"Citi executive reports success in streamlining retail operations"
In the world of banking, Citi is making waves with its innovative approach to retail banking. With a customer base of about 4 million in its retail segment and 70 million nationally across all consumer business, the bank is not expanding its branch network across the country but instead focusing on key cities like Chicago, Los Angeles, Miami, New York, San Francisco, and Washington, D.C.
Citi's new retail banking head, Kate Luft, who took over in April, is leading this change. Since November, the bank has opened 13 new branches and relocated five others, marking a shift in strategy. This revamped approach emphasizes customer relationships and growing with clients rather than account openings.
The bank's strategy is centred around providing more benefits for small businesses, a sector that Citi's retail banking segment considers one of its five core businesses. However, Citi is not forgetting about its individual customers. The bank has introduced a tiered system, similar to airlines, to simplify retail banking products and enhance customer relationships.
This system, which includes tiers like Citi Priority, Citigold, and Citigold Private Client, groups customers based on their combined average monthly balances. These tiers unlock increasing perks and simplified banking solutions, making it easier for customers to understand and engage with their banking options.
The key aspects of Citi’s tiered approach include simplification of products, customer-oriented communication, cross-selling to wealth management, and tailored benefits per tier. By reducing complexity for both employees and customers, Citi is driving growth in retail banking revenue and deepening loyalty akin to the airline industry's tiered loyalty programs.
Citi is also seeking to leapfrog competitors in the benefits space by giving customers more but keeping it simple, including the recent addition of debit card merchant rewards. The bank's efforts are paying off, with client interactions increasing by 300,000 during the first half of this year compared with the same six months in 2024.
Moreover, the share of personal banking checking households using enhanced direct deposit has grown an average of 5% per year since simplified banking was launched two years ago. Citi has even converted all clients to simplified banking last year.
The bank is also making similar changes on the small-business side, taking the simplification and benefits mindsets and applying them to the needs of small businesses. Citi has seen strong customer response to its move to streamline the path to a no-fee checking account, including funds coming through peer-to-peer payment platforms like Zelle or Venmo.
In the second quarter, $4 billion was transferred to Citigold, the bank's wealth unit, demonstrating the success of the bank's tiered approach. As Citi continues to innovate and adapt, it remains committed to providing the best possible experience for its customers, whether they are individuals or small businesses.
[1] Source: Citi press release, 1st July 2025 [2] Source: Citi Annual Report 2024 [3] Source: Citi Investor Presentation, 1st April 2025 [4] Source: Citi Wealth Management brochure, 1st May 2025
- In the world of banking, Citi's focus on customer relationships and growing with clients, rather than account openings, extends to both individual and small business sectors, as evidenced by their simplified banking solutions and tailored benefits in their tiered system.
- Citi's strategic shift emphasizescustomer-oriented communication, cross-selling to wealth management, and providing more benefits for small businesses, all while keeping it simple, as seen in their debit card merchant rewards and the successful conversion of all clients to simplified banking last year.
