Citigroup Bets Big on Digital Banking
May 13 2019 - 7:42AM
Dow Jones News
By WSJ City
In the lean years following the financial crisis, Citigroup made
an unintentional bet on the future of banking. It's starting to pay
off.
KEY FACTS
--- Citigroup shrank its footprint, focusing on a handful of big
cities to right itself after its near-collapse.
--- At the same time, Bank of America and JP Morgan Chase were
gobbling up cheap deposits at thousands of US branches.
--- Now Citi execs are convinced many US consumers are finally
ready to leave the branch behind and embrace digital banking.
--- Citi added roughly $1bn in digital deposits in Q1, more than
in the whole of 2018.
--- The bank has recently reorganised its consumer unit and
rolled out a new account through its app aimed at credit-card
customers.
Why This Matters
Other big banks are ramping up their digital offerings too, but
they are doing it alongside their giant branch networks. Citigroup
is wagering that many of those locations--more than 4,000 each for
JP Morgan and Bank of America--will become burdensome. Still,
Citigroup has a lot of ground to cover to reach its rivals.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
May 13, 2019 07:27 ET (11:27 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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