A Brief Introduction of Citibank

On June 16, 1812, with $2 million of capital, City Bank of New York (which is now known as Citibank) opened for business in the City of New York in the United States to serve a group of New York Merchants. First headed by Samuel Osgood, and taken over by Moses Taylor, it became the largest bank in the United States by holdings as of March 2007. Citibank is now the corporate and consumer banking arm of Citigroup.

            Citigroup was previously known as First National City Corporation in 1968 and was renamed as Citicorp. In 1998, Citicorp merged with the Travelers Group to form Citigroup Inc. Citibank. Under the trademark of Citigroup’s umbrella, includes Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Citicorp and Travelers Group $70 million merger resulted in Citicorp, the 2nd largest commercial bank at that time and Travelers Group which was a leading insurance and investment banking company.

            Previously, Citibank was also involved in the Enron Litigation. In 2002, Salmon Smith Barney was under investigation for involvement in the Enron Corporate fraud. April 28, 2003 brought an announcement by Citigroup that Citigroup Global Markets Inc. (formerly known as Salomon Smith Barney) had reached an agreement to resolve outstanding investigations. On July 28, 2003, Citigroup agreed to pay a $130 million fine to the Securities and Exchange Commission and the New York State. As a result, Citigroup will not be liable for any wrongdoings.

            In Malaysia, Citibank reaches out to its customers through three main branches in Kuala Lumpur, Penang, and Johor Bahru. Due to the loosening up in some of the banking regulations in Malaysia, four new branches have been newly established by Citibank to help to further increase the convenience of its customers. The four new branches are located at Klang, Damansara Perdana, Bukit Tengah, and Puchong. Among the various services provided by Citibank includes credit cards, retail banking, financing, corporate and investment banking, life insurance, and investment management.

Recently, Citibank has plans to initiate a 17,000 job cuts which amounts to 5% of the Citigroup’s global workforce. Despite this, employees of Citibank Bhd in Malaysia are spared from the reduction in Citibank’s workforce. Instead, Citibank Bhd Cards Business director, Vipin Agrawal said that they are still continuously hiring people in Malaysia. This is due to the healthy Malaysian credit card market (8.8 million cards in circulation) which has increased rapidly from 7.9 million in 2005. Citibank aims to maintain its 20% of market share in 2007.

Citibank has been known world wide for being one of the largest commercial banks, spanning across six continents and over 100 countries. Together with its 200,000 over employees, it continues to be a major player in the banking industry. Despite this, due to the constantly changing environment and also the rapid increase in knowledge workers in the society, upward potential and mobility for Citibank to grow is almost limitless. As Charles Darwin, father of the theory of evolution, once said, “It is not the strongest species that survives, but the species most adaptive to change.” The same goes to the banking and finance industry.

                                                    

            Therefore Citibank must not only be the leading pioneer in innovation of financial services but it must also be sensitive to the changes in the current global and local environment. Due to a globalizing world, competition has increased in the banking and finance sector. This forces governments worldwide to loosen the regulations concerning this sector enabling foreign banks to further penetrate into the local market. We can see that Citibank is exploiting these advantages by establishing four more branches in peninsular Malaysia. It is expected that local barriers and regulations will continue to be removed. Therefore Citibank should continue to be on the lookout for opportunities to further reach out into previously impenetrable target market.

Comments
5 Responses to “A Brief Introduction of Citibank”
  1. Me says:

    thanx for the post, helped me with some project, the charls darwin thing is SMART :) ty ty ty !

  2. jamesesz says:

    Dear ‘Me’

    You are very much welcome! Do take any other assignment/working paper that interest you.

    Thank you!

    Yours faithfully,
    Ee Suen Zheng

  3. student says:

    thanks soo soo much.this really helps. :)

  4. diana says:

    thank you so muchhhh

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