Citi is done getting smaller. Now it has to get better.

Citigroup has completed its major organizational restructuring and is now shifting focus toward growth and operational efficiency. For retailers and service providers who utilize Citi’s retail services or co-branded credit cards, this signals a period of stabilization. The bank is moving away from divestitures and toward improving its core banking products, including its massive consumer credit and lending portfolios. The bank's leadership is under pressure to improve profit margins, which likely means a heavy investment in digital user experiences and more automated underwriting processes. For merchants, this transition suggests that Citi will be looking to deepen its existing partnerships rather than exiting markets. You should expect to see Citi roll out more modernized payment tools and potentially more aggressive customer acquisition strategies for their retail card programs. However, because they are focused on 'getting better' (efficiency), there may be stricter scrutiny on portfolio performance. If you offer financing through Citi, keep an eye on how they update their technology interfaces, as they aim to compete more directly with nimble fintech competitors. The goal for Citi now is to prove that their large-scale banking model can be as fast and reliable as the newer BNPL players.

Source: Tearsheet

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