Description
The report tries to answer the basic question of how the ebusiness can lower costs and improve efficiency of the bank.
Citibank E-business Strategy
Citibank was incorporated in 1812 as City Bank of New York. Over the years it has become one of the most profitable banks with annual profit of USD 3.59 billion in year 1997. The three core products of Citibank were 1) Transaction services – cash management, payment and receivables, trade process 2) Corporate finance services – working capital finance, trade finance 3) Treasury market services – hedging and foreign exchange To increase its operating profit it launched the e-business initiative to save company more than USD 10 billion. Problem How Citibank could used e-business to lower cost and improve efficiencies? How could it integrate internet initiatives into overall strategy and create sustainable competitive advantages? How could it build a single web based platform to service all kinds of clients? Analysis It had a lot of experience in all the core banking operations. It had developed a very good understanding of the client needs, their front-end and back-end operations. To keep pace with the development of clients software and technology it formed an alliance with key players like Oracle, Commerce One Inc, SAP, AG, etc to form FinancialSettlement Matrix.com. This brought the buyers and sellers on a common platform. As in the traditional approach the profit obtained from a bank is through its core operations of accepting deposits and giving loans, the difference in interest amount allowed them to earn profits. This initiative allowed them to earn those profits through internet by saving on operational costs. It also promoted the e-workplace where in all paper based a labor intensive operations were automated and transferred on a online platform. It used latest technologies like signature verification, digital imaging for fund transfer system. The integration of all branched allowed them to successfully roll over a improvement in one region to operations all over the world.
doc_783683686.docx
The report tries to answer the basic question of how the ebusiness can lower costs and improve efficiency of the bank.
Citibank E-business Strategy
Citibank was incorporated in 1812 as City Bank of New York. Over the years it has become one of the most profitable banks with annual profit of USD 3.59 billion in year 1997. The three core products of Citibank were 1) Transaction services – cash management, payment and receivables, trade process 2) Corporate finance services – working capital finance, trade finance 3) Treasury market services – hedging and foreign exchange To increase its operating profit it launched the e-business initiative to save company more than USD 10 billion. Problem How Citibank could used e-business to lower cost and improve efficiencies? How could it integrate internet initiatives into overall strategy and create sustainable competitive advantages? How could it build a single web based platform to service all kinds of clients? Analysis It had a lot of experience in all the core banking operations. It had developed a very good understanding of the client needs, their front-end and back-end operations. To keep pace with the development of clients software and technology it formed an alliance with key players like Oracle, Commerce One Inc, SAP, AG, etc to form FinancialSettlement Matrix.com. This brought the buyers and sellers on a common platform. As in the traditional approach the profit obtained from a bank is through its core operations of accepting deposits and giving loans, the difference in interest amount allowed them to earn profits. This initiative allowed them to earn those profits through internet by saving on operational costs. It also promoted the e-workplace where in all paper based a labor intensive operations were automated and transferred on a online platform. It used latest technologies like signature verification, digital imaging for fund transfer system. The integration of all branched allowed them to successfully roll over a improvement in one region to operations all over the world.
doc_783683686.docx