Citibank eBusiness Strategy

Description
about e business strategy of Citibank. It covers their strategy connect, transform, extend. The advantages of their strategies are listed.

Citibank's e-Business Strategy

Introduction
? Citi’s Customers
? 70% of profits from Corporate Customers

? Services offered by Citi to its customers
? Transaction services ? cash management and

trade services ? Corporate finance services ? working capital finance, asset based finance and trade finance ? Treasury market services ? hedging and foreign exchange

Challenges

? Pressure on banks to increase profit margins ? Operating Expenses growing ? reduced profitability ? Subprime crisis put additional pressure on banks ? Corporate customers moving towards internet selling ? Customers looking for ways to improve their

traditional payment processes
? Electronic invoicing, automatic application of payments to

accounts receivable, online payment guarantees … ? Multi-currency payment management, payment aggregation by invoice & currency

? Bank to Corporate Connectivity ? MNCs trying to disintermidiate banks

? Banks investing in technology to provide better

products & services
? Deutsche Bank ? Global payment systems

? Regulatory pressures

Citibank’s E-Business Strategy

• Web enabling of core services of the bank

• Reach new markets, new customer and new products

Connect
• Draw the full range of Citibank’s services to deliver integrated solutions

Extend

Transform

‘Connect’
? CitiDirect allowed corporate customers to do full

transactions online anywhere in the world (2000) ? CitiDirect upgraded to CitiDirect Online Banking (2003)
? Facilities offered in emerging markets

? Back offices of 90 countries linked

? New platform developed, Treasury Vision (2006)
? Connect to client’s enterprise resource planning

systems ? Forecast cash management using analytics

‘Transform’
? Transaction processing activities can be

commoditized ? Regionalization
? Consolidation of Data Centers to Singapore ? Resulted in reduction in cycle time, reduced error

rates
? Internalization of the Web
? Promotion of e-workplace

? Automation
? Artificial Intelligence projects ? Usage of History

‘Extend’
? Deliver products and services online globally ? Move all customers into CitiDirect
? Difficulty with SMEs ? Price incentives

Citibank’s Advantage
•Global Reach

•Strong Brand
•Continuous Investment in Technology

THANK YOU



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