Transcript: • Citi maintained a competitive edge by making right use of ‘new entrants’ like web-based services in the banking industry . • They also countered customer power by making banking services available for customers all across the globe, without any bar on different currencies. Impacts of Internet Extend During the process of transforming assets to digital assets Citibank consolidating all data centers by moving them to a single geographical location. Overall Citi achieved success during this transformation by optimizing global data networks, standardizing app development processes and consolidating vendor networks. • Threat of substitute products brewed rivalry amongst competitors. e.g. db-Ebills payment service by Deutsche bank and few other products by ABN Amro • Still some sections existed where internet was not being accepted fully. .There was a need to increase an awareness among such markets and to gain a market share in segment like SMEs. Differentiation Competitive Advantage Competitive Landscape Global Reach Citibank invested heavily in technology to maintain its position as a premier supply of cash management & transactional banking services. The main goal was to provide corporate customers the most cost-effective, cutting-edge, reliable and secure solutions. The main difference in the MNC and SME market was, the SME segment were very conservative and skeptical to move into electronic banking as they did not have faith in the security system despite Citi’s sophisticated security procedures. To attract more SME’s to CitiDirect, Citi included a pricing incentive scheme. Customer Convenience Citibanks Business Aim: To serve people by creating efficiencies & opportunities through e-commerce Envisioned to become the world's leading e-business enabler. Adopted a strategy to deliver its vision: Connect Transform Extend e-Business Strategy to Achieve Success Thank you! Regionalisation: Consolidation of all data centers & moving them to Singapore. Internalising the Web: Involved workflow automation, mainly integrating web into business processes. Advantages of automating: fast processing of transactions, secure databases, reduced error rates, improved efficiency for customers & employees. Over the years Citibank had developed strong brand recognition. Customers regarded Citibank as an innovative , global bank offering excellent customer service Citibank implemented an “Embedded Bank” Strategy. built a broad customer base offered diverse products actively participated in the community recruited staff and senior management from the local population Corporate client base included MNC's, Financial Institutions, Government Sectors, Local Corporations and SMEs. Differentiated itself from other banks through customer service. Offered telephone hotlines, relationship managers. Most importantly continuously invested in technology to support front-end and back-end electronic banking systems Transformed Business Strong Brand Image Incorporated in 1812 as Citibank of New York Citibank N.A was adopted in 1976 after several mergers. After merger with Travellers Group in 1998, was renamed to Citigroup Inc. Most profitable bank in US by 1997 with profit of $3.59 billion Ultimate Goal: to provide customer convenience. Ways to Achieve it: Providing clients more channels to access Citibank. Web enabling core services. Building an infrastructure as a foundation for all services- CitiDirect. Clients were already looking for a smarter ways to do a business Because of ease of access provided by internet bargaining power of buyers increased. Some MNC’s were trying to implement their own solutions while some were ready to form an alliance with existing banks. There was a threat of new entrants because of a .com boom Continuous Investment in Technology Connect Introduction Serving Different Markets Citibank built a new global infrastructure that delivered e-products more quickly & efficiently to customers. Capability improvements in one region were to deployed in other regions. Enhance system according to changing customers needs. Citibank’s motive: Move all customers from traditional electronic banking to CitiDirect. Strategy For Corporate Customers Money Management to e-Business Transform
Transcript: Banking on bad press Presented by Professor Brian To “Too big to fail” is the standard rationale for federal bailouts of banks, automakers, and insurance companies. Citigroup (C) may have been too big to succeed in a rapidly changing business environment Once upon a time, long before the Troubled Asset Relief Program was invented, Citigroup turned itself into a megabank that posted billions in earnings each quarter Mortgage-backed securities punched a hole in the business model, and top managers were slow to recognize the risk The bank’s varied operations and what some called its “Balkanized” management made it difficult to take corrective action quickly All the bank lacked were adequate controls, accountability, and the right people atop a vigorous corporate culture As the company fell apart, many mistook lack of smarts for mendacity Nevertheless, the company made sense when Sandy Weill merged Travelers Group with Citicorp in 1998 to create what was ballyhooed as a “financial supermarket.” In retrospect, it just looks stupid, greedy, and a trifle evil In June, Citigroup lost the status of being of a component of the key 30-stock Dow Jones Industrial Average “Being removed from the index has no impact on the company strategy nor our efforts to return Citi to sustained profitability,” says Alex Samuelson, spokesman for Citigroup On the way down, Citigroup pumped out big, billowy clouds of optimism and sometimes acted as if it weren’t challenged by changing circumstances Last January, with its stock trading at about $3.67 a share, Citigroup spent $50 million on a new private jet after taking $45 billion in taxpayer funds to stay alive Citigroup’s decision to buy the new jet may not be the catastrophe it appeared to be because the company ordered the plane two years ago when it was flush Citigroup apparently forgot, that when you’re kept alive with taxpayers money, it’s smart to buy a coach ticket on a commercial flight to at least create the image of frugality A day after the story broke, Citigroup canceled the order “Citi continually explores ways to reduce all its assets, including aircraft," Michael J. Hanretta, a company spokesman, said in a prepared statement "Citi is exploring all its options for these assets, including the potential sale or lease of the aircraft. It is important to note that TARP funds will not be used for these purchases." Andrew Hall is in line to get a $100 million bonus the phenomenally successful energy trader at Phibro, a unit of Citi Hall's contract entitles him to a $100 million bonus He is the Solomonic attorney who administered the 9/11 Victim Compensation Fund and is now the Obama administration's Wall Street pay czar Feinberg will have to consider whether it is proper for an institution that, without substantial taxpayer support, couldn't pay $100 bonuses to pay a $100 million one Should Hall not get paid as he sees fit, he could simply retire or take his band of traders elsewhere thus depriving Citi—and its shareholders—of the profits he could create Citi CEO Vikram Pandit, of all people, should know that committing huge sums of shareholders' capital to retain the services of a hot trader doesn't always pay off In the spring of 2007, Citi spent close to $800 million to acquire the hedge fund Old Lane Essentially, Citi was paying for the privilege of employing its founders, who had racked up impressive results A year later, after the fund suffered losses, Citi basically folded it another public relations disaster But given the compensation dynamics of the industry, it's unlikely shareholders would see a lot of those gains were he to stay This puts Citigroup in the tough position of rewarding a star or incurring the wrath of taxpayers because it received public money to stay afloat In what may be the final kick down the stairs, Travelers Companies (TRV) replaced it on the index Shareholders are paying an awful lot for the services of smart traders at these publicly owned hedge funds But in order to make good on the deal, Citi, which is now hugely supported and partially owned by taxpayers, must get the blessing of Kenneth Feinberg
Transcript: Problems Evaluators of scorecard systems Thank-you for listening Examples of above par MINOR PROBLEM Internal process inaccurate and inconsistent results in an unreliable scorecard evaluate the operating and fraud losses using control measure Review and monitor internal processes by external auditor Not as much about recovering the money, but instead how could they avoid the loss from possibly growing Look at how Citibank's internal business processes operate and how they review and measure their controls Implement a new audit plan - ensures processes are up to date and adaptive to changes low risk areas: reviewed every 3 years moderate risk areas: reviewed every other year high risk areas reviewed every year Savings will create more resources 75 Customer service results are based on factors outside of James' control Diverse customer base, affluent society, higher expectations of services received - Customer satisfaction and control goals are common to all branches Only 25 people interviewed for survey, diverse customer base may not be reflected Harsh system Customer service measurement bases of scorecard Any questions? Evaluations completed by an impartial person Increase from 70 to 76 May not have as good of an understanding of James Employer/employee issues may arise Cost Customers may not want to participate Achala, Alex, Erin, Qiu, Thadcha. Doesn't truly reward - James increased from 53-72 and still was only awarded a below par New system, so managers would still be getting used to high customer service demands. 82 RECOMMENDATIONS Cost Resistance to change Currently, the customer service measurement brackets and incline are: 80+ is above par 74-79 is par 73 and less equals below par If customer satisfaction had improved 6 points with no regression over 2 quarters and it was above 77, it was given above par. Bias in Lisa's scorecard rating Reluctant to give a below par rating Well being of the division Valuable member for the team James' results are inaccurate - below par in all 4 quarters Subjectivity to People and Standards influenced by the observer's personal judgment criticized and scrutinized as they are open to interpretation and opinion. 63 Decrease from 61 to 60 Increase from 64 to 69 Examples of below par Who will be this impartial person? supervisor from one of the other divisions or branches of Citibank Removes bias Makes scorecard more accurate - enables in better decision making Alleviate subjectivity in People and Standards measurement CITIBANK James is the branch manager of the Los Angeles Citibank branch James reports to the area Manager Lisa who works closely in his annual review Implementation of a new score card was introduced to increase customer satisfaction critical to long term success of the business The new score card Financial measures Strategy and Implementation Customer satisfaction Control measure People and Standards BACKGROUND To build on their current knowledge Will be more capable of meeting diverse customer needs Increase customer service ratings Goal congruence Adds to knowledge and skills of employees Examples of par Training and development of employees Cost Review of the internal processes may not alleviate the problem Alter customer service measurement - Incline reward system We propose to keep the same brackets, but change current 6 point over 2 periods above 77 method. Instead; Improvement between 3-5 in a quarter is equal to a par Improvement greater than 5 is equal to above par If a decrease in satisfaction or no improvement, what ever bracket they fall into are their results. Remove ATM and phone ratings from customer survey - external factors outside of control Make the sample a percentage of customers; they are currently only surveying .07% of company. Proprose a change to 5% (175) Lottery - offer $1000 to motivate customers' participation Customer service survey
Transcript: Wowing template. Click through in 20 steps. But we can move beyond the present. Why? Here is something small... Photo credits: 'horizon' by pierreyves @ flickr Takeaway. Bye. It could be much larger! Here is some context. Provide some common ground. Or something from the present, that we should look beyond. So... An Example: So.... 30 CITIBANK
Transcript: CITIBANK'S E-BUSINESS STRATEGY OTHER IT STRATEGIES Securities and Fund Services Trade Services and Finance Pricing and Customer Service “We have the economy of scale and it is viable for us to do all the back-end processes – because the more processes we do for more customers, lower the unit cost.” – Caroline Wong, Head of e-business Group, Citibank March 2000 – Stanford Weill formation of internet operation group, a high level committee charged with responsibility for internet activities e-Citi -> an incubator for internet initiatives and the bank’s business units April 2000 – infusing internet into all consumers and corporate business activities – e-Consumer and e-Business . May 2000 – e-Capital market and e-Asset management CITIBANK'S E-BUSINESS STRUCTRE CONNECT-CITI'S EBUSINESS STRUCTURE CITI BANK'S E-BUSINESS STRATEGY Difficult Operational Environment Change of administration, Vikram Pandit took over as CEO in December 2007. Smarter, Tougher Customers The B2B market Different clearing methods SWIFTNet Member Administrated Closed User Group Standardized CORporate Environment (SCORE) Competition Regulatory Scrutiny CONCLUSION CONTEXT Global Reach 268000 employees 100 companies Strong Brand Positioned as an innovative global bank offering excellent customer service Continuous Investment in Technology Most effective, cutting-edge, reliable and secure solutions One of the main competitive advantages Enabling corporate customers to conduct their business online Customers with diverse needs MNCs SMEs Issues to address Capture the clients’ total cash-management and trade service needs Lower costs and improve efficiency Create sustainable competitive advantage OTHER SERVICES Enabling corporate customers to conduct their business online Customers with diverse needs MNCs SMEs Issues to address Capture the clients’ total cash-management and trade service needs Lower costs and improve efficiency Create sustainable competitive advantage CITIBANK ADVANTAGE Before 2000 – a strategy that failed Investing millions of dollars to specialize in each area – including software development , system development, front end services. After 2000 - use of partners strengths Partners where oracle, SAP, Commerce one etc. ..contd GAUTHAM SRIDAR SATHISH KUMAR R SUBASHINI VIGNESH R.M. PORCKO VIVEKANANDAN Centralized data for automatic processing. Factors attributing to regionalisation Biggest infrastructure ( Singapore) All factors of production ( Penang) –Greenfield approach Local people and skills ( Sydney). 2007- Cost cutting strategy Decentralized to Centralized Geography based to multi-dimensional Cash and trade services Target customers: MNCs, SMEs, Financial Institutions, Government Sectors Core Products: Transaction Services Corporate finance services Treasury market services THANK YOU EVOLUTION OF BANKING AT CITIBANK CASH MANAGEMENT CITIBANK'S ALLIANCE STRATEGY Movement of money in the most efficient way possible Major needs: accounts payable and accounts receivable Technologies used: ACH (Automatic Clearing House) Customer Initiated Payments Commercial Cards Online Investments => Treasury Vision Target Balancing and Notional Pooling Caroline Wong, Head of e-Business Group. Simplification and Standardization Increase efficiency, lower costs and decrease time to market CONNECT ( WEB ENABLED CORE SERVICES) => TRANSFORM (DELIVER INTEGRATED SOLUTIONS) => EXTEND (REACH NEW MARKET ) CITIGROUP'S ORGANISATIONAL STRUCTRE Customer Convenience Designed for corporate customers - to do transactions online Which includes cash management and trade products and services, enabling customers services online, to reply for inquiries about balances etc. Allow customers to perform functions at any location with internet access. The internet affected how companies planned strategy Technology changed expectations and needs of customers Citibank responded by Web-enabling access points to allow customers to connect seamlessly Building a new global infrastructure Integrating products in new ways REGIONALISATION Aimed to empower customers and improve B-B-C marketplace and provide solutions. Strategy – Connect , Transform , Extend Global financial services industry were growing at 4.2% Plan announced in IT operations include data centers , existing technologies , application development processes, optimization of global voice and development, vendor consolidation. ..cont'd Jorge Bermudez executive vice president was appointed to lead the e-Business unit. Responsible for developing internet software for corporate clients setting up B-B e-commerce exchanges. It brought people from business line together with people from the internet side of the operations Which combined resources and eliminated duplication and competition. CITIBANK CHANGING GLOBAL ENVIRONMENT Incorporated in 1812 as City Bank of New York Several mergers Citibank N.A. was adopted in 1976 Merger with Travellers Group in 1998 => Citigroup In 2006 325000 staff 200 million customers in over 100
Transcript: P.CITI.CSER Citibank What is Citibank? What is Citibank? Citigroup HQ - New York City Consumer division of financial services multinational Citigroup Founded in 1812 as the "City Bank of New York", and later became "First National City Bank of New York" The bank has 2,649 branches in 19 countries What does Citibank do? What does Citibank do? Those products and services include: • consumer banking and credit; • corporate and investment banking; • securities brokerage; • transaction services and wealth management; It provides consumers, corporations, governments and institutions with a broad range of financial products and services What kind of calls/tasks does the project get? And what about the project? Calls Inbound Calls Analysis of failed transactions; Citimanager login issues; Declined transactions; Outbound Calls Payment issues; Credit refund; About the Project P.CITI.CSER is currently located on Teleperformance's site Infante Santo but, for now and due to COVID-19, all of the agents are working from home (WAHA); It's an Inbound project, dealing also with some BO/Outbound tasks; Right now the project has 94 active Agents, 6 Team Leaders and 20 Markets; The client pays per ready hour; KPI's Main KPI's SLA - 80% ASA - 20 seconds AHT - 400 seconds Abn Rate - 3% Citibank's PDS sent to the operation Markets Skills Management Bench Ex1 - Portuguese Agent Ex2 - French Agent Pros/Challenges Pros/Challenges Weekly Deck (In Development) Pros Challenges Operation's Inexperience Communication w/Operation Skills Management Strategy Behavior of the Agents Breakmaster WAHA (due to COVID-19) issues with Token/Citrix
Transcript: Presented by Alex Frantzeskakis Citigroup Public Appeal The court of public opinion Michael Corbat, CEO Problem Offering Trust We are too large to allow any loss of trust Socially conscious customers pay close attention to the news, especially news that affect them. Case Study Before After Case Study Strategy Solution Paper Reimagining Physical Reimagining Q&A Thank You Edward Skyler Executive Vice President Global Public Affairs Barbara Desoer Chief Executive Officer Citibank N.A.
Transcript: Intrest Rates Advantages Work Cited http://www.ispot.tv/ad/7l0h/citi-revolution-foods-making-cities-healthier Citi Bank Background and History "Citi's mission is to serve as a trusted partner to our clients by responsibly providing financial services that enable growth and economic progress." This bank has been open since 1812, so just a little over 200 years. Checking account interest rate- 0.01% They have good and reliable customer service online and over the phone Video You have online banking which makes everything more convenient. You get to manage your bank , and credit card account at the same time .Across the USA Citibank has over 1,000 branches . 34,000 ATM's in total- more than 2,500 of them being located in Citibank branches and there are more than 7,000 located in 7-Eleven stores in the USA .Nearly 4,000 branches over seas .ATM transactions are free to all Citibank Card holders .For people who are a non Citibank Card holder an ATM with drawl is currently charged $2.50 . There are roughly 19 Citibank locations in Connecticut the nearest one is located in Danbury . Top notch card security and free assistance for identify theft problems Citibank was founded in 1811 in New York City by two merchants who aligned with President Madison and with help from him they applied to open a bank Citibank In order to open a debit card you must be at least 15 years old. That card enables you to withdraw cash from ATM's as well as making deposits , if you are 15 your parents can have the option of being able to control limits. The card is an anywhere any time card http://www.citigroup.com/citi/about/mission-and-value-proposition.html https://online.citi.com/US/JRS/pands/detail.do?ID=FinancialCenters https://online.citi.com/US/JRS/pands/detail.do?ID=CurrentRates&JFP_TOKEN=LLTXPGLB https://online.citi.com/US/JRS/pands/detail.do?ID=Rewards http://www.mybanktracker.com/news/2014/03/21/citibank-out-of-network-atm-increase-april/ http://www.ispot.tv/ad/7l0h/citi-revolution-foods-making-cities-healthier Locations and ATM Fees Citibank has 2 types of rewards 1) Citi thank rewards - you can earn points if you purchase with a Citi ThankYou Preferred Card, Citi ThankYou Premier Card and Citi Prestige Card 2) Citi Cash Back Program -Double Cash Card where you earn cash back TWICE on every purchase with 1% when you buy and an additional 1% as you payPlus our low Intro APR for 15 months on purchases and balance transfers Why Choose Citibank?
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