Goodbye, Citibank

Known as the fifth largest issuer in Australia’s credit card market, trailing only the big four banks, sadly, Citi has announced it will end 36 years of consumer banking in Australia. This announcement comes less than 6 months since neobank Xinja handed back its banking license. 

Following a strategic review of its business, Citigroup will also shut down its consumer banking operations in 12 other markets across Asia, Europe and the Middle East. 

Citigroup is an American multinational investment bank and financial services corporation headquartered in New York City. Citigroup owns Citicorp, the holding company for Citibank – the first foreign bank to be granted a banking licence in 1985.

Citigroup, which used to be the world’s largest financial-services firm, is struggling to keep up with rivals. Its chief executive Jane Fraser said it “does not have the scale” to compete in these 13 markets. Ms Fraser took over Citi in September last year – the first woman to become chief executive of a Wall Street Bank. 

46 days after taking over, Fraser had done a candid assessment and launched a refresh to simplify the bank inside and out. Citi is now doubling down in the areas that they want to focus on, where they see the stronger growth and return opportunities for them. 

Quite apart from being a bank with a proven combination of local expertise and global knowledge, Citibank is known for their friendly, respectful work environment and for employing highly skilled and dedicated team members. Not that there weren’t downsides. Over the years, the reviews show Citibank’s reputation for reliability, service and professionalism has been slowly fading away. 

The bank will no longer offer credit cards, home loans, saving accounts and term deposits to Australian customers. 

In a statement, Citi Australia CEO Marc Luet said “During the sale process, there will be no change in the way Citi serves its consumer banking customers. Consumer operations will continue to operate as they do today”. 

"We are committed to the Australian market and the move will allow us to focus our resources on businesses that can drive stronger growth, deliver scale and enhance returns over the long run.”

From here on out, Citi’s Australian investment banking team will remain in Australia but will focus on investment banking, capital markets, advisory, market and security services, commercial banking, treasury and trade solutions. 

Citi customers will simply have their products switched to the new bank, largely depending on when Citi is bought and whoever that might be or they can switch banks themselves and refinance their mortgage ahead of time. 

Promises to focus on using its institutional division to help grow the company through financing Australia’s transition to a low carbon economy (which is a rather exciting prospect, we must say)