Santhosh Kumar

Rajkumar
Citibank was incorporated in 1812 as
City Bank of New York
Merged with Travellers Group in 1998,
changed its name to Citigroup Inc.
In 1990s, Citibank focused on
customer service
In 1997, one of the most profitable
banks in the U.S.
In 2006, 325,000 staffs serving 200
million customers in over 100
countries
In 2007, Citibank face a tough
decision along with subprime
mortgages
In 2000, Intense competition and dot com
boom force Citibank and its competitors
transform their business.
The strategy was Connect, Transform and
Extend.

There were different needs for different
customers (MNCs and SMEs)
How could Citibank integrate the Internet
into its strategy and create competitive
advantage?
Transaction services: cash management,
trade and custody services
Corporate finance services: working capital
finance, trade finance, asset based financing
Treasury market services: hedging and
foreign exchange

In pricing policy, Citibank emphasized on customer
services(response time,technology, support)
By offering outsourcing Citibank,it Secured all the
businesses from the customer
Gained a total relationship with the customer
Obtained economies of scale with a large number
of customers
Result,Client minus paper based payment and
client could concentrate on core business.
All happened due to better and comprenhensive
use of technology.
Large Corporation wanted to sell products
directly via internet and not wholesalers.
Demand for online E Business solution
grew.Eg:online payment collection and web-
enabled financial processes.
SME were also involved in Internet.Wanted
online services
Clients were looking for improving their
payment processes. They demanded
electronic, invoicing, automatic application of
payments to accounts receivable,multi
currency payment,online payment gurantee.s
Need for improvement in their payment processes.
They demanded electronic, invoicing, automatic
application of payments
SWIFTNet,SCORE
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.
MNC who developed their own banking
solutions products

Formation Internet Operation Group:
committee charged with spreading
responsibility for internet activities
2 unites created (2000): E-consumer and E-
Business(aim to infuse internet into all
consumer and corporate banking activities)
In May 2000 E-capital markets and E-asset
management units
Created as division of Citis Markets &
Banking.
Main Job-integrated cash management,fund
services,securities services,trade services
Aim-Customers have control over financial
position,increase efficency and reduce cost.
Over 95% Fortune companies tapped GTS.
Customer Convience (web enabling services)
Key to provide more channels to access
citibank ,its products & Services.
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
Transaction processing was a
headache(involved lot of paper work)
Responsibility of Bank to take care of TP.
Regionalization
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

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

According to an online banking report
published by Ernst & Young, the transaction
costs of the various banking channels are as
follows:
Branch $1.07
Call Centre (human) $0.85
Automated Response System (AVR) $0.44
Automated Teller Machine $0.27
Dialup PC banking 1.5 Cent
Internet Banking 1 Cent

Number of active Citibank Online customers
New accounts opened through Citibank Online
The degree of innovation
Extend to which the new functions are integrated
within the business model
Technology: ( In-House or Outsourced? )
Large resources
Ubiquity
Security
IPIN
Secured Login
Automatic time out
Automatic lock out
Digital certificate from Verisign
Execution
IS audit
Meet the information criteria established in COBIT
Aspects to Review
Due diligence and risk analysis are performed
before the bank conducts Internet banking activities
Due diligence and risk analysis are performed
where cross-border activities are conducted
Internet banking is consistent with the banks
overall mission, strategic goals and operating plans
Internet application is compliant with the defined
and approved business model
Huge legacy systems to carry forward
Credit Bureau
Partnership with industries
Government Encouragement
Priority Sector
Credit Guarantee
Convergence
Financial Services
e-Solutions
Value Added Propositions

Thank You!!