be clear: transaction banking is not boring. Transaction banking is not a backstage function. It is the engine of global commerce, the enabler of real-time, secure, and sustainable value exchange. From SMEs navigating cross-border trade to corporates optimizing treasury through APIs, we are shaping the infrastructure of the global economy and contributing to growth and prosperity. That is precisely why we must not relent in our pursuit of even better offerings for our clients.
Ladies and gentlemen, in my view, transaction banking is at the heart of every economy. That's what you are doing all day through. As we drive innovation and shape the infrastructure of the global economy, one element remains foundational and fundamental to our mission: trust.
I recently had the pleasure of welcoming Jim Hagemann Snabe, chairman of the supervisory board of Siemens, former co-CEO of SAP, to a live conversation with our employees globally. It was a fantastic discussion, but one item from that talk was remarkable. I asked Jim, 'Which institutions do you trust most?' His answer: 'Family, good friends, and banks. You only give your finances to someone you trust.' He added, 'This trust is not a given. It's earned day in, day out through every decision we make.' It is the foundation upon which all progress is built. It is the role of leading institutions like Deutsche Bank to lead with trust. In a world of increasing volatility, complexity, cyber threats, and various other items, banks must remain the most secure and compliant part in the financial value chain. It is not enough to deliver cutting-edge solutions or seamless connectivity. We must also ensure that every interaction, every transaction, every partnership is anchored in reliability, security, and most importantly, integrity.
Security must never be confused with being resistant to change, though. True resilience embraces transformation. Each of us has a responsibility to think beyond borders. Our clients don't see the world in silos, and neither should we. At Deutsche Bank, a global mindset has not only been part of more than 150 years of history; it is our compass for the future, firmly anchored in our global housebank strategy. We also know that the future of banking and transaction banking will not be shaped in isolation. It will be shaped by collaboration, shared ambition, and the courage to challenge the status quo, always in a constructive way. That's why gatherings like Sibos matter so much. This is where the industry comes together to set the agenda for the future of transaction banking. It's where ideas become action, where innovation meets scale, and where trust is translated into partnership.
So, let's use this week in Frankfurt not only to share insights but to forge the partnerships that will define the next decade of global banking. Let's build together. Let's create the future and please together. Thank you very much.
