Bookmark & Share
SINGAPORE is going to play a pivotal role in the Asian growth of battered United States-based bank Citigroup as it emerges from the shadow of the global downturn.
The banking behemoth, which is one- third owned by the US government following its receipt of US$45 billion (S$65 billion) in bailout funds, sees its highly profitable Asian operations being at the heart of its latest growth plans.
During a wide-ranging interview with The Straits Times, Citigroup chief executive Vikram Pandit said the changes afoot included an enhanced role for Singapore as the bank grows it presence outside of the US, and in its restructuring plans.
'We have always viewed Singapore as an integral part of not just our strategy for Asia, but our broader global strategy,' said Mr Pandit, who was visiting Singapore for the first time as Citigroup CEO.
'In many ways, the retail bank of the future is here...we touch a lot more people than what we serve in the branches and it's how every piece is connected together and that makes it very special.'
Citi has more than 850 customer touch-points in Singapore, including 22 branches. Last year, its consumer banking unit saw a 20 per cent rise in total new-to-bank customers. New customers for its Citibanking segment here also grew more than 40 per cent, largely as a result of its partnership with SMRT.
Last month, Citi unveiled a new $100 million global operations and technology hub here, occupying a 200,000-sq ft purpose-built facility at Changi Business Park.
Mr Pandit said Singapore would remain one of Citi's key centres for innovation and was set to be used increasingly as a testbed, following the successful launch of several new concepts here over the last few years.
Such innovations have included instant issuing of credit cards at branches, Singapore's first credit card with a $500 limit and the country's first 3-in-1 debit card with EZ-Link function for commuting on public transport.
'Innovation is very important and Citi Singapore has done a great job in understanding clients and understanding exactly what their needs are,' he said.
'We're going to grow with whatever the clients' needs are. That I think is very important and, broadly speaking, because it is a global hub, we constantly look at what Singapore can do for us...(and) we're very happy with our presence here.'
Mr Pandit stressed how important it was for Citi to test new products in Singapore, which he sees as something of a standard-bearer for the rest of the world.
'We're in 75 to a 100 of the largest cities in the world, but we think about it (our network) as one bank...so you can take the learning from here and further it everywhere,' he said.
'Somewhere around the world we're setting a standard. In this particular business - the retail consumer business - Singapore is today's standard for us. It is setting the standard for the rest of Citi and actually the standard of excellence for everybody else around the world.'
He also noted that Citi exported 'wonderful' intellectual property from Singapore.
'And I like nothing more than to have many of our retail businesses around the world emulate what's happening in Singapore,' he added.
Retail and consumer banking forms one of the three business lines that will be the focus of Citi's ongoing restructuring plans, he said. The second is the securities banking business and the third the financial services business.
Mr Pandit also fleshed out his vision for Citi to staff for the first time at a meeting here last week.
He told them the business needed to push harder into emerging markets, expand its global network to serve clients anywhere, and build strong operations in major cities around the world.
Citicorp - where the majority of Citi's Asia franchise resides - has been powering ahead. It has reported second-quarter revenues of US$3.6 billion and an 11 per cent rise in net income to US$1.2 billion.
The region also accounted for a quarter of Citicorp's revenues and close to 40 per cent of the unit's global net profits.
'The numbers speak for themselves and it (Asia) is a big part of the earnings power of Citi,' said Mr Pandit.
See also: Citi well-armed to face challenges: CEO
PART OF GLOBAL STRATEGY
'We have always viewed Singapore as an integral part of not just our strategy for Asia, but our broader global strategy.'
Mr Vikram Pandit, visiting Singapore for the first time as Citigroup CEO
Search Property News
