Citibank

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understanding the marketing strategies of Citibank

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Citibank

  1. 1. A PROJEC REPORT ON SUBMITTED TO: SUBMITTED BY: Prof. Sriram Rajann Lovely Chauhan IBS Hyderabad 12BSPHH011233
  2. 2. i. ACKNOWLEGEMENT I take this opportunity to convey our sincere thanks and gratitude to all those who have directly or indirectly helped and contributed towards the completion of this project . First and foremost, i would like to thank Prof.Sriram Rajann for his constant guidance and support throughout this project. During the project, we realized that the degree of relevance of the marketing strategies being imparted in the industry is very high. The marketing strategies study enabled us to get a better understanding of the nitty –gritty of the company. I would also like to thank my batch mate s for discussion with them. All these have resulted in the enrichment of our knowledge and their inputs have helped us to incorporated relevant issues into our project .
  3. 3. TABLE OF CONTENT  Acknowledgment 1. Introduction of Banking System in India...........................................................................4 2. Introduction of Citibank ....................................................................................................6  Timelines of Citibank..................................................................................................6  Brand stories.................................................................................................................8 3. Structure of the corporate manaagement team along with principal marketing executives and brand managers............................................................................................13 4. Citibank portfolio...............................................................................................................20 5. Citibank Segmentation, targeting & positioning..............................................................................................................................34 6. Advertising agencies associated with Citibank..............................................................47 7. Application of porters five forces &swot analysis...........................................................49 8. Costing analysis of Citibank.............................................................................................55 9. Brand ambassadors of Citibank and their profiling.......................................................57 10. Citigroup repositioning...................................................................................................62 11. Competitors Analysis.......................................................................................................64 12 Recommendation for the brand to achieve TOM(top of mind )...................................68 13.Bipliography......................................................................................................................69
  4. 4. BANKING SYSTEM IN INDIA I INTRODUCTION The Reserve Bank of India (RBI) Is India’s central bank. Though the banking industry is currently dominated by public sector banks, numerous private & foreign banks exist. India’s government-owned banks dominate the market; their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, & in some the governments either already has or have plans to offload a chunk of its equity capital. Banking India has an extensive banking network, in both rural & urban areas. All large Indian banks are nationalized, & all Indian financial institutions are in public sector. INDIANBANKINGSYSTEM The banking system has three tiers. These are the scheduled commercial banks; theregional rural banks which operate in rural areas not covered by the scheduled banks; andthe cooperative and special purpose rural banks. PRIVATEANDFOREIGNBANKS The RBI has granted operating approval to a few privately owned domestic banks, of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic & political bilateral relations. An inter departmental committee approves applications for entry & expansion. CAPITALADEQUACYNORMS Foreign banks were required to achieve an 8% capital adequacy norm by march 1993,while Indian banks with overseas branches had until march 1995 to meet the target. All other banks had to do so by march 1996 .The banking sector is to be used as a model opening up of India’s insurance sector to private domestic and foreign participants , while keeping the national insurance companies in operation RESERVE BANK OF INDIA SYSTEM The reserve bank of India is the Central Banking Institution. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the government’s monitory policy. It is also responsible for granting licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India. SCHEDULED AND NON-SCHEDULED BANKS There are approx. 80 scheduled commercial banks , Indian and foreign ; almost 200regional rural banks ; more than 350 central cooperative banks , 20 land development banks , and a no. of primary agricultural credit societies . In terms of business, the public sector banks dominate the banking sector. LOCALFINANCING
  5. 5. All sources of local financing are available to foreign- participation companies incorporated in India, regardless of the extent of foreign participation. Under foreign exchange regulations, foreigners and non-residents, including foreign companies, require the permission of the Reserve Bank of India to borrow from a person or company resident in India. REGULATIONS ON FOREIGN BANKS Foreign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their global networks RESERVE BANK RESTRICTION The Reserve Bank of India lays down restrictions on bank lending and other activities with large companies. These restrictions, popularly known as “consortium guidelines” seem to have outlived their usefulness, because they hinder the availability of credit to the non-food sector and at the same time do not foster competition between banks NDIAN Vs FOREIGN BANKS Most Indian banks are well behind foreign banks in the area of customer funds transfer and clearing system. They are hugely over-staffed and are unlikely to be able to competewith the new private banks that are now entering the market. While these new banks andforeign banks still face restrictions in their activities. They are well capitalized , usemodern equipment and attract high caliber employees. GOVERNMENT AND RESERVE BANK OF INDIA REGULATIONS All commercial banks face stiff restrictions on the use of both their assets and liabilities.40% of loans must be directed to “priority sectors” & the high liquidity ratio and cash reserve requirements severely limit the availability of deposits for lending. The RBI requires that domestic Indian banks make 40% of their loans at concessional rates to priority sectors selected by the government. These sectors consist largely of agricultural, exporters, and small businesses. Since July 1993, foreign banks have been required to make 32% of their loans to these priority sectors. Within the target of 32% , 2sub targets for loans to the small scale sec tors (minimum of 10%) and exports (minimum of 12%) have been fixed . Foreign Banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sectors. Commercial banks lend $8 billion in the Indian financial year 1997 /98 ,up sharply from $ 4.4 billion in the previous year .
  6. 6. INTRODUCTION, ORIGIN AND GENSES OF CITIBANK Citibank was founded in 1812 as the City Bank of New York by a group of New York merchants; the bank's first head was Samuel Osgood, who had been United States Postmaster General. Subsequently, ownership and management of the bank was taken over by Moses Taylor, a protégé of John Jacob Astor and one of the giants of the business world in the 19th century. During Taylor's ascendancy, the bank functioned largely as a treasury and finance center for Taylor's own extensive business empire. In 1863 the bank joined the U.S.'s new national banking system and became The National City Bank of New York. 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. In 1896, it was the first contributor to the Federal Reserve Bank of New York. 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. Many of Citi’s present international offices are older; offices in London, Shanghai, Calcutta and elsewhere were opened in 1901 and 1902 by the International Banking Corporation (IBC), a company chartered to conduct banking business outside the U.S., at that time an activity forbidden to U.S. national banks. In 1918, IBC became a wholly owned subsidiary and was subsequently merged into the bank. By 1919 the bank had become the first U.S. bank to have $ 1 billion in assets. In 1910, National City bought a significant share of Haiti's National Bank (Banque de la Republique d' Haiti) which functioned as the country's treasury and had a monopoly on note issue.[3] After the American invasion of Haiti, it bought all of the capital stock of the Banque de la Republique. The bank became the target of criticism for what were considered to be monopolistic and unfair banking practices. It initially did not pay the Haitian government interest on surplus money that it deposited in the treasury, which was loaned out by City Bank in New York. After 1922, it began paying interest, but only at a rate of 2% compared to the 3.5% that it paid to similar depositors. Economist and Senator Paul Douglas estimated that this amounted to $1 million in lost interest at a time when Haiti's government revenues werelessthan$7million. Charles E. Mitchell was elected president in 1921 and in 1929 was made chairman, a position he held until 1933. Under Mitchell the bank expanded rapidly and by 1930 had 100 branches in 23 countries outside the United States. In 1933 a Senate investigated Mitchell for his part in tens of millions dollars in losses, excessive pay, and tax avoidance. Senator Carter Glass said of him, "Mitchell more than any 50 men is responsible for this stock crash." On 24 December, 1927, its headquarters in Buenos Aires, Argentina, were blown up by the Italian anarchist Severino Di Giovanni, in the frame of the international campaign supporting SaccoandVanzetti.
  7. 7. In 1952, James Still man Rockefeller was elected president and then chairman in 1959, serving until 1967. Still man was a direct descendant of the Rockefeller family through the William Rockefeller (the brother of John D.) branch; in 1960 his second cousin, David Rockefeller, became president of Chase Manhattan Bank, National City's long-time New York rival for dominance in the banking industry in America . CITIBANK INDIA Citibank is one of the largest banks in the U.S., and is a part of the financial services company Citigroup. Citibank had been founded in the year 1812. Initially its name was City Bank of New York, which was later changed to First National City Bank of New York. In over 100 countries worldwide, Citibank has been carrying out its operations, which comprise of regular banking services along with credit card, insurance and investment services. The bank claims to have a customer base of 15 million users catered by its online services division alone. As Citibank was badly affected by the financial crisis of 2008, the U.S. government provided the bank with an aid of US$ 50 billion in two instalments of US$ 25 billion each. Presence in India In India, Citibank is present at 28 locations as of April 13, 2009. These locations include Jalandhar, Ludhiana, Chandigarh, Noida, Delhi, Gurgaon, Faridabad, Lucknow, Jaipur, Ahmedabad, Vadodara, Indore, Bhopal, Surat, Nashik, Aurangabad, Akola, Bhubaneshwar, Kolkata, Vapi, Mumbai, Pune, Hyderabad, Bangalore, Chennai, Pondicherry, Cochin and Coimbatore. Products and Services The bank offers a variety of services and products under the Personal Banking, NRI Banking and Corporate Banking categories. The services offered by the bank under Personal Banking are Loans and Credit Cards, Regular Banking services such as savings account, business banking solutions including Personal Wealth Management and investment options such as Mutual Funds and Demat Services. The bank also offers various insurance solutions and hi-tech banking services such as Online Bill Pay, Pre-paid Mobile Recharge, Internet Banking and CitiAlert account statements on the mobile phone. NRI Oriented Services For its Non-Resident Indian (NRI) customers, Citibank provides a wide range of services including Rupee Checking Account, Money Remittance, Investment solutions and Home Loans for the NRIs. Citibank also pays specialized attention to its corporate customers in India through its Corporate Banking services, which comprises of an array of customized banking solutions tailor-made according to the needs of its corporate customers in India. These services include
  8. 8. Cash Management, Trade Services, Loans, Securities and Fund Services, and Investment Banking services. Global Commercial Bank Services Apart from it, Citibank also offers Global Commercial Bank services through its Commercial Relationship Banking wing and Global Subsidiaries Group. The Commercial Relationship Banking services are aimed at helping the Small and Medium Enterprises (SMEs) and Mid Market Enterprises, while the Global Subsidiaries Group provides comprehensive banking services for the top multinational corporates and their subsidiaries in India. CITIBANK TIMELINE  1822: Farmer’s fire insurance and Loan Company –founded.  1865: National City Bank  1894: Largest Bank in the U.S  1901: National City’s branches all over the world  1902: Expansion of National City Bank  1904: The Traveler’s Check is introduced  1910: National City buy a share of haiti’s national bank  1913: first contributor to the federal reserve bank  1918: IBC merges to the National City  1919: the first US bank to have $1billion in assets  1921: The National City under Charles E.Mitechel  1922: City bank begins paying interest  1929: largest commercial bank in the world  1939: 100 offices in 23 countries  1952: the bank under James stillman Rockefeller  1955: first national city bank christened as Citibank  1960: credit card business  1965: The first National City bank buys Carte Blanche  1966: dollar certificates of deposit launched in London  1968: Citibank’s “the everything card”  1969: first national city bank joins master charge  1970: Citibank’s automatic teller machine  1977: Citibank’s choice card  1979: Citibank –world’s leading foreign exchange dealer  1981: Citibank is chartered a South Dakota subsidiary  1996: Citibank has largest numbers of credit card in Asia  2001: Citibank settles $45million class action lawsuit  2002: Citibank’s losses  2002: Acquisition of California federal bank
  9. 9.  2004: Citibank’s enters the Texas market  March 31, 2005: first American bank renamed as Citibank Texas  April 2006: Citibank struck a deal with 7 –Eleven  November 13 2006: Citibank-corporate sponsor for New York Mets  April 11, 2007: parent Citi announces staff cut  September 29, 2008: citigroup buys banking operation of Wachovia  November 24, 2008: Citigroup receives bailout  January 2009: plans break itself by separating higher U.S risk consumers finance and securities business from its global commercial banking operation  June ,2012: Citibank completes 200 years BRAND STORIES Year 2011  I write this email to bring to your kind notice the wonderful interaction I had with Manish on Saturday 23rd July 2011. The gist of the matter - I made an e-payment through my ICICI bank for my previous month's credit card bill for the total amount before due date. I was shocked to receive a sms few days later that payment was still due. On calling up ICICI, I was told there was a 'technical issue' and the e-payment was reversed to my account. After again making payment for the entire amount, I called up Citi and asked for a call-back. Manish called me within a short time and I explained the situation to him and requested that the finance charges be reversed. He listened patiently and when I offered to send him my ICICI statement as proof said it was not needed and that he was waiving off the charges. During my entire interaction he was courteous, inspired confidence with his knowledge and turned it into a pleasant experience with his customer centricity and passion. As someone closely associated with this industry (was a Manager with American Express for 7 years), I can safely say that Citi provides the best card services for India, which is why most of my spend is on Citi and I recommend it to my friends. A lot of the success is the result of having passionate, committed, service oriented people like Manish. My kudos to him. Warm regards,  On 8th Feb 2011 I was checking with Citibank Suvidha account and realised that my account should a negative balance because my salary credited to my account was via bank transfer and not salary credit. I called our Relationship Manager Mr. Musheer who asked me to get in touch with Mr. Amit Mathur. Amit was very cordial and told me to inform my payroll manager to get in touch with him. After speaking to the payroll manager he did what was required to change the bank transfer to salary credit. I wanted him to activate my ready credit account since I had transferred my entire
  10. 10. salary into Ready credit. He committed to call me the next day (9th Feb 2011) by 5.30pm. I was quite tense because I had issued cheques the previous week. One of the cheques was my children's school fees. On 9th Feb 2011 Amit called at 11.00 am and confirmed that my account was activated. I would like to highly appreciate the help of Mr. Amit Mathur in quickly handling my Ready Credit account. I would rate the satisfaction level as 5 for this transaction. This is what I would call customer delight… Thanks Amit…. Keep up the good work!!!!!! Warm Regards Ragini Frazer Project Support Officer  It is a warm feeling to write and appreciate someone's work and it gives me a great deal of delight to write to you about how much I am impressed and delighted by the manner in which Naveen Govind helped me out this morning. A cheque I had issued recently was returned for an overwrite error (although I do not agree with that assessment of error). Naveen understood the impact of this return, and called me up last evening to suggest remedial possibilities. This morning, he saw me through the steps required to acquire an alternative cheque and all the while, stood by me to ensure that I did not have the slightest difficulty. It is not often that one encounters service of this level and I realize that despite not being one of your big customers, I was being treated to a level of customer service that was beyond the ordinary. It made me think of Citibank in a very different way and it felt good to be a customer. I want to thank Naveen again for his help, but more importantly want to put on record my appreciation of his support and my gratitude for his assistance today. Best Wishes, Vijay Director, Athena Security India Pvt. Ltd., Year 2010  It's very rare that I get to write such kind of E-mails for people, who work for my service providers & when I write it, I do it with a feeling of extreme happiness and satisfaction towards the services I received. This mail goes to thank & appreciate Mr. Rajesh Pipada, Service Quality Manager with your bank for his commendable efforts & constant follow-ups to resolve my issue and he has done this for me not for the first time but twice now! I wont forget to mention the best of this man - a very polite nature that he has, while interacting with his customers and always ready to help. He doesn't have a 'No' in his dictionary for his customers. He is a role model for others in your bank, please show this letter to all your employees (esp. your call centre staff) & tell them that a customer will take out time to write something like this only when he is 'really really' happy & content.
  11. 11. With Thanks, Mr. Dhananjay Pathak  I am delighted to know that you have given my money back. I really appreciate your understanding and your customer service as well. It seems that Citibank does not want any customer to feel sad. Whenever I sent an E-mail, you people were accepting the genuine reason and act according to that. Keeping this in my mind I will definitely open an SB account in future after I close my salary account. Thanks is not enough! Mr. Raghu Raja  Thank you very much Mr. Prasad for best attention at all times. I have been using Citibank Credit Card for nearly about twenty years and I am glad to say that I am fully satisfied with your services. Although I have Credit Cards from other Banks, but I prefer to use Citibank Credit only because I feel more safe in using Citibank Credit Card. Thanks and Best Regards, Mr. Sandip Mitra  The quality of service I received was simply outstanding. I was dealing with your front desk manager at Hyderabad - Ms. Aiswarya. She not only spent time understanding my issues but exploiting her keen sense of follow-up, kept in touch with me till I confirmed resolution. Look forward to a long sustained relationship with Citi! Best Regards, Mr. Terence Rodricks  I am spending some time to write an E-mail to you stating that my issue got fixed by Ms. Sindu. U, who helped me a lot regards to the same. She is one of the Perfect customer care Executive, whom I ever met. Thank you once again. Keep up the good work. Mr. Arun Manikam  As I felt something good about Citibank, I would like to share with you. One fine day, I called up the Grievance help desk (only once), landed to Ms. Varalakshmi. She understood the query, apologized for the wrong service, took initiative for the resolution of the issue and assured resolution. I sincerely appreciate for the concern and the resolution given by her. Mr. Krishna Chintakunta  I want you to know that I'm pleased with the quality of service Citibank provides. I sincerely appreciate your responsiveness and the way you conduct business. Although my experience has always been satisfactory, however, I couldn't stop myself from
  12. 12. writing this E-mail to let you know how this "satisfactory experience" turned into a "fantastic one". It's a pleasure dealing with people who know the meaning of efficiency and CUSTOMER SERVICE. I'm highly impressed with the excellent customer services provided by both Ms. Vinita Pharthya & Ms. Namita Saini. I feel grateful to be one of the Citibank customer & I look forward to doing business with you for years to come. Ms. Dimple Verma  Dear Ms. Parameswary, Thanks very much for supporting me last week during the forex remittance. The transaction was completed as per my expectations. Special thanks for taking the trouble to support even during a personal crisis. Appreciate this gesture. Mr. Anirudh Prabhakaran  I just want to take a moment to recognize Ms. Kanchan Sharma in your team. She is the Relationship Manager for my Account. Over the past 2 quarters, I have been interacting with her over phone or E-mail regarding numerous queries or requests on my account and I must say that she is extremely professional, responsive and committed. I've never had to follow-up more than once with her and she has always given me the solution or referred me to someone, who resolved my requests on time. Mr. Ravi Shankar Year 2009  I wish to specially thank your officer, Ms. Lakshmi Shantakumar, for all her efforts. She succeeded in restoring, to a great extent, my esteem for Citibank with regard to customer service standards. My best wishes to Ms. Lakshmi Shantakumar in her career and life. I also wish to thank you, your team and Citibank for all services rendered to me over the years and trust that this positive trend, which you have started, will continue. Since my issue has been satisfactorily addressed, I have decided to continue my long relationship with Citibank. Mr. K Krishna Kumar  I would like to thank you towards your extended co-operation and allowing us to have good faith in your organization and understanding the importance of one's hard earned money. Mr. Chetan Gandhi  I would also like to put on record my appreciation for the prompt grievance redressal system put in place by your office.
  13. 13. Mr. Rajeev Gupta  This mail is just to let you know that I really appreciate the help and support received from Shiekh in resolving the account access problem that I faced recently. He assisted me by suggesting the alternate ways to tackle the situation and stayed with me till the problem was resolved. I liked his sincerity and would like to add that a good service like this goes a long way in building customer's preference and choice. Mr. Binay S. Gautam  I am writing this e-mail to inform you about the excellent customer care I received during my phone conversation with Ms. Jayshree Armugam today around 10.45 pm PST. She was very polite, enthusiastic, kind and thoughtful in her mannerism and customer care. Her training is very good. I found her very competent. My experience in talking with her was very pleasant. Ms. Shelly DhirI just want to let you know about one of your employees Sree Kumar. Kumar was very helpful to me on the call today. I have been with Citibank NRI for over 10 years. He patiently solved all my problems. Very rare to have someone so customer focussed like him. The same issues that I am trying to solve over e-mail, he solved it for me in one phone call! He is the best! Mr. Anand  I just called in Citibank NRI Services with a bunch of requests. I ended up talking to Gauri. Just wanted to e-mail you and put in a good word for her. She was exceptionally good. She knew her job, was very polite and did my work in no time. It was nice interacting with her and I thank her for her good service. Ms. Meghana  My heartfelt compliments and kudos for two specific individuals: (i) your customer service staff, Mr. Rakesh Solanki; and (ii) your floor supervisor, Mr. Naresh. Both of the said gentlemen not only heard and understood my issues/problems, but took steps to fix the situation. It was rather refreshing to deal with these gentlemen who took steps to resolve the difficulty. More specifically, Mr. Solanki was able to do. As a result of the very helpful action taken by Mr. Solanki, I was most pleasantly surprised that the required Demand Draft had already reached its destination this morning -- within less than 12 hours of his actions, although it was my expectation that it would take between 24 to 48 hours for it to show up. Similarly, Mr. Naresh too helped monitor the situation as to the credit to my rupee account (following transfer of US $ via your ACH facility nearly a week ago). Mr. Ramesh Bhatia
  14. 14. STRUCTURE OF THE CORPORATE MANAAGEMENT TEAM ALONG WITH PRINCIPAL MARKETING EXCUTIVES AND BRAND MANAGERS CITIBANK EXECUTIVES Pramit Jhaveri CEO, Citi India Ravi Kapoor Head of Global Banking, Citi India Country Business Manager global Consumer Group,Citi India Sanjeev Kapur Chief Marketing Officer, Citi India
  15. 15. CITIBANK PEOPLE Name Surbhi Arora Business Operations & Technology Name Santosh Narayanan Business Compliance Name Satheesh Krishnamurthy Business Regional Consumer Bank Rohini Malkani Economist, Citi India
  16. 16. Name Aditya Sharma Business Institutional Clients Group Name Sharad Mohan Business Regional Consumer Bank Name Parag Wagh Business Institutional Clients Group Name Badri Nivas Business Institutional Clients Group Name Saurabh Gupta Business Institutional Clients Group
  17. 17. Name Dev Barat Business Operations & Technology Name Suchit Parikh Business Institutional Clients Group Name Saikat Sarkar Business Regional Consumer Bank Name Arnab Ghosh Business Institutional Clients Group
  18. 18. Name Saurabh Suri Business Operations & Technology Name Muge Yuzuak Business Regional Consumer Bank Name Ashish Patel Business Centers of Excellence Name Vinaya Parvate Business Centers of Excellence
  19. 19. Name Suresh Vaidyanathan Business Centers of Excellence Name Amar Savnal Business Centers of Excellence
  20. 20. CITIBANK PORTFOLIO PERSONAL BANKING: Citibank India offers you Personal Loans, Credit Cards, Online Banking Services, NRI Services, Prepaid Cards, Insurance and Investments, and a host of other products and services guaranteed to meet your needs Product & services:  Banking Banking, financial services and solutions to suit your banking needs  Credit Cards / Prepaid Cards First time in India, Credit Card application process goes completely online  Loans Loans for all your needs from Citibank  Insurance Citibank brings to you comprehensive Insurance options.  Internet Banking Citibank India offers you Internet Banking that is fast, easy and secure.  Mobile Services Citibank offers you a comprehensive Mobile and SMS Banking solution. PERSONAL BANKING NRI BANKING SME BANKING CORPORATE BANKING
  21. 21.  Investments Citibank provides world class Investment options that will help your wealth grow. NRI BANKING Product & services  NRI Services The complete range of NRI Banking services available in all major parts of the world.  Products With wide range of products, we offer Money Transfer, Online Demand Drafts, Home Loans and much more SME BANKING Citi Commercial Bank Citi Commercial Bank strives to provide small-to-medium enterprises with a complete financial solution to maximize your business growth. Citi-Commercial Bank acts as your partner to help support and grow your business to take it to the next level, delivering cost effective solutions across borders with a flexibility that is unmatched by our competitors. With our global reach, Citi has the influence and expertise to help our clients reach new heights - shaping the industries of tomorrow. Commercial Bank, a Division of Citibank, N.A., India Today's Mid-Market Enterprises and Small & Medium Enterprises are the multinationals of the future. Citi Commercial Bank acts as your partner to help support and grow your business to take it to the next level, delivering cost effective solutions across borders with a flexibility that is unmatched by our competitors. With our global reach, Citibank has the influence and expertise to help our clients reach new heights - Shaping the industries of tomorrow. In terms of global network and product sophistication the need of today's MMEs, SMEs and Emerging Local Corporates are totally different and Citibank is one of the few banks that can comprehensively meet your requirements. We devote our personal attention to deliver the best financial solutions for your business. Backed by Citibank's world-class banking platform, Citi Commercial Bank offers a comprehensive range of competitive financing options. We constantly strive to deliver outstanding service through our experienced relationship managers and specialised service
  22. 22. channels - which include our Personalised CitiService enquiry hotline, document collection and delivery service and our award winning internet banking service - CitiDirect®. Dedicated to building and maintaining long-term partnerships with entrepreneurs from a wide range of industries, our ultimate goal is to provide MMEs, SMEs and Emerging Local Corporates with customized solutions to manage their businesses with ease and confidence. With over 100 years of operating experience in Asia Pacific, we understand the risks and opportunities encountered by local corporates. From weathering market turbulence to increasing penetration in increasingly competitive business environments, Citi gives you the financial edge to achieve your goals and objectives. CitiBusiness CitiBusiness strives to provide micro-to-small enterprises with a complete financial solution to maximize your business growth. Your success is at the center of what we do. You'll get a customized premium banking service built around your business, giving growth ideas the attention they deserve. CORPORATE BANKING The Corporate Bank manages relationships with clients, which include leading Indian companies. Our global industry groups are staffed by specialists dedicated to providing state of the art solutions across continents and industries. Our industry focus keeps you abreast of the trends shaping your industry, enabling us to provide you a customised high quality corporate banking experience Product & services  Cash management 1. Account services and management Account Services Liquidity management is quintessential for effective working capital management. At Citi, we understand that liquidity management requires visibility control and optimization of balances across your accounts. A wide range of Corporates, Financial Institutions and Small / Medium Enterprises choose Citi as the preferred partner for meeting their account management requirements. Corporates can hold the following types of accounts  Current Account It is a plain vanilla, non-interest bearing account and the withdrawals to the account are permissible only up to the amount of deposits in the account.
  23. 23.  EEFC Account Exchange Earner's Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorized Dealer. This account is for Exporters to hold their Foreign Currency Inward Remittance in foreign currency.  Cash Credit Account Cash Credit account is a form of current account with overdraft facility with fixed limit. This account is also non-interest bearing account.  Escrow As an Escrow Agent, Citibank provides customised solutions by receiving, safekeeping, investing and disposing of escrowed assets.  Escrow examples include: o Escrow Bankers for Reverse Book-build issues for Delisting o Escrow Bankers for Open Offers o Share Purchase Agreements or Business Purchase Agreements o Payment Collection bank for a QIPs and IPOs o Buy Back of Shares by Tender Offer o Joint Venture Arrangements o Asset Divestitures o Acquisition of an Unlisted Company o Share issuance to Private Equity or Venture Capital Investors o Structured Loans repayment o Funds to cover pending tax liability when resolved o No-Lien Accounts 2. Payments Payment Solutions In today's competitive environment, we understand your challenges of managing cash flow and productivity in a cost-efficient manner. A key area of focus for streamlining your business operations is a more efficient accounts payable process. Citi offers you a complete outsourcing solution for all your domestic and international payments to help you save time and money while providing a value-added service to your suppliers. The Indian Banks Association, Euromoney and Global Finance have judged Citi as the 'Best Bank for Payments' (apart from other coveted recognitions), so trust us to provide you with the best payment solution.  Comprehensive outsourcing solution - payments "at the push of a button" End-to-end integration with your ERP system means that all you have to do is to issue an electronic payment instruction - we take care of the rest - from printing checks, mailing them to the beneficiary, informing the beneficiary of payment details, reconciliation and uploading status reports onto your ERP system. This will eliminate
  24. 24. all manual tasks involved in making payments, allowing you and your staff to focus on your core business needs.  One file. One instruction. One approval. Do away with the hassles of issuing separate instructions for different payment types such as cheques, drafts, NEFT, RTGS etc. Process multiple payment types whether domestic or international, in a single file and a single payment preparation and approval process. We will also warehouse all your recurring payment instructions so that you do not have to keep a tab on due dates.  Stayinformed-minimize reconciliation hassles While we execute all the payment modalities on your behalf, we ensure that you stay in control through detailed status reports and automated reconciliation reports, and your payees are informed of the payments. Imagine the benefits - your payees spend less time tracking invoices, you spend less time answering their queries on payments, goods are shipped faster to you, and you enjoy better credit relationships.  Tailor-made solutions to suit your payment requirements We will customize our payment services to suit the different needs of your business and your suppliers - regardless of whether you operate only in India and are primarily focused on domestic payments or you are a multinational with a global span of payments.  Superior coverage - large domestic and global footprint Citi ensures a wide domestic coverage with drafts payable at over 1100 bank locations, NEFT / RTGS to over 40,000 branches. On the international front, you can make import and non-import related foreign currency payments in over 137 currencies. For capital market payments, we offer metro warrants at 27 Citi locations and non-metro warrants at over 250 correspondent bank locations. 3. Collection Receivables Management Solutions Citi pioneered Cash Management in India. We are the first to come out with a structured Collections offering and to offer all modes of collections as part of its Collections Solutions in India. Citi's Collection Products under the Speed Collect (SC) Suite form a one-point source for all Cash Management Solutions. The products are flexible and we offer them in various combinations so as to optimise your collections across India. Citi offers you a complete outsourcing solution that uses various collection channels to reduce your DSO (Days Sales Outstanding) - we collect your receivables quickly, and at reduced cost, delivering your information through a variety of reports using our secure online banking platform.
  25. 25.  Expand your distribution network Our SpeedCollect Solution gives you unlimited coverage for collection of commercial receivables at over 400 correspondent bank locations and 4200 locations across India. So no matter where in the world you do business, we can manage your collections.  Vouch on our ISO 9002 certified robust and scalable collections process Citi's cash management processing platform is the only unit of its kind in Asia that has ISO Certification. Rest assured of fewer processing errors leading to greater reliability and certainty of funds, lower monitoring cost and tracking effort at your end. This endorses Citi's long-term commitment to provide unsurpassed quality and service to you.  Consolidated account - maximize returns / minimize hassles You can concentrate all your collected funds into a single account, irrespective of your client locations. The consolidation of deposits means that you don't have to maintain separate accounts with multiple banks, and you also earn higher interest rates on your consolidated deposits.  Online MIS - faster, more accurate and an automated reconciliation Our team of experienced electronic banking and implementation professionals can work with your team to automate your cash application process. Electronic Banking Services combined with unique cash flow-cum-reconciliation statements provide comprehensive advices and check-by-check reports to give you a simplified and speedy reconciliation procedure. Efficient reconciliation helps you release your buyers' credit lines in a timely manner facilitating more transactions and overall increase in sales.  Channel Offerings Our self-service kiosks, e-boxes and mobile payment channels are 24 hours automatic payment centres where customers can make payments at their convenience. The benefits quickly translate into accelerated collections on the consumer collections front. TRADE SOLUTIONS 1. Trade Services Our Capabilities If you are looking to optimise transaction turnaround times and funds flow timing... to expand into new markets while minimizing risk and maintaining your competitiveness... to develop a customized solution that matches your unique trade requirements... look to Citi.
  26. 26.  Enhanced open account terms  Documentary trade instruments  Issuing Letters of Credit  Letters of Credit advising and confirmation  Issuing Standby Letters of Credit  Document Preparation  Document Collations  Document Warehousing When you choose Global Transaction Services to provide your trade services, you are joining over 15,000 corporations and financial institutions, in over 100 countries that have chosen to partner with a market leader. In selecting Citi, you benefit from: Wide-ranging, integrated services Citi encompasses a truly integrated range of Trade services designed to meet your needs. Our information, risk mitigation, financing and settlement solutions support your entire value chain-from procurement to processing to post-sales. Trade expertise Our Trade Advisory teams have in-depth expertise in the intricacies of markets and trade products in different geographies and they can provide you with customized solutions. Among other things, they recognize your need to comply with various local regulatory requirements and the latest government rules. Unmatched infrastructure Advanced imaging and data communication systems link our four regional processing centres-in Penang (Malaysia), Mumbai (India), Lewisham (UK) and Tampa (USA)- for an around-the-clock trade operation that processes nearly 2 million trade transactions annually. A partnership approach In Citi, you have a partner who understands the way you manage your business. Whatever your trade requirements, we have the solutions and services to optimise transaction turnaround times, accelerate funds flow timing, and structure a solution that is suited to your specific needs. State-of-the-art technology
  27. 27. Citi is committed to developing and using state-of-the-art technology and risk mitigation techniques. We maintain an ongoing investment in advanced global imaging and transaction processing technologies, such as our Web-based CitiDirect® Online Banking. 2. TRADE FINANCE Receivables Financing Citi offers comprehensive domestic and international trade receivables financing solutions. These programs help increase liquidity in the supply chain and reduce the risk inherent in trade flows. Sponsored Receivables Financing Citi's Sponsored Receivables Financing Program provides companies with liquidity by accelerating their cash flow. It also allows them to increase open account sales by leveraging our risk mitigating structures. These programs have the added benefit of matching the seller's liquidity to the seasonality in its business and the currency of the underlying receivables. The facility can be structured on a revolving or one-off basis Supplier Financing Supplier financing programs help well-established buyers to have an uninterrupted supply flow by providing liquidity to their suppliers and mitigating the risk inherent in open account sales. Through these programs companies can consolidate their payment processes. This Citi solution has a programmatic approach, which makes it ideally suited for ongoing commercial relationships. Whatever your needs, our local market knowledge and expertise mean we can structure a financial solution to meet your objectives. As a result, you can explore the potential for trade wherever it arises, secure in the knowledge that we can support your transaction throughout its life cycle. 3. STRUCTURED TRADE Structured Trade Finance Are you looking for ways to grow your business and optimise working capital requirements while mitigating the risk of defaults by buyers? Citi’s Accounts Receivable Programme helps you unlock the potential in your balance sheet by purchasing your accounts receivable for immediate cash. The programme encompasses a wide range of services that include:  Factoring  Forfaiting or Avalization  Insurance  ECA Guarantee on Buyer’s Credit  Commodity Trade Finance All of these can be combined with financing options.
  28. 28. Accelerated cash conversion cycle - deploying cash for further growth Citi will pay you immediate cash up to 85% of the amount of your eligible invoices within a day of submission of the invoices and related delivery documents. Imagine the benefits of improved cash flows! You can negotiate better terms with your suppliers, respond quicker to market opportunities, and deploy cash faster to tap further growth prospects. Liquidity matched to seasonality and currency of the receivables The more your sales book grows, the more we will help you turn your invoices into cash. So no matter whether you are treading the peaks or troughs of seasonal demand, you get immediate access to liquidity in whatever the currency of the receivable. Risk mitigation - gives you the ability to sell more You can choose additional services from our offerings to protect yourself from any bad debt that may arise. On a non-recourse basis, we take on your buyer’s credit risk so that you only focus on selling more without worrying about buyers’ default risks. Solutions customised to your individual needs Citi’s trade finance experts will first study and understand your business landscape and then offer customised solutions to suit your most complex needs. You are then equipped with the freedom to explore the potential for trade wherever it arises, secure in the knowledge that we support your transaction throughout its life cycle. Collection services - a completely outsourced solution Save on costs, management time and effort in tracking invoices, following up with buyers for payments, and reconciliations. Outsource your sales ledger and these collection hassles to us. We will manage these for you so that you can focus on your core business needs. 4. EXPORT AND AGENCY FINANCE Types of products / services offered Export and Agency Finance (EAF) arranges structured financings, related to trade and capital projects, supported by Agencies - Export Credit Agencies (ECAs), Multilateral Agencies, Bilateral Agencies and Developmental Financial Institution  Tied financings (directly linked to imported capex) from ECAs: o Direct loans o Supported by guarantees and insurance cover o Under co-financing programmes  Untied financing (not directly linked to imported capex): o Under risk-sharing programmes with Bilateral Agencies
  29. 29. o Supported by insurance / guarantee under untied programmes of ECAs o Under the A/B loan programmes of Multilateral and Bilateral Agencies Pioneering initiatives undertaken  Support from agencies for local currency financing (loans and bonds)  NEXI (Japanese ECA) support for private sector financing in India under the untied programme  Providing agency supported financing solutions to the middle market / SME sector  Risk-sharing programmes with agencies for providing untied financing Key Benefits of dealing with Citi India  Is a dominant player in agency-supported financing with coverage of more than 80 agencies and has Global Deal of the Year awards from Trade Finance Magazine and Trade Forfaiting Review.  Has the ability to provide a comprehensive financing solution by offering other financing products to compliment agency-supported financing.  Equipped with an on-the-ground team focusing on providing customised solutions for arranging agency-supported financing. Citi credentials, awards and market share As per Export and Agency Finance - Global league tables, Citi is top ranker* as:  Mandated arranger for Trade Finance  Mandated Arranger for ECA Supported Loans *Cumulative 2003 thru 2007 figures supplied by Dealogic as of December 31, 2007. Landmark deals & achievements  Largest ECA supported financing in India. US$ 750 million financing for Reliance Infocomm Ltd. guaranteed by U. S. Eximbank for US$ 500 million and direct loan of US$ 250 million from EDC. This deal won the Global Deal of the Year awards from Trade Finance and from Trade Forfaiting Review.  First financing in India under the NEXI untied programme. US$ 65 million NEXI supported facility for Asahi India Glass Ltd. This deal won the Global Deal of the Year award from Trade Finance.  First dual rated agency credit-enhanced local currency bond issuance in India: INR 1400 million bond issue by Ballarpur Industries Ltd. partially guaranteed by FMO.  Successful closure of US$ 500 million U. S. Eximbank supported financing for Reliance Petrochemicals Limited, which is the largest tranche of multi-ECA supported financing.
  30. 30. SECURITIES AND FUND SERVICES 1. CUSTODY SERVICES Citi is a leading provider of global custody services with over $5 trillion of assets under custody and over 1,600 customers worldwide. Our services enable clients to effectively manage the administration of their global investments via a network that covers over 80 markets and 95% of the world's market capitalization. CitiDirect® Custody and Clearing delivers the highest standards of technology and processes, as well as a level of expertise, quality and consistency that is unmatched. Additionally, the market knowledge and relationships created by such a widespread local presence enable Citi to develop new industry solutions and help lead the process of change in the securities marketplace.  Scalable Trade Settlement with highest levels of Straight-Through Processing (STP)  Full Investment Support that includes: o Comprehensive support for subscriptions to Initial Public Offerings (IPO) o Processing of instructions to exercise warrants o Support for subscriptions to mutual funds, money market funds, listed open- end and exchange-traded funds o Full support for all exchange traded derivatives transactions, providing fully automated transaction flow, margin, and position monitoring enabling a seamless movement of margins o Robust corporate actions functionality, leveraging Citi system enhancements o Local custodian for American Depositary Receipts (ADR) and Global Depositary Receipts (GDR)  Proxy Voting Services leveraging our branch network in India: o Careful monitoring of announcement sources o Timely and accurate notification of agenda items o Facilitation of voting at general meetings o Confirmation that votes have been submitted o Providing a summary of meeting results  Market Information We can blend traditional global custody services with domestic direct custody access to markets, to meet your comprehensive and most complex custodial needs, including: o Safekeeping and settlement: Our high STP rates ensure that your trades settle with a minimum of manual intervention. o Income processing and corporate actions: We provide information to help you manage your cash assets effectively and maximize your investment returns. o Record keeping and reporting: Our reports give you critical information on your securities and cash positions, along with transaction status. o Direct electronic interface: We have direct interfaces into central depository systems and through
  31. 31. CitiDirect® for Securities, our Web-based platform for custody and clearing clients. o Technological sophistication: We deliver an advanced IT infrastructure, processing technologies and rigorous operational controls. Competitive pricing and best Forex deadlines We can execute Forex transactions in 306 currency pairs with innovative pricing solutions, using the RBI benchmark rate for pricing deals. We offer you a dedicated Forex desk with extended coverage time [8:00 AM to 9:30 PM IST] with a capability to quote cash [same day value deals] even post local cut off time [i.e., 11 AM India time] by using Citi’s prop book. 2. FUND SERVICES Citi is a leading provider of fund services solutions in India and worldwide. We offer the following services for both onshore and offshore mutual funds, insurance companies and Separately Managed Accounts in India:  Mid-office Solutions for domestic asset management companies  Pre-matching and STP system handling  Processing of trade confirmations  Fund Accounting o Net Asset Valuation (NAV) calculations o Investment accounting  Fund Administration Services o Board support o Financial and regulatory reporting o Reconciliation  Tailored Reporting Solutions Comprehensive outsourcing solution We manage your fund’s middle and back-office services – from accounting and administration to order routing to CCO support to performance measurement. This allows you to focus on your core business of asset accumulation and management. Tailor-made solutions for all your needs Citi works with smaller niche players and start-ups, as well as some of the world’s largest fund managers. Regardless of your organization’s size, you benefit from our focus on fund servicing while you enjoy a unique combination: large-firm capabilities coupled with small-firm flexibility, responsiveness and customized solutions. Unmatched expertise
  32. 32. Your ability to offer top-notch administrative services is crucial to satisfying your customers and building your franchise. It takes a team of knowledgeable experts who think like asset managers. It takes the deep institutional resources of a global leader. It takes Citi. 3. DERIVATIVES CLEARING Citi is one of the first to offer derivatives clearing services in India and currently has a market share in excess of 20% of total volumes. Today, we offer a comprehensive suite of automated clearing and settlement services for exchange-traded equity derivatives allowing you to settle all your investments in the Indian market through a single service provider. Citi has acquired PCM (Professional Clearing Membership) of NSCCL’s derivatives segment through its 100% subsidiary - Citicorp Clearing Services India Limited (CCSIL) Services - Under PCM offering, Citi will perform the following broad activities:  Accept margin collateral from clients, agree on exposure that can be taken by clients and place Initial Margin with NSCCL from clients’ Derivatives Margin account  Accept trade instructions from clients, pre-match clients’ trades executed on NSE with clients’ trade instruction, carry out margin & position limit checks and confirm trades to NSCCL  Perform daily mark-to-market settlement on clients’ futures portfolio  Exercise in-the-money options as per clients’ instructions  Liase with client’s local custodian for movement of funds, receipt of underlying valuations  Provide daily / periodical customized reports  Carry out required regulatory reporting to NSCCL, SEBI Citi’s integrated custody and derivatives clearing services offer various inherent advantages to you:  Position limits and margin monitoring Citi’s highly effective online risk management system accurately monitors your position limits and margins, minimising the risk of regulatory breaches.  Optimisation of cash flows We give you the opportunity to leverage idle cash at short notice by optimising cash flows between your Custodian and Derivatives Clearing Member.  Faster settlement Citi’s empanelment as NSCCL’s Derivatives Clearing Bank benefits clients by further reducing the time taken to place funds with NSCCL for margins or daily settlements.  Stay updated on regulatory developments Our Dedicated Market Editor will make sure that you are abreast on Derivatives- related market / regulatory developments.  Enhanced operational efficiency Our highly efficient straight-through processing environment provides a scalable and volume-intensive solution for all your securities business. Our experienced
  33. 33. professionals manage all your requirements - from day-to-day transactional items to special requests - ensuring optimal response times and prompt delivery.  Customised reports We provide customised reports on transactions, margin utilisation and position limits across multiple formats and media. LOANS At Citi, you can get all the financial products and services your growing company needs. As the leading bank for business, we have the right financial solution for each step of your growth, so when you want to upgrade your facilities or pursue an attractive growth opportunity, availability of finances will be the least of your concerns. Citi provides you comprehensive lending facilities encompassing:  Rupee Loans  Foreign Currency Loans  External Commercial Borrowings Citi led the financing facility in Tata Steel's $8 billion acquisition of Corus. When you partner with Citi, you can expect best-in-class financing solutions.
  34. 34. SEGMENTATION .STATEGY, TARGETING AND POSITIONING MARKET SEGMENTATION OF CITIBANK Citibank had segmented their market wisely. It had used the four major variables for market segmentation which included demographic, psychological, behavioural and geographical to segment their market 2.1 Demographic segmentation Demographic segmentation can be divided into a few demographic values which included age and life cycle, life stage, gender, income, generation, social class, race and culture. In Citibank, credit cards are segmented using income and generation values. 2.1.1 Income segmentation Income segmentation is the concept of dividing the market into various `income groups. For example, Citibank platinum credit card is specially designed for high income consumers (RM60,000 per annum) while Citibank Gold credit card and Citibank Clear card are designed for lower income consumers(RM24,000 per annum). 2.1.1 Generation segmentation Generation is divided in to four main generational cohorts which are GenY (1979-1994), Gen X (1964-1978), Baby Boomers (1946-1964) and Silent Generation (1925-1945).Each generation will be influenced by the times in which they grew up. Marketers therefore market to a generation by using icons and images that is relatable according to the generation (Kotler and Keller, 2009)Citibank Clear card is designed to Gen Y. There are promotions like free entrance from Tuesday to Saturday in Zouk Club Kuala Lumpur, one for one coffee in Coffee Beans nationwide outlets and Friday one for one movie tickets. For Citibank Gold credit card, the benefits like rewards points, gold travel (insurance), gold SOS that required you to ask for help whenever petrol or car batteries rundown, gold healthcare and gold lifestyle that offers you preferential treatment anddiscounts are more suitable for Gen X consumers. 2.2 Psychological segmentation Psychological segmentation included a few variables such as lifestyle, value and personality traits. According to VALS framework, the four groups with high resourcesare innovators, thinkers, achievers and experiencers while the four groups with low resources are believers, strivers, makers and survivors. Citibank divided the society on the basis of life- orientation.
  35. 35. 2.2.1 Life-orientation People who are traditional, passionate in work and self expression are targeted. Citibank attracted people by providing benefits as people go thru the routine of their work life. With or without those benefits, people will have to do the same thing too. For example, outstation, refuel, shop for groceries et cetera. These things have to be done even if without any rebates or cash bank in credit cards. Those credit cards which are using life-orientation basis included Shell-Citibank credit card, Giant-Citibank credit card, Citibank Premier Miles card and Air Asia Citibank credit card. 2.3 Behavioral segmentation In the behavioral segmentation, marketers divide buyers into groups based on their knowledge of, attitude towards, use of, or response to a product. The variables used in this type of segmentation include benefit sought, occasions, user status and usage rate, buyer readiness, loyalty status and attitude. (Philip Kotler, 2012)In Citibank, it uses thevariab le of benefit sought and occasion to segment the market for credit card. 2.3.1 Benefit sought Benefit sought is widely used in the market because it can help to identify he distinct market with clear market implication. Under this variable, consumers are being divided into enthusiast, image seekers, savvy shoppers, traditionalist, satisfied sippers and overwhelmed. The Citibank cash back platinum credit card is specifically designed for the customers who are falls under the category of savvy shoppers. Users of this type of credit cards can get rebates on daily retail spend and also can enjoy 20% off on selected purchase in Coffee Bean. However, the Citibank Premium Miles and Air Asia credit card was designed for customer on the basis of occasions. 2.3.2 Occasion buyers Under the variable of occasion buyers are distinguished when theydevelop a need or make a purchase or use a product. These two types of creditcard are suitable for people who need to fly frequently for business purpose or traveling because users can redeem free flight ticket when they fly more. 2.4 Geographic segmentation Lastly, geographic segmentation divides the market into geographical units such as nations, states, regions, countries, cities or neighbourhood. Nielsen Claritas has developed a geoclustering approach called PRIZM clusters which consists of young digerati, beltway boomers, the cosmopolitans and old milltowns. Groupings in this cluster are basically based on five broad categories such as education and affluence, family life cycle, urbanization, race and ethnicity and mobility. (Philip Kotler, 2012) The purpose of this segmentation strategy is to ensure that the products are tailor to the needs and wants of local customers. In Malaysia, Citibank are targeting on customers who are well-educated and having a middle high income. Thus, it is more concentrated on customers from urban area
  36. 36. especially areas like Klang Valley, who fall under the cluster of young digerati, beltway boomers and the cosmopolitans. There are 6 out of the 11 branches of Citibank are located in this area. In addition, to strengthen its position in Malaysia, it also set up mobility boots in various notable shopping centers to attract more potential customers from different areas to use their credit card.
  37. 37. STRATEGIES FOLLOWED BY CITIBANK
  38. 38. CITI’S DIVERSIFICATION STRATEGY  Diversify intorelated business under some coherent strategic theme . Potential benefits of related diversification  Cross business sharing of expertise ,capabilities, and technology  Exploit economies of scope and capture synergy benefits from combining similar operations of different strategies  Enable collaborations to develop new strength and create new competitive capabilities .  Leverage use of company’s brand name  Increase market power Drawbacks of related diversification  Difficulties of integrating the operations with different cultures
  39. 39. Fundamentals of Citi’s Strategy  Client focus  Global strength  Constant innovation
  40. 40. CITIBANK’S TARGETING A target market is a cluster of people that will mostly need or desire of the products or services that provided by the company. Target market can be defined in termsof a few values which included age, sexual orientation, gender, income, religion,traditions or location. In order to get useful information, market segments must includekey criteria which are measurable, substantial, accessible, differentiable and actionable.Measurable means that the size, purchasing power and characteristics of the segmentsmust be measurable so that the target can be identified. For substantial, the segment hasto be large enough to justify the resources. Besides, the segment must be accessible sothat messages can be distributed. The segments must be differentiable in term of theresponse towards certain products. For example, if male and female response similarlytowards chocolates, there is no separate segments. Actionable criteria can be achieved byconducting effective programs can be formulated to attract and serve the segments.Markets can be targeted at four main levels which included mass segments, multiplesegments, single (niche) segments and individual segments.As Citibank has a huge back support from Citi group, it tends to use multiplesegment specialization as a target market strategy in Malaysia to increase its revenue and profit. Therefore, it comes out with a wide range of credit card which is suitable to beuse d by all levels of people. The target segments include fresh graduate, workingyoungster and low income people as well as high income businessman. To ensure theytarget the right segment of people, Citibank clear card are tied with some of the specificmerchant such as TGV cinemas and Coffee Bean to attract more Gen Y card users. At thesame time, the Citibank Premium Miles platinum card are tied with golf club to give it’s card holder privilege access to golf and also airport lounges to attract businessman. Citibank targets Emerging Affluent segment across Asia The country’s largest foreign bank launches a full range of innovative banking services to attract emerging affluent clients; new value proposition will be rolled out across Asia
  41. 41. Consumer Business Manager for Citibank Philippines Sergio Zanatti (center) introduced the bank’s game-changing value proposition in personal banking, focusing on unparalleled access, global banking, and personalized services. Joining Zanatti at the media briefing are (right) Daniel Baranowski, Head of the Emerging Affluent Segment for Citi in Asia Pacific, and Retail Banking Director for Citibank Philippines Vipin Agrawal. The largest wealth manager in Asia Pacific is now setting its sights on the growing emerging affluent segment, offering unparalleled access, global banking, and personalized services. This new value proposition is part of Citibank’s strategy to serve the evolving needs of a rapidly growing market of about 500 million individuals around the region with investible assets from US$10,000 to US$100,000. Consumer Business Manager for Citibank Philippines Sergio Zanatti announced to the media that they are focused on capturing this market in line with their commitment to serve clients as they grow in affluence and their financial requirements evolve through their wealth journey. This is the entry level in a wealth continuum that includes the Citigold brand for the affluent. “We introduced wealth management in the Philippines in the early 1990s, and we have been very successful in this front. In 2010, we outpaced the single-digit
  42. 42. industry performance in Asia as we posted a double-digit growth in our customer base. We are tracking that success this year, but recognize that the Citigold market is a finite segment. To continue to grow aggressively, we are looking to the emerging affluent, and leveraging on our leadership in wealth management to grow our client portfolio,” related Zanatti. Citibank views the emerging affluent segment as a vital part of its wider growth strategy in Asia. The new value proposition underlines the bank’s ability to offer leading services to customers at each stage in their lives, and to provide them with the best solutions to grow their wealth. In fact, over 50% of Citigold clients in Asia Pacific were originally Citibank clients. The emerging affluent market is seen as one of the fastest growing in the financial services industry in Asia, growing at a rate of 12% to 15% year on year. Moreover, the revenues from this segment are expected to grow 8-15% per year in most countries1 . Citibank recently conducted an extensive survey of 8,000 emerging affluent individuals across six Asian countries which revealed their profiles, lifestyles and banking preferences. “Our research shows that emerging affluent clients want a bank that values their time, that immediately addresses their needs, and that offers world-class digital banking services. Additionally, these clients are living increasingly global lifestyles and want a bank to support them with their international banking, traveling and investing needs. Our new value proposition seeks to deliver a distinctly higher level of service along all of these dimensions and asks clients to re-think the way they bank and aspire to a higher standard” said Daniel Baranowski, Head of the Emerging Affluent Segment for Citi in Asia Pacific, who flew in to join the media briefing. With operations in over 100 countries, Citi’s global franchise is an increasingly important differentiator as more Asians travel overseas for pleasure, to study and to work, and are thus demanding a truly global banking partner. Retail Banking Director for Citibank Philippines Vipin Agrawal disclosed the features of Citibank’s new value proposition, which will set the benchmark for the industry as it raises customer experience to a whole new level: Unparalleled access and responsiveness Free local cash withdrawals at over 10,000 ATMs across the country
  43. 43. Call Me Back– leave a message at www.citibank.com.ph and Citi will call you back on your preferred schedule 20 sec pick-up via 24/7 CitiPhone Access to Citibank Online and Citi Mobile anytime, anywhere in the world Full suite of global banking services Free and real-time Citi Global Transfers of as much as US$10,000 daily Cross-border account opening with pre-arrival assistance Global View of Accounts to see all your accounts with Citi in one view Free international cash withdrawals at over 20,000 Citi ATMs across the globe for travellers Emergency cash up to $1,000 while travelling abroad Exclusive rewards and offers with Citi World Privileges Personalized products and services Dedicated Personal Banker Professional financial guidance and access to market updates, analysis, and investment performance Goal Planner Tool for personalized financial planning. “With our new Call Me Back service, Citibank Philippines will be the first market in Asia to launch this innovative feature, in which we promise our clients that we will call them back anytime, anywhere,” narrated Agrawal. The Citibank emerging affluent value proposition has been launched in Singapore, Hong Kong, China and Taiwan, and it will be launched across Asia over the next 12 months. “We see emerging affluent as a key growth engine for Citibank in the Philippines and we have a two-pronged channel strategy to address the needs of this market – through a superior digital banking experience and strategic locations of Citibank and Citibank Savings branches nationwide,” Zanatti said. Citibank’s website for consumer clients was recently refreshed, now featuring an intuitive user interface for easy navigation, simplified menus, as well as advanced features including personal finance tools that give customers flexibility and control over their daily household financial management. Citibank is the leading consumer bank in Asia Pacific with over 31 million retail and card customer accounts and has pioneered the use of internet and mobile
  44. 44. banking across Asia. In 2010, Citi’s Asia consumer unit was the largest for Citi globally, generating US$2.1billion in net income or around 20% of Citi's global net income. Citibank is the largest wealth manager in Asia Pacific with over US$185 billion assets under management. Citibank first to target Indian students Bangalore, India -- Citibank, one of the largest multinational banks in India, has launched CitiStudent, the South Asian subcontinent's first banking program exclusively targeting students. The start of a new ``Lifestage Marketing''-themed campaign, the effort seeks to attract students as customers using technologically advanced banking services; easy terms for account opening and minimum balance requirements; and ease of use. The effort aims to retain students as customers once they join the workforce. The bank, part of New York-based Citicorp, plans to target 50 leading universities and educational institutes in India by 2000. "CitiStudent users will have an opportunity to experience Citibanking very early in their lives while giving us a unique advantage in understanding and meeting the evolving needs of these customers as they advance in their lifestage, so that Citibank remains their automatic preferred choice for all their financial needs," said Ashoke Dutt, Citibank India's global consumer bank head. The U.S. bank launched the concept at the Indian Institute of Management, Bangalore, Karnataka. Citibank Cyberzone, an area in the business school's campus, offers student customers a 24-hour CitiPhone banking hot line; online banking and Internet terminals; an automatic teller machine; and terminals that can process both debit and credit cards. Relaxing the stringent norms common for opening new accounts, Citibank will allow students to maintain a minimum $25 savings balance with their checking account. Other incentives include waivers on monthly fee charges on accounts, an ATM/debit card and a Citibank credit card. Citibank leads the local credit-card market with nearly 1 million cardholders and 50% of volume generated through countrywide transaction.
  45. 45. CITIBANK POSITIONING Buoyed by robust growth in its commercial banking and mortgage businesses, Citibank India reported a 41.4 per cent rise in profit after tax for 2012-13 at Rs 2,718 crore. Citi India, part of US-based global banking giant Citibank, also helped Indian clients raise USD 18 billion from equity and debt markets and advised on merger and acquisition deals worth USD 10.4 billion during the year. Besides, it was a leading arranger of capital for the Indian financial system with close to USD 8.5 billion raised and played a key role in the Indian government’s disinvestment programme, the bank said while announcing its financial results. Citibank India’s profit after tax rose by 41.4 per cent to Rs 2,718 crore during the financial year ended March 31, 2013, while profit before tax rose 39.2 per cent to Rs 4,589 crore. At the end of last fiscal, Citibank India’s total assets were Rs 1,28,380 crore, with advances growing by 10 per cent to Rs 52,036 crore and deposits rising by 3 per cent to Rs 66,559 crore. The bank said that its capital adequacy ratio stood at a healthy rate of 15.90 per cent and the net NPA ratio was 1.47 per cent. Bank has delivered high quality earnings despite a challenging environment. “During the financial year 2012-2013, Citibank have seen sustained expansion in the commercial banking segment, high off-take of trade loans by global banking customers and
  46. 46. growth in our mortgage business. Their capital position remains robust as it supports a larger balance sheet. The bank opened three Smart Banking branches in Noida, Mumbai and Bangalore, while its cards business maintained a leading position in terms of spending per card with about 18.4 per cent market share. The bank’s mortgage book grew 16.7 per cen to Rs 9,949 crore in the year, while the overall Asset Under Management in its wealth management business stood at Rs 16,059 crore at the end of the last fiscal. The bank said it also made 135 new hirings, under its Associate Program, from B-schools in India during the year, while the bank’s Corporate Citizenship program made grants totaling Rs 12.68 crore during the fiscal.
  47. 47. ADVERTISING AGENCIES ASSOCIATED WITH CITIBANK AND THE CITIBANK CAMPAIGN 1. CITIBANK TAKES TO ONLINE AND OFFLINE CLOUDS FOR 'DIL VS BILL' CAMPAIGN  Media agency: MEC India  Creative agency: Publicis Ambience Citibank used an advertising format called skyvertising, in conjunction with social media, to promote its 'Dil vs Bill' no-extra-cost EMI campaign during the festive season in Delhi and Mumbai. The campaign was aimed at promoting the bank's EMI offering on credit cards. Publicis Ambience is the creative agency behind the campaign, while MEC India is the media agency. On the initiative, Sanjeev Kapur, chief marketing officer, Citibank India, said, "Citibank offered EMIs at no extra cost at over 500 merchant outlets, allowing our customers to make big-ticket purchases during the festive season. We adopted new-age mediums like clouds, tweets and Facebook to create excitement amongst the upwardly mobile and socially networked consumers.” Called 'Tweet a Cloud, Dil Se', the digital-led activation used differently shaped clouds made of helium which were released into the sky. Clouds of the rupee symbol, shopping bags, the Citi logo and 'EMI' were released above DLF Promenade, Delhi and at Phoenix Mills, Mumbai. Mall goers were urged to tweet with the hashtag #dilvsbill, for more clouds.
  48. 48. "The campaign was well received making #dilvsbill amongst the top trending on Twitter for over 53 hours continuously during the period of the initiative. Also, the 'Dil vs Bill' campaign post on Citibank India’s Facebook page reached out to more than 4.1 million users," added Kapur. A statement from the creative agency pointed out that the campaign idea highlighted the conflict between the desire to indulge and expenses of the season. Elaborating on the thought, Sunanda Chadha, vice president, Publicis Ambience, said, "As a bank and a facilitator of purchase, Citibank is perched at slightly higher level in the food chain of purchase. We needed to exemplify this, above and beyond the extremely cluttered festive landscape of hoarse cries of star bursts and discounts. 'Dil vs Bill' is a unique colloquial property that leveraged the insight of purchase decisions being a constant struggle between what we want and what we can afford. The campaign urged people to buy what their hearts wanted, thanks to Easy EMIs from Citi’." Commenting on the activity, T Gangadhar, managing director, MEC India, added, "We are very proud of this integrated innovation. Not only did this bring to life to consumers' tweets outside Twitter, it also served as an interesting way to measure shopping sentiment leading up to Diwali." The statement further informed that the campaign was strengthened with chasers, an innovative media strategy used in print format and radio spots. It pointed out that advertisements were placed in close proximity to lifestyle product ads giving consumers a reason to use the EMI offers on Citibank cards. Following this campaign, the statement noted that EMI sales on Citibank India credit cards for the festive season this year more than doubled from last year.
  49. 49. APPLICATION OF PORTERS FIVE FORCES &SWOT ANALYSIS APPLICATION OF PORTERS FIVE FORCES-CITIBANK - THREAT OF NEW ENTRANT  Low/high (exceptions)  Existing loyalty to majors brands  Huge investment  Incentives for using a particular buyer  High fixed cost  Scarcity of resources  High cost of switching companies  Government restriction or legislation  There is virtually no chance of a new entrant significantly affecting the major bank’s market share .the only place new entrant may have a chance in the industry is through internet banking because of its low costing. POWER OF SUPPLIERS  Low to medium  There are very few suppliers of a particular product categories  There are almost no substitutes in some product categories  Switching to another product is very costly  The supplying industry has high profitability then buying industry
  50. 50. OPPORTUNITIES  Because of increasing amount of technology internet banking will begin to replace traditional banking, thus cutting personnel cost.  Incorporating investment banking into the banking sector ,as some major companies are doing. THREATS  An increase in interest rates causing a decline in bank activity.  A collapse of the fed leading to bank failures ,a repeat of the crash of 1929. POWER OF BUYERS  Medium to high  Large numbers of buyers  Purchase large volumes  Concentration ratio is medium being international  Information is easily available to the consumers  Switching to another product is simpler  The product is not extremely important to buyer, they can do without product for period of time  Customers are price sensitive AVAILABILTY OF SUBSTITUTES  Low to medium  Internet’  If substitutes are similar ,it can be viewed in the same light as a new entrant  Presence of companies like western union ,PayPal and xe.com  This is not really an issue with in the banking industry ,because there aren’t really any legal representative ,except buying a safe and borrowing from a loan shark . COMPETITIVE RIVALRY A highly competitive market may result from :  Many players of about the same size; there is no dominant firm.  Little differentiation between competitors product and services  A matured industry with very little growth; companies can only grow by stealing customers from the competitors  Technology advanced companies  Introduction of new products by competitors
  51. 51. The banking industry is continuing to restructure and position itself for our changing economy as a result many mega mergers have occurred in recent years. Citicorp and travelers insurance agreed to merge in april 1998 at value of $70 billion .bank mergers are usually consummated as a cost –cutting measures but also to compete with non bankers providers of financial services.
  52. 52. SWOT ANALYSIS OF CITIBANK Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis According to Hitt, Ireland & Hoskisson (2011), Cititbank was the most global of all U.S. banks and in 1997 was among the most profitable as well. The changing global environment and customer needs, however, presented Citibank with unique opportunities and threats. An analysis of Citibank’s strengths, weaknesses, opportunities, and threats provide the following STRENGTHS  Citibank/Citigroup benefits from strong brand recognition in the financial service industry (Hitt, et al, 2011). As a result, Citigroup enjoys a strong competitive edge over its competitors. Not only does Citibank have strong brand recognition within the United State, but their brand name is known globally as well.  Citigroup provides a larger amount of credit cards than any other bank. Based on feedback from this customer pool, in 2003 Forbes.com presented Citibank with a financial sector award, making Citibank’s superior customer service another of its strengths
  53. 53.  Citibank is also one of the most global of the existing financial service providers As a result, Citibank has a history of continually investing in its banking technology.This reputation of superior technological offerings sets Citibank apart from its competitors.  Citibank’s global presence is vital in continuous profits, and is therefore recognized as another corporate strength Their expanded portfolio enables Citibank to deliver good results, regardless of the ongoing changes within the economy and banking industry.  Citibank’s global presence also provides their customers with a better integration of products and services. Citigroup is also known for its diversified products and services (Hitt, et al, 2011). This is essential in capturing new markets, as well as new consumers. Risk within Citibank is reduced as a result of diversification. Diversity, in general, helps in positioning Citigroup with consistently delivering superior products and services. WEAKNESSES  The declining economy took a toll on the banking industry.  Higher credit card costs and the global economic slowdown accounted for declining capital within Citibank .With credit card costs increasing, and financial losses due to the economy, Citibank had to take a hard look at ways to improve technologies that would embrace and enhance performance.  Citibank also experienced a sharp decline in income levels subject to debt obligations related to the sub-prime markets .  These sub-prime markets strongly impacted the bottom line profits of Citibank.  Investors lost confidence in the financial industry as these high risk loans escalated out of control. As customer demands increased, Citibank found it difficult to keep pace with these requests with less revenue at their disposal (Hitt, et al, 2011). Their lower scale of operations  Citibank experienced a weak competitive position that was primarily attributed to Under performance (Hitt, et al, 2011).  Citibank offered inferior products and services, and lacked the innovation of new products and services that their customers desired.  As a result, market shares continued to decline over a four year period.
  54. 54. OPPORTUNITIES  Citibank’s positive reputation is well known within the global banking industry Citibank is focused on enhancing and expanding its good reputation. As a result, Citibank has the opportunity to leverage its reputation to gain new customers, which will increase profits.  Expanding global banking is essential in any banking organization. Citibank’s product portfolio could be enhanced by adding new products and services, as well as improving and enhancing current offerings. Innovative products and services could potentially bring new customers to Citibank.  Customer service is of utmost importance to Citibank (Hitt, et al, 2011). They want their customers, new and old, to know they can rely on Citibank to focus on each person’s individual account as they would their own.  This is the reason Citibank has made increasing customer service of utmost importance.Citibank is offering a fresh approach to banking.  New technologies can provideCitibank’s customers with innovative and efficient accounts receivable, accounts payable, and liquidity management services to be accessible anywhere, anytime, at the lowest cost. This will be a crucial tool in the success of Citibank. THREATS  As with any industry, competition is always a threat. Citibank’s main competitors include Bank of America, Chase Bank, as well as new entrants into the banking industry  Citibank must be innovative in developing new techniques in which to serve theircustomers to remain strong and eliminate competition. Retaining current customers, as well as attracting new ones, will prove crucial to the financial stability of the organization.  Even though investing in technology is one of Citibank’s strengths, it also has thepotential to threaten the profitability of the organization. Developing and providing new technologies is resource intensive (Hitt, et al, 2011). Whether Citibank simply enhances itscurrent technology, or purchases new technologies, the budget will be impacted.  Regulatory scrutiny is another threat to Citibank’s growth (Hitt, et al, 2011). Banking regulations change continuously. Staying abreast of these updates and implementing means to stay in compliance is a resource burden on the industry. Being non- compliant, however, is an even larger burden.
  55. 55.  Weakening global financial markets also pose a threat to Citibank’s growth . The declining economy provides an unstable condition that creates stress and fear for all involved. This includes the banking industry, the customer, and the investors. As long as the financial markets remain weak, threats to survival will remain.
  56. 56. COSTING ANALYSIS OF CITIBANK COSTING ANALYSIS OF CITIBANK: Optimize Your Working Capital and Increase Your Financial Advantage Citi’s powerful analytics tool provides an in-depth analysis across all spend categories to give you superior visibility and insight for decision-making.Citi’s analytical tools and advisory team can help your organization realize potential cost savings and greater efficiency within your Accounts Payable processes and in new payment and working capital strategies. Using a suite of analytical tools available only to Citi clients, our team of analysts will review and analyze your spend data, then recommend payment methods and a strategic approach to managing your financial supply chain that will increase efficiencies and cost savings. Citi will also outline ways to streamline your entire procure-to-pay process with modular solutions such as:  Commercial card optimization  Complete Payments and Working Capital Supplier enablement planning  Buyer Initiated Purchase Card segmentation  Citi Supplier Finance segmentation  Electronic Invoice opportunity scoping CITI TRENDS (WEIGHTED AVERAGE COST OF CAPITAL (WACC) ANALYSIS) WACC ANALYSIS :
  57. 57. 1. The WACC (discount rate) calculation for Citi Trends uses comparable companies to produce a single WACC (discount rate). An industry average WACC (discount rate) is the most accurate for Citi Trends over the long term. If there are any short-term differences between the industry WACC and Citi Trends's WACC (discount rate), then Citi Trends is more likely to revert to the industry WACC (discount rate) over the long term. 2. The WACC calculation uses the higher of Citi Trends's WACC or the risk free rate, because no investment can have a cost of capital that is better than risk free. This situation may occur if the beta is negative and Citi Trends uses a significant proportion of equity capital.
  58. 58. BRAND AMBASSADORS OF CITIBANK AND THEIR PROFILING Citibank doesn’t have celebrity brand ambassador .it communicate to the consumers using common people in their advertisements Audience Analysis of Citibank India As you can see in the image below, a good portion of Citibank’s social media fans consists of men (69.57%), and they belong mostly from 31-40 (37.16%) and 40+ (31.91) age groups. There are some younger fans of the page as well (see the second image below), but to a large extent older audience patronizes the page. I could witness resentment on the social media sphere. People’s dislike for banks like Citibank can be felt in the negative brand opinion people have about it on social media (see the images below).
  59. 59. Overall Strategy The primary function of social media for Citibank India, as it appears from the posts it has made is to promote its various offerings, services, and activities the bank is engaged in. They have thrown in occasional contests, trivia, and quizzes, but mostly they are Citibank-centric (see the image below). The bank has carried its egocentricity from the traditional media to social media. Citibank India on Facebook Face book spearheads the social media efforts of Citibank India. The bank has 522,000 fans on the social media website, but engagement level is abysmally low for a fan page which has such a big fan base. And the reason for it could be traced to the lack of any content plan or comprehensive Facebook strategy. In most of its Facebook posts, the bank talked about its new product or new features (see the image below), and this sole focus on itself and its product is pushing the fans away.
  60. 60. There is very little on the page to engage fans, which also reflects in the low level of engagement with the page. As you can see in the following image, apart from a couple of big spikes, there is a very few episodes of engagement in the last 30 days. And the immediate reason behind this could be the choice of content that the bank has posted on the wall. Even the quizzes it posts talks directly about the bank’s product (see the second image). Can the primary reason for this low engagement be the overall image of the brand? It is very much possible, at least this is what the comments on above two posts suggest.
  61. 61. CITIGROUP REPOSITIONING  CITIGROUP ANNOUNCES REPOSITIONING ACTIONS TO FURTHER REDUCE EXPENSES AND IMPROVE EFFICIENCY Citigroup repositioned to reduce expenses and improve efficiency across the company while maintaining Citi's unique capabilities to serve clients, especially in the emerging markets. These actions will result in increased business efficiency, streamlined operations and an optimized consumer footprint across geographies. These actions are logical next steps in Citi's transformation. While it committed to—and their strategy continues to leverage-- our unparalleled global network and footprint, they have identified areas and products where their scale does not provide for meaningful returns. And they will further increase our operating efficiency by reducing excess capacity and expenses, whether they center on technology, real estate or simplifying our operations." Due to this repositioning, Citi expects to record pre-tax charges of approximately $1 billion in the fourth quarter of 2012 and approximately $100 million of related charges in the first half of 2013. Citi currently expects that the repositioning will generate $900 million of expense savings benefitting 2013 results and that the annual expense savings will exceed $1.1 billion annually beginning in 2014. Citi also expects the repositioning actions to have a negative impact on annual revenues of less than $300 million. These actions will result in a reduction of more than 11,000 positions. Citi expects the repositioning activity to affect the following businesses and functions: Institutional Clients Group (ICG): Approximately 25% of the announced fourth quarter repositioning charges are expected in Securities & Banking with another 10% in Transaction Services. The repositioning actions are expected to result in a reduction of approximately 1,900 positions, of which more than half are in the Operations & Technology functions that support the business. The actions are designed to streamline our client coverage model in Banking and improve overall productivity in our Markets business, especially in areas experiencing continued low profitability such as cash equities. Global Consumer Banking (GCB): Approximately 35% of the fourth quarter repositioning charges are expected to be incurred in Global Consumer Banking, resulting in a reduction of approximately 6,200 positions, of which approximately 40% are in the Operations & Technology functions that support the business. As a result of the repositioning actions, Citi expects to either sell or significantly scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay. Consistent with Citi's strategy of focusing on the 150 cities that have the highest growth potential in consumer banking, Citi will optimize its branch footprint and further concentrate its presence in major metropolitan areas. The markets affected by the reductions include Brazil (14 branches), Hong Kong (7), Hungary (4), Korea (15), and the United States (44).
  62. 62. Citi will continue to invest in its franchises in these countries to serve its targeted consumer segments. After this repositioning, Citi will have more than 4,000 retail branches around the world and all of the aforementioned countries will continue to be served by our institutional businesses. Citi Holdings: Citi Holdings is expected to eliminate approximately 350 positions and incur approximately 5% of the repositioning charges. Most of the repositioning charges are related to branch rationalization in Greece and Spain. Corporate/Other: About 25% of the announced repositioning charges are expected to be incurred in Corporate/Other. Operations & Technology: Citi's Operations & Technology function is expected to achieve greater efficiency through increasing standardization and the use of automated processes; streamlining the organizational structure; and consolidating functions and moving certain positions to lower- cost locations. In addition, there will be a consolidation of certain locations in Citi's real estate portfolio. In addition to the reductions in Operations & Technology positions that support the ICG and GCB businesses, these actions will result in the reduction of approximately 2,300 positions that support corporate services, real estate, and Citi Holdings. Global Functions: Roughly 300 Global Functions positions will be eliminated as a result of efficiency savings. "Citi has come a long way over the past several years. We have been consistently profitable; our capital strength is among the highest in the industry; and we have shed hundreds of billions in assets and businesses that are not core to our strategy. We will continue to seek ways to optimize the execution of our strategy to better serve our clients and deliver results for all of our stakeholders," concluded Mr. Corbat. Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Certain statements in this document and certain statements by Citi's management made orally to analysts, investors, representatives of the media and others, including those regarding various planned repositioning actions, estimated repositioning charges, expected annual expense savings and the expected benefits to Citi's operating efficiency, among others, are "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may
  63. 63. differ materially from those expressed in or implied by these statements due to a variety of factors, including but not limited to the precautionary statements included in this document as well as Citi's inability to fully complete the repositioning actions and realize the annual expense savings at all or in the anticipated timeframes referenced. More information about these and other factors is contained in Citi's filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of Citi's 2011 Annual Report on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this document. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward- looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made
  64. 64. COMPETITORS ANALYSIS Citibank represents the consumer banking operations of financial services giant Citigroup. The unit has more than 1,000 branches in more than a dozen US states. California, New York, and Texas are its largest markets, but the bank also has a significant presence in the Northeast, as well as in Chicago and Miami. It has about 300 international locations in some 40 countries, with a focus on emerging markets in Asia, Latin America, and Central and Eastern Europe. Citibank provides standard banking fare such as deposit accounts, credit cards, and loans to consumers and small businesses, and utilizes its parent's breadth of financial services to also offer investment and financial planning services TOP COMPETITORS FOR CITIBANKS:  JPMorgan Chase & Co.  HSBC Holdings plc

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