Citibank Case Study
HKU197
06/07/02
Citibank’s e-Business Strategy for Global Corporate Banking
Citibank’s Global Cash and Trade division was in the business of managing the flow of money for its corporate customers. It provided the tools and channels for its customers to receive money efficiently and to make payment in a timely fashion. In 2000, intense competition and the dot com boom put pressure on Citibank and its competitors to transform their business in the new economy. In response to these challenges, Citibank made a serious push to deliver integrated solutions that would enable its corporate customers to conduct transactions on-line. Citibank’s e-business strategy – Connect, Transform and Extend – was to Web-enable its core services, develop integrated solutions, and reach new markets. The ultimate goal was to build a single Web-enabled platform for all customers with similar needs. To transform its Global Cash and Trade Division into an e-business, Citibank faced challenges in serving its corporate customers who had discrepant needs. Sophisticated clients, such as multinational companies (MNCs), required custom-built host-to-host product interface. Other customers, such as the small-and-medium-sized enterprises (SMEs), were more conservative and were not ready for web-based solutions. How could Citibank build a flexible and agile e-business product that could capture their total cash management & trade service needs? Given Citibank’s enormous global reach, how could it integrate the Internet initiatives into its overall strategy and create sustainable competitive advantages?
Global Corporate Banking at Citibank1
Citibank was incorporated in 1812 under the name of City Bank of New York. The bank had experienced several mergers since inception. The name Citibank N.A. was adopted in 1976. Following the merger with Travellers Group in 1998, the holding company changed its name to Citigroup Inc. In 2001, the Group employed 268,000 staff across over 100 countries serving
06/07/02
Citibank’s e-Business Strategy for Global Corporate Banking
Citibank’s Global Cash and Trade division was in the business of managing the flow of money for its corporate customers. It provided the tools and channels for its customers to receive money efficiently and to make payment in a timely fashion. In 2000, intense competition and the dot com boom put pressure on Citibank and its competitors to transform their business in the new economy. In response to these challenges, Citibank made a serious push to deliver integrated solutions that would enable its corporate customers to conduct transactions on-line. Citibank’s e-business strategy – Connect, Transform and Extend – was to Web-enable its core services, develop integrated solutions, and reach new markets. The ultimate goal was to build a single Web-enabled platform for all customers with similar needs. To transform its Global Cash and Trade Division into an e-business, Citibank faced challenges in serving its corporate customers who had discrepant needs. Sophisticated clients, such as multinational companies (MNCs), required custom-built host-to-host product interface. Other customers, such as the small-and-medium-sized enterprises (SMEs), were more conservative and were not ready for web-based solutions. How could Citibank build a flexible and agile e-business product that could capture their total cash management & trade service needs? Given Citibank’s enormous global reach, how could it integrate the Internet initiatives into its overall strategy and create sustainable competitive advantages?
Global Corporate Banking at Citibank1
Citibank was incorporated in 1812 under the name of City Bank of New York. The bank had experienced several mergers since inception. The name Citibank N.A. was adopted in 1976. Following the merger with Travellers Group in 1998, the holding company changed its name to Citigroup Inc. In 2001, the Group employed 268,000 staff across over 100 countries serving