Citi Creates Division Dedicated to Fintech
New York banking giant Citi announced late last month that it would create a new division solely dedicated to financial technology.
Citing data collected by its researchers, Citi said most of its clients use mobile devices to access the company’s services. Up to 43 percent of millennial clients never visit a local branch of the company to access Citi’s services. The bank is now pushing for a “mobile-first future” by preparing for massive corporate restructuring.
Citi is following many other large and traditional banking institutions in a push for a more up-to-date and technology focused business. Citi has previously made some attempt to move into the fintech scene with a number of measures, including launching a mobile app in 2007.
However, Citi has said the transition hasn’t been quick enough, noting that the financial technology sector has risen rapidly over the past several years.
The New York bank hopes to have a new suite of services and finish its corporate restructuring in the US by late 2016, with a global launch happening soon after. Part of the transition will include shutting down traditional branches, 200 of which have already been shutdown.
Another key factor for the restructuring is the associated cost savings. By transitioning into a more digital service, Citi cut operating expenses in the second quarter of the year by 3 percent.