Dresdner and Deutsche to create joint venture for payments

Deutsche Bank and Dresdner Bank, two of Germany's biggest banking rivals, have agreed to create a 50/50 joint venture into which they will bundle together their payments processing business.

The two banks - which have been discussing different options for sharing back office resources for years - believe there will be considerable cost reduction if they process their payments together. Payments processing is a largely commoditised business which benefits from economies of scale.

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