1

CITIBANK’s e-business

By:Parvin NovruzovRichard Afolabe ChinweRohit Anand

2

a brief overview• Founded in 1812 as the City Bank of New York• As of March 2007, it was the largest bank in the

United States by holdings.• Mission of CITIBANK:

3

The Global environment

• Customers getting knowledgeable and smarter day by day.

• The INTERNET• Demands for sophisticated e-business solutions.• Interest of middle market companies in online

services.

Competition:• Performance pressure on banks.• Turbulent financial condition.• The race to become the first solution provider in

the industry. (Eg. Deutsche Bank).• TECH companies providing similar solutions.

4

CITIBANK: The main businesses• Transaction services.• Corporate finance services• Treasury market services

Clients:• MNC’s, financial institutions, government

sectors, local corporations etc

CITIBANK’s core competence:• Provision of a full range of services for the

corporate clients.• CITIBANK differentiated itself through customer

service and high investment in technology.

5

e-business: What it is??

6

Citibank’s E-Business Strategy

• Serving people by creating efficiencies and opportunities through e-commerce is Citibank's main aim

• Vision: to become the world’s leading e-business enabler (delivering online transactions worldwide)

• E-business strategy: connect, transform and extend

7

CONNECT

• Goal: customer convenience • Provide client more channels to access Citibank

and become flexible to meet demand• Web-enabling current services• Build an infrastructure as a foundation for all

services (Citidirect- corporate customers)

8

TRANSFORM• Workflow automation: new systems to manage

automatic processing of transactions• Advantages of regionalized processing

centers:reduction cycle time transactions, secure databases, minimize error rates and new efficiencies for customers and employees.

• Online and real-time processing, direct access to information for customers and employees, efficient working, cost savings, and comfort for customers.

• USP: excellence in processing business transparency of the process for customers

9

EXTEND

• Building a global infrastructure and deliver eproducts quicker and more efficiently.

• Capability improvements in one region and deploying in other regions.

• Enhance system according to changing customers needs.

• Moving customers from using Old-style electronic banking to Citidirect (difficult process because of customers security concerns)

10

Benefits and Challenges:

• Benefits: System and process improvement will result in high

profitability. Considering the increasing customer awareness

and the simplification of operation, the strategy can increase the customer base.

• Challenges: High investment required. Adaptability- The frequent changes. Extension in the competitive world.

11

• True global organization• Adequate financial resources • Market pioneer &leader• Self motivated & most competent

managnt• Experienced & well-equipped

verification department• Having highest brand equity• Positioning

• Less mutual understanding of sales team

• High markup rate

• Tag of long process• Comparatively low loyalty

• Extending the current market or opening the segments

• Developing new better alliances with new better insurance companies

• Opening the new sub offices in the surrounding areas

• Likely entry of new competitors• The growing technology costs• The power of buyers

SWOT ANALYSIS

12

STEEP ANALYSIS

13

PORTOR’s five forces and its relevance

14

Conclusions from the case:

• The internet importantly affected banking sector• Technology changed customer expectations. This

improvements are challenges in banking sectors• Citibank successfully responded to this changes

with:• Web enabling Access points • Building a new global infrastructure• Integrating products in new way

15