Citigroup is to invest between $3bn and $4bn in its US retail banking arm in a bid to grow mass-affluent customer numbers.
Manuel Medina-Mora, Citi’s north America head of retail banking, said the bank will cut costs and target an improvement in credit quality, to fund increased investment in infrastructure, hiring and marketing.
Medina-Mora told an investor conference on 17 November, that Citi would aim to build a new technology platform for online and mobile banking by the end of 2011.
While Citi was an early advocate of mobile banking, its percentage of customers regularly using its m-banking service has continued to trail sector leaders Bank of America, Wells Fargo and Chase.
Related
In a separate announcement, Citi announced plans to revamp its loyalty scheme in the US for retail partners.
An enhanced card loyalty service will include integrated branding and custom-designed consultancy services and programmes.
Citi has partnered with rDialogue, a customer loyalty and relationship marketing firm, to promote the initiative.
“In today’s environment, rewards and loyalty programs need to be as distinctive as our partners’ brands,” said Leslie McNamara, executive vice president, chief marketing officer, Citi Retail Partner Cards.
