Citi bank’s global strategies and presence in India

History

Citi never sleeps

• Founded in 1812• Headquarter in New

York,USA• Parent Citigroup • CEO-Micheal Corbat• Chairman-Micheal

E.O’Neill• According to Forbes

global 2000 Citigroup is on 19th rank.

• Citibank is the consumer banking division of financial services multinational Citigroup.

• Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York.

• As of March 2010, Citigroup is the third largest bank holding company in the United States by total assets, after Bank of America and JPMorgan Chase.

• By 1868, it was considered one of the largest banks in the United States, and in 1897, it became the first major U.S. bank to establish a foreign department.

• When the Federal Reserve Act allowed it,National City became the first U.S. national bank to open an overseas banking office when its branch in Buenos Aires Argentina, was opened in 1914.

• Citibank is a global bank with 3,777 branch locations in 36 countries.

• The United States is the largest single market with approximately 26% of branches, generating 51% of revenues.

Citibank India

• Citibank India is an Indian private sector bank headquartered in Mumbai, Maharashtra.

• Currently,Citigroup, the owner of Citibank India, is the largest foreign direct investor in financial services in India with a total capital commitment of approximately US$ 4 Billion in its onshore banking and financial services business and its principal and alternate investment programmes.

• Citi operates 42 full-service Citibank branches in 30 cities

• Citi India added two green certified buildings to its office premises in 2012 and in 2013, moved its headquarters to The First International Financial Centre (FIFC), a world-class environmentally friendly building

Products and services

How Citigroup started with its Products

• In the 1960s the bank entered into the credit card business

• By 1968, the company created its own credit card. The card, known as "The Everything Card“

• John S. Reed was selected CEO in 1984. Under his leadership, the next 14 years would see Citibank become the largest bank in the United States, the largest issuer of credit cards and charge cards in the world, and expand its global reach to over 90 countries.

• Citibank was one of the first U.S. banks to introduce automatic teller machines in the 1970s, in order to give 24-hour access to accounts.

• In August 2004, Citibank entered the Texas market with the purchase of First American Bank of Bryan, Texas. The deal established Citi's retail banking presence in Texas, giving Citibank over 100 branches, $3.5 billion in assets and approximately 120,000 new customers in the state.

• In April 2006, Citibank struck a deal with 7-Eleven to put its automated teller machine (ATMs) in more than 6,700 convenience stores in the United States.

• Citi offers consumers and institutions a broad range of financial products and services, including

• consumer banking and• credit, corporate and investment banking, • securities brokerage, and• wealth management.

• Citi Launches the CitiManager® Mobile Site for Commercial Cardholders Citi commercial cardholders can now easily view statements, recent activity

and balances on their accounts wherever they are in the world

CitiManager Mobile is accessible in 22 languages

• Asset products like Personal, Home and Auto loans^ at a special relationship pricing and minimal/zero processing fees

• Citibank Stock Power - Get up to 50% of the value of select shares and Mutual Funds^^ for acquiring an asset or for any personal requirements

• Citibank International Account - Open an account in a foreign currency as a Resident Indian

• Forex & Trade Services** - Enjoy high speed remittances across currencies, hedge tools - forwards & options, Export / Import document processing with fast turnaround, Issuance of Letter of Credits (LC) and Bank Guarantees (BG) against non-fund lines as well as cash collateral for both domestic and international business and Credit Bill Negotiation (LC discounting)

• Citibank operates in over 100 countries globally and it is one of the most successful banks in the world.

• The economic crisis of 1990 caused by the Gulf war and other financial crises in many Asia countries affected the banks’ performance.

• This made the bank to change it corporate, business and marketing strategies in order to ensure sustainability of the bank and also to beat its competitors.

• It also engaged in the introduction of e-commerce and e-business strategies to introduce new products into the markets and it also expanded its operations to other areas such as wealth management, stock broking and financial trading services.

New Strategies of Citibank• Bank initiated better organisational vision and mission

statements.• Adoption of new e- business and e-commerce marketing

strategies through new marketing development systems such as online internet services.

• Citibank’s new vision is to become the world’s leading e-business enabler.

The outline of the strategy formulation technique

Creation of Citibank’s E-business VisionFirst step was the initiation of E-business idea and creation of e-business vision mission statements.

Citibank‘s vision is to become the leading enabler of e-business through empowerment of local, regional and global customers and

business-to-business-to-consumer (B2B2C)

The mission includes the management of the overall costs of its Information . Technology (IT) investments, optimal usage of the

existing and new technologies, and standardisation of its application and development processes.

Transform

Connect

Extend Reach new markets, new customers and

new products

Draw the full range ofCitibank’s capabilitiesto deliver integrated solutions

Web-enable its core services to connectwith its customers

The Formation of the Internet group• In 1999, Citibank launched a CitiDirect Online Banking

which was the e first Citibank’s multi-product in a multi-geographic Internet banking system.

• Citibank e-business unit was formed in year 2000 with the management’s group decision to aggressively develop Internet-based products.

• The e-business solution was continuously developed and researched through 2001 and 2002.

• The then CEO, John Reed started the E-Citi initiative for exploring the Internet opportunities

Strategies implementation for its e-business environment

• E-structure services such as clearing, trading, and collections which allowed customers to acquire information rapidly than the traditional paper base processes.

• Objectives was to assist corporate customers to gain greater control over financial positions locally and internationally while increasing business efficiencies and reducing costs.

• Citibank created a global online investment that was secured, and web-based which allowed customers to access a variety of short-term investments using the award-winning , web based electronic banking platform.

Creation of culture and values of multidisciplinary teams

• They broke the old bureaucratic culture that existed. • formed collaborative infrastructures and worked by

coordinating themselves so as to fulfil the objectives of the e-commerce goals

• Shared understanding and knowledge- The multi-dimensional teams work through sharing of knowledge and resources in applying best practises in the implementation of e-commerce strategies

• Creation of forums as channels for effective communication

Citibank Alliance strategies• Prior to 2000, all forms of e-business strategies

implemented by Citibank had failed because the huge investments in IT

• From 2000, the bank then focused on creating strategic alliances.

• The bank formed partnerships with companies that had strong technologies, systems and infrastructures with good access to the markets . For eg: oracle, Commerce One Inc, SAP AG, Wisdom Technologies and Bolero.Net.

• The major breakthrough of the partnership was the Citibank’s alliance with four IT technological companies to form Financial Settlement Matrix.com, which connected buyers and sellers in e-market places.

Acquisitions of Information Technology and Electronics Company

• Another strategy was the acquisition of some IT and electronics company in order to enter and breakthrough the existing e-commerce marketplaces.

• Citibank acquired Lava Trading.• This was to enhance Citibank’s existing infrastructures and

platforms and it was able to integrate a robust electronic trading systems in its services complemented with the technologies of the acquisitions.

Commitment to engage in continuous technology development

• Since 2000, Citibank has been active in engaging in the continuous development of the IT and e-business sector so as to gain maximum customer satisfaction and gain market leadership through the optimisation of IT systems and structures.

• Citibank offered an array of integrated investment options through multiple channels including automatic orders, branch services, and online services.

• Citibank offered internet services, telephone banking, and customer relations managers gave individual attention to customers and service experts.

• Citibank formed strategic partnerships with reputable information technology and e-solutions provider companies such as Oracle, Commerce One Inc., SAP AG, Wisdom Technologies and Bolero.net in order to improve and consolidate its e-business strategies.

• World Link services enable cash payments to be made in more than 135 countries through the cross-border Automated Clearing House (ACH), cheques and electronic funds transfer.

• New touch screens automated teller machines (ATM), cash acceptance machines as well as quick deposit machines which gives receipts when deposits are made and this reduced queues in the banks

• The bank has been able to adjust to various political environments due to its ability to adapt to different policies and banking systems that are set up by those countries

• Risk management and legal compliance were introduced as priorities in year 2008 for all the banks and Citibank adjusted its banking operations so as to reduce all the operational risks across its banking operations

Citi Smart Banking.

• Customers can see market information on wall displays and even get customer service via video chat. Citi believes that, in the future, successful banks provide customized value to clients in the simplest way.

• Citi’s on-the-go mobile app offers an engaging mobile banking experience.

• Citi pioneered the concept of paying interest on every saving account, even small ones. This encouraged everyone, no matter how modest their income, to open savings accounts.

Citibank Global

Facts about the company

• As of December 21st 2010,the company has approximately 200 million customer accounts

• Business in more than 160 countries(2010)

• Total Employees 2,60,000(2010)

• Revenue-US$86.601 billion (2010)