Citibanks e-Business Strategy for Global Banking

SaidAltnk MoustafaAbdulaziz

Asuman akrolu zgrztrk

Citibanks Global Cash and Trade Division

Manage the flow of money for its corporate customers Provide tools and channels to receive money and to make payment efficiently Enable its customers to conduct transactions online

Citibanks Global Cash and Trade Division

The Goal Build a single web-enabled platform for all customers with similar service needs, develop integrated solutions, and reach new markets

Global Corporate Banking at Citibank

1812: Founded as City Bank of New York 1976: named as Citibank N.A. 1998: changed to Citigroup Inc. 2001: Staff - 268.000 Countries - Over 100 Customers - 192.000.000

Global Corporate Banking at Citibank

Core Products
Transaction services: cash management, trade and custody services Corporate finance services: working capital finance, trade finance, assetbased financing Treasury market services: hedging and foreign exchange

Citibanks Cash Management and Trade Clients Services

Multinationals, financial institutions, government sectors, local corporations SME businesses

Daily financial transactions

$1 trillion worth

Citibanks Cash Management and Trade Citibank understood that all banks offer Services similar services.
o

thus they differentiated themselves through

o

Offering telephone hotlines Relationship managers who understood clients needs Product consultants who provide service expertise Continous investment in technology

Cash and Treasury Management Products

Focus on finding ways to move money around in the most efficient manner Focused on developing solutions to address Accounts receivable process management Accounts payable process management Liquidity management

Trade Products
Offered

Trade finance Trade services Trade support services

Product offering covered banking services and financing needs of customers who had import and export trade transactions.

In pricing policy, Citibank emphasized on customer services(response time, technology, support)

Pricing And Customer Services

By offering outsourcing Citibank Secured all the businesses from the customer Gained a total relationship with the customer Obtained economies of scale with a large number of customers

A Changing Global Environment/ Customers

Sophisticated corporate customersadditional services(collect payment online, access to efficient web-enabled financial processes etc.) Middle markets- internet banking capabilities Banks needed to identify what clients look for and keep up with the ones they supposed to develop consultative relationships

B2B Market in 2000

Sophisticated clients were looking for ways to improve their traditional payment processes. Electronic invoicing Automatic application of payments to accounts receivable Online payment guarantees Multicurrency payment management Payment aggregation by invoice and currency

Payment Methods
ChequeMost of B2B payments Notes and coins Bankers draftPayment is guaranteed. Credit cards Special presentation of chequesOnly in cases of extreme doubt about customer Transfersfrom a bank account to another

Competition
New technology required major investment in people, risk and technological services and few banks were competing at the global transactions services marketplace. Deutsche Bank and Citibank were two leaders and ABN AMRO was also developing its product range.

Citibank e-Business Strategy

Vision Become the worlds leading ebusiness enabler Aims :

1.Empower local, regional and global customers 2.help them take advantage of the efficiencies and opportunities created by ecommerce.

Citibanks e-Business Strategy

connect
transform

extend

C W H B E r e u m U e b l s a p d e t e d e n c a a u C k b s n n e t e o t m w b c e o a e o r n d r t k g e o a e f s s t b e t h a r e

Six Key Elements ofCitibank e-Business Strategy

Citibanks e-Business Structure

In March 2000 Formated Internet Operation Group responsible for Internet activities between e-Citi and the banks business unit. In April 2000 e-consumer and ebusiness units In May 2000 e-capital markets and easset management units

Citibanks Alliance Strategy

Citibank tried to excel all facets of e-business but failed to do so. Clients and technology were constantly changing and it was hard to keep up to clients needs. Citibank decided to form alliances in 2000

Citibanks Alliance Strategy

Key technology players to form FinancialSettlement Matrix.com Oracle Commerce One Inc. SAP AG Wisdom Technologies Bolero.net

FinancialSettlement Matrix.com
A Company to connect buyers and sellers in emarketplaces while performing activities such as:

Payment Processing Credit Services Other services

through multiple participating banks and financial institutions.

Connect
Customer convenience is important for Citibank Provide clients with various options to access Citibank Internet provides the flexibility to meet this demand

CitiDirect
Designed for corporate customers Customers can perform various transactions on-line Transactions take place in real-time In 8 months, 1000 customers were using it

Transform
Back office activities(loan prcess, cash mgmt) Not at the forefront of a customers mind Traditionally was a function of bank-customer relationship Citibank realized that, this function, required more that 200 data centers, should be commoditized.

Regionalisation for Transformation

Process involves consolidating all data centers and merging them in Singapore Data is centralized In May 99, the number of data centers were decreased to 60

Regionalisation Approaches Considered

Take the biggest infrastructure already existing, and build it up to replace all the smaller centers Greenfield approach (ask where to get the best balance of all factors of production and start from scratch) Available people and skills Pure cost of labor (especially for lower-skilled areas)

Benefits of Regionalisation
Provided continual improvement opportunities Reduced the time cycle for transactions Minimized error rates to near zero Yielded new efficiencies for Citibank and customers

Internalizing the Web

Transformation focused on Workflow automation Employees could access to information in a much easy and reliable way: no phone calls, no documents checked

Centralization made it easier to access data through various security systems: e.g. signature verification

Straight-through Automation: by
Continuous improvement Artificial intelligence projects to reduce error rates Real-time, on-line transactions created a certainty for customers

Achievements
First in the financial services industry to receive a quality award Customer surveys favored Citibank in areas of accuracy, timeliness, accessibility and responsiveness Processing became one of Citibanks unique selling propositions

Extend
Building a new global infrastructure gave Citibank the opportunity to: Deliver e-products more quickly and more efficiently Ability to install capability improvements from one regional area to world-wide

Extend
Priority was to move all corporate customers to CitiDirect The greatest concern of most customers was security In 2001 Citibank understood that it must provide old methods too for conservative SMEs and on-line services for MNCs

The Citibank Advantage

Global Reach 268,000 employees in 100 countries. Pay importance in emerging markets which consists of 86% of worlds population and 43% of worlds purchasing power Strong Brand Innovative, global bank offering excellent customer service Continuous Investment in Technology Heavy investment of technology Provide customers most cost-effective, cuttingedge, reliable and secure solutions

Conclusion
The Internet changed how institutions made strategic decisions. Customer expectations and needs were increased. Citibank responded by:
Web enabling access points to allow customers connect to Citibank Building a new global infrastructure to deliver products and services on-line Integrating products in new ways

THEEND Thanksforyourpatience.