Deutsche Bank has set up a subsidiary "startup" called Yunar, which will gradually build out a mobile wallet offering a host of services, beginning with loyalty scheme management.

The Yunar brand is a wholly-owned Deutsche Bank subsidiary with its own management, IT, a staff of 80 people, and, subject to approval, a ZAG licence enabling it to offer payment services.

The free app launched this week, initially focusing on making loyalty schemes easy to use, with customers able to collect points from up to 200 providers widely used in Germany However, Deutsche says that Yunar will be continually upgraded with new banking and non-banking services, functions and products - such as mobile payments, multibank aggregation and digital ID - until it becomes "the mobile wallet in the customer's pocket".

Part of Deutsche Bank's private and commercial bank digital ventures unit, Yunar is initially targeting a digital savvy demographic which traditional banks now find it very difficult to turn into regular customers. Markus Pertlwieser, chief digital officer, head, digital ventures business, Deutsche Bank, says: "This app will give a further boost to the expansion of our platform offering. Fresh ideas that make life easier for banking clients will be implemented faster in future, regardless of whether we act on our own or together with partners."