Deutsche Bank is working on setting up joint innovation laboratories with technology firms IBM and Microsoft and India’s HCL Technologies to improve its digital banking operations and fight-off new market entrants, people familiar with the matter said.

Germany's largest lender and its partners plan to set up their labs in Berlin, London and Palo Alto and cooperate with Internet start-up firms, the people familiar with the matter said. The goal is to send bankers from across all business units to these labs to gain insight in how to enhance clients' experience or internal processes.