Table of Contents
Strengths
Stable financial performance – Citigroup has enjoyed long time stable high level of income with its income averaging above $17 billion in 2015 and $15 billion in 2016
Well recognized brand image – For over a long period of stable operations, the bank has created a well established brand name which many customers want to relate to. Euro Money has presented Citigroup with several awards including being the best investor in emerging markets
Global leader in credit card Issue – Citigroup are the global leader in credit card issue with over 140 million accounts, over $421 billion in annual sales and well over $140 billion in average receivables across the globe.
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International retail brand partnerships – City group has partnered with several retail brands including Best Buy, Exoon and Mobil, Macy’s, Sears, Shell and The Home Depot, over a decade long partnership with the American Airlines among many others
Big market share – the bank offers wide range of services including but not limited to loans, checking and savings accounts, small business services and wealth management advice. Its global customer base serves over 110 Million customers
Fast emerging Asian customer base – Due to its huge population size, Asia has attracted wide range of investors, financial service providers have not been left behind with Citigroup opening several branches in India, China and many more countries within the region.
Focus on corporate social responsibility – Citigroup started a 10 year $100 billion initiative named Sustainable progress Initiative dedicated to financing solutions that produce low emissions. It has too risen its lending to small and micro businesses by more than $11 billion.
Commendable investment on digitization – Citigroup is indisputably a great investor in financial services digitization in the recent past. They recently announced their own mobile payments solution to offer their customers with a simple, reliable and fast option for online, application and in store app payments.
Weaknesses
Depending on the US and Mexico excessively – Citibank has payed attention to three main markets which made its business hierarchy thinner in the year 2016 with the purpose of improving its work and operations and to ensure that the business is running smoothly and to ensure the availability of adequate materials, it release the idea on the willingness to leave Argentina, Brazil and Colombia. In the past few years it has declined its headcount by more than 28000 as well assets by more than $130 billion and legal entities too by around one third.
Spoiled picture due to FIFA bad behaviors scandal and allegations of money laundering – The bank had accepted to clear its image by making payment of around $97.4 in May, 2017 in order to reach a decision following the examination into Banamex US. Banamex is one of the biggest banks in Mexico which Citi bank has attained in 2001.The bank exchange from US to Mexico was led by Banamex USA.
Very tiny examinations were done although many flags were rised on purpose over suspicious transfer. A lot of cash which is believed to have been gained in an appropriate way that is why the justice governing body had to give it a fine. The bank was expected to provide a testimony in the FIFA issue as well. When Citi bankaccepted to do payment of the fine that is when the justice governing body will not keep record of any criminal activities against the bank attached to unintentional failure of Banamex.
Opportunities
More opportunities to be present in major International economies including the Asian markets – Due to the fact that Citi bank is present in more than 19 countries in the world in which the economy is improving rapidly this means the bank has increased chances to do business and expand.
Business expansion chances worldwide to cut its dependence on the US market– The bank will be existing in almost all the countries in the world and it will no longer be only focusing on the US market instead its target market will be the whole world.
Collaboration with many retail brands– The bank has gained opportunities to work together with several other financial companies including Costco, Home Depot and the Australian brand Coles.
Sustainability increased chances in CSR– The brand also places focus on CSR and sustainability. This is of paramount importance since that bank can increase its financial positions and be able assist in the development and better living of the society.
Threats
Political and legal issues – The primary risk factors of Citi bank business are the legal and political issues. Both inside US and outside there are ongoing regulatory changes that can be dominating risk issues for Citi. These types of matter changes the way the bank is doing its business and whatever rules and compliances will be passed ot, the management of the business itself has to make sure that it adheres to them which can also be costly. This affects the bank’s financial progress and budgeting. All financial institutions are facing these challenges which affects them financially.
Competition – Competition is another important risk factor for Citibank. The number of financial institutions which provide the very similar services and products to potential customer is increasing day by day. In Asia and US too their number has increased rapidly. This means that the bank is competing with many other businesses and it shows the need for Citi bank to put more effort in innovations.
Unexpected issues occurring from Brexit – Britain’s decision to leave EU has caused an increase in unexpected matters which affect the business in a negative way which might lead to Britain to make changes to its entire business strategy in the markets.
Rise in the rules and regulatory risks manifesting in the market–There are strict rules and regulations in the Asian market that the bank has to comply. China is already well known for the level of Red Tape. India too is not far behind and for a financial institution trying to penetrate the market and keep its presence going strong might be a hard nut to crack.
