Siemens aims to launch its own bank

Outside the car industry, the firm will be one of the first engineering companies to have its own bank

In an industry first after the global recession, engineering company Siemens is looking to set up its own bank.

Outside the car industry, the firm will be one of the first engineering companies to have its own bank. Other firms that have their own bank services include BMW and Volkswagen.

Many engineering firms have struggled to secure loans and funding for equipment and plant because of the tightening of credit from banks during and after the recession.

The Siemens bank aims to expand the product portfolio of its financial services unit, add “flexibility” to group financing, and “optimise” its risk management. 

Siemens said: “We wanted to enhance our financing. Many of our customers wanted to have not only our technical solutions, but needed the financing as well.” The initiative will also allow the company to work more closely with other banks to help cut costs. “It’s a minimisation of risk and low transaction costs,” said the company.

Siemens has applied for a licence from the Federal Financial Supervisory Authority in Germany. If the authority grants the licence Siemens could have its own bank later this year.