Citi’s digital banking clients breach 7-M mark

MANILA, Philippines - Citi has broken the seven-million mark in its digital banking client base in its Asia operations, reaching 7.4 million as of end April this year.

In the global financial institution’s Philippine operations, 43 percent of its clients of over a million mostly high net worth and mass affluent individuals are now using electronic statements.

Citi head of consumer banking in Asia Pacific Jonathan Larsen said the financial giant’s aspiration is to be the world’s leading digital bank.

“In Asia, we are seeing strong pick up for our digital banking services. Technology and digitization are transforming the way we serve our clients.

Consumer preferences are changing and a generational shift in behavior is driving consumers to new digital channels,” Larsen added.

In the Philippines, Citi’s online banking platform has been winning back-to-back awards, for both corporate and consumer banking clients.

To date, users for its digital channels are registering double growth, with more than half of its client base accessing accounts digitally.

In 2013, it launched a new payment technology with Citi Visa payWave, allowing cardholders to simply wave their card next to an activated terminal to pay for small purchases. The payWave cards are now used in coffee shops, groceries and cinemas among others.

This year, Citi Philippines is poised to launch another exciting innovation in digital payments in partnership with Smart e-Money Inc.

That will result in a combining the purchasing power of its credit card and the mobile technology of cellular phones.

Citi Philippines chief executive officer Batara Sianturi said in a statement that they remain committed to bringing the future of banking to Filipino consumers.

“Whether it is in the space of digital payments, or redefining banking experience with a Smart and wired branch, our clients can continue to count on Citi to invest in the latest technology to anticipate their needs and make their banking experience both seamless and truly remarkable,” Sianturi stressed.

Registered users of Citibank Online have grown by more than 30 percent versus 2013, and logins have been steadily growing.  With Citibank Online, clients have a global view of all their account balances from over 12 countries in a single page.

Access to Global View of Accounts showed 67-percent growth year-on-year.

“With the mobile banking enhancements over the years for mobile and iPad devices, financial transactions done via the mobile banking have been steadily increasing, financial transactions done via the mobile banking have been steadily increasing, with more than 100- percent growth in 2013 versus previous year,” Citi officials added.

Citi has been investing heavily in technology to support the expansion of its consumer – banking business in the region.

At the end of 2013, the bank partnered with three Hong Kong institutions to launch a mobile banking wallet in Hong Kong.

New Citibank branches have also taken on a digital model.

These “smart-banking” branches include interactive touch panels, video-conferencing capabilities and full-service banking from devices such as iPhones and iPads.

These were launched first in Japan in 2009 and since have been rolled out across the world, including over 100 in Asia.

The bank has also been investing in new ATM technology and last year launched the next generation ATM in Southeast Asia, called Citibank Express.

The ATM offers all services available in a branch, and Philippines is one of three markets in the region to offer this groundbreaking technology.

Nearly five billion people are using mobile phones, according to Mobile Phone World. Internet World Stats said that there are over a billion people with internet access in Asia.

Mobile phone usage is thus two and a half times more than the number of bank accounts, with the differences especially pronounced in emerging markets.

This has important implications for a bank’s consumer franchise with the generational shift in how consumers want to access financial services.