Citigroup expects to double digital-banking users in Asia in the next five years in order to improve revenue from the region without investing in setting up new branches.
The 7.5 million customers using Citigroup’s online and mobile-banking services in the region will probably grow to 15 million by 2019, bolstered by rising affluence and a burgeoning middle class, Jonathan Larsen, Asia-Pacific head of consumer banking at Citigroup, told Bloomberg in an interview.
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"Our strategy is essentially an urban strategy and it’s tapping into this new urban middle class that has been created in the last 30 years in Asia," Larsen said.
According to the publication, Larsen expects the number of outlets in Asia to stay little changed at 450 in coming years.
The US banking giant’s Asian consumer banking has 35 million customer accounts and the region contributed nearly 10% to the group’s $59bn revenue in the nine months to September.
In October, Citigroup announced plans to exit consumer banking in 11 markets including Japan and consumer finance in Korea to boost returns.
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By GlobalDataThe new structure will serve almost 57 million clients in 24 markets, half of which are in Asia.
