Citigroup has unveiled plans to invest $1bn in its Mexican unit Banco Nacional de Mexico (Banamex) for upgrades to its technology and branches and also rename the Mexican business as Citibanamex.

The investments, expected to be completed by 2020, will be aimed at five areas, namely digital banking; technology platform upgrades, branch upgrades, installation of new ATMs, and developing targeted solutions for key customer segments.

The funds will be used to create a virtual banking experience in Mexico; increase the bank's focus on cloud-based solutions; optimise its payments infrastructure; and improve process automation.

The investment will also support the creation of digital branches equipped with smart banking technology, with majority of the first 100 digital branches to be launched in Mexico City, Guadalajara and Monterrey.

The bank will add 2,500 new ATMs, of which 1,500 will offer expanded set of services such as check deposits and payments.

At the same time, Citibanamex will improve its offerings for diverse customer segments such as priority customers, small and medium business clients, corporate clients, as well as will introduce a financial inclusion area for those who previously had no access to traditional banking services.

Citigroup CEO Michael Corbat said: "Citibanamex has and always will be the Banco Nacional de México.

"These investments in Citibanamex reaffirm our commitment to Mexico and our confidence in its prospects. Our goal is nothing less than to create a state-of-the-art bank in Mexico, fully focused on delivering a richer, smarter, more intuitive experience to everyone who does business with us."

The latest investment is in addition to Citi's 2014 commitment to invest $1.5bn in Mexico.

Citibanamex has a network of about 1,500 branches and more than 7,500 ATMs, serving over 20 million clients.