Citibank: Launching the Credit Card in Asia Pacific
Citibank: Launching the Credit Card in Asia Pacific
Citigroup is an American multinational financial services company based in New York City. Citigroup was formed from one of the world 's largest mergers in history by combining the banking giant Citicorp and financial conglomerate Travelers Group. Nowadays is one of the world’s largest banks. In 2010 was in 22nd position worldwide, ranked on its total assets. Finally, it has the world 's largest financial services network, spanning 140 countries with approximately 16,000 offices worldwide, 260,000 staff around the world and holds over 200 million customer accounts.
In 1989, Citigroup tried to penetrate in Asian Pacific countries by establishing new ways of payment such as credit card. The risk was high and the New York headquarters should take a decision soon, in order to face the rival banks.
The Asian Pacific countries (Australia, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, Taiwan and Thailand) are emerging markets and their rapid growth economies were incredible for several years until now. Since 1978 Citibank has a representation there, but approximately 10 years later (in 1989) launched the most innovative service, a new product named credit card. Citibank’s mission in the Asia Pacific region was to be the most profitable provider of financial services to an increasingly affluent and middle-income market.
First of all we should bear in mind that entering into new markets means that Citibank has more opportunities to sell the same product to multiple clients or sell multiple products, such as Citibank’s core products, car loans, deposits and mortgage products, to the same customer. Also, in some countries there are very large population potential customers. In the sector of security, Citibank has quite high technology that can make users feel safe.
On the other hand, many people express doubts about this venture. There are many regulations designed to protect local banks and
Citigroup is an American multinational financial services company based in New York City. Citigroup was formed from one of the world 's largest mergers in history by combining the banking giant Citicorp and financial conglomerate Travelers Group. Nowadays is one of the world’s largest banks. In 2010 was in 22nd position worldwide, ranked on its total assets. Finally, it has the world 's largest financial services network, spanning 140 countries with approximately 16,000 offices worldwide, 260,000 staff around the world and holds over 200 million customer accounts.
In 1989, Citigroup tried to penetrate in Asian Pacific countries by establishing new ways of payment such as credit card. The risk was high and the New York headquarters should take a decision soon, in order to face the rival banks.
The Asian Pacific countries (Australia, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, Taiwan and Thailand) are emerging markets and their rapid growth economies were incredible for several years until now. Since 1978 Citibank has a representation there, but approximately 10 years later (in 1989) launched the most innovative service, a new product named credit card. Citibank’s mission in the Asia Pacific region was to be the most profitable provider of financial services to an increasingly affluent and middle-income market.
First of all we should bear in mind that entering into new markets means that Citibank has more opportunities to sell the same product to multiple clients or sell multiple products, such as Citibank’s core products, car loans, deposits and mortgage products, to the same customer. Also, in some countries there are very large population potential customers. In the sector of security, Citibank has quite high technology that can make users feel safe.
On the other hand, many people express doubts about this venture. There are many regulations designed to protect local banks and
References: http://www.bankersalmanac.com/addcon/infobank/bank-rankings.aspx www.citigroup.com http://www.geographic.org Vasileios Sekertzis