Sergio Zanatti: Banking from Peru to the Philippines

It’s like a marriage,” says Sergio Zanatti, Citibank Philippines consumer business manager. He is describing his 15-year stint with the bank  his first and only job right after graduate school at Purdue University in India as a Fulbright scholar.

Zanatti started in Peru where he held various senior executive positions in Citi’s consumer and cards business, then he was appointed country business manager of the Dominican Republic, and then moved to Argentina as COO and LATAM South Region Strategic Planning head until 2006.

Then he literally moved across the globe  to South Korea  which is not as common as you might think as corporate heads are usually posted within a particular region  like Asia or Europe or Latin America  but when the opportunity came, Zanatti wanted to be in Korea where he would later oversee the implementation of the integration project between Citibank Korea and KorAm Bank as executive vice president.

Why did he want to be in Asia? “It was a family decision with my wife (Corina Trovarelli). My kids were young enough (then five and seven years old) to be easy to move. We all wanted to have the experience of living in Asia. Our kids belong to that category called ‘third-culture kids,’ which refers to children that have always lived overseas and moving from one place to another. From the company’s point of view, Asia is a key priority, we are very focused on this market as a growing region.”

Then this year, in January, he packed his family again and moved to the Philippines, his fifth country for Citibank.

From a very high-tech country (Korea is the acknowledged world leader in Internet connectivity and speed) to one whose mass railway transit still relies on magnetic cards and until three years ago on tokens. But Zanatti says we will catch up faster than anyone thinks.

He sees technology as playing a big part in the local cards business  and says Citibank is likely to lead the way in innovation as it did with Citi Mobile, launched a few years ago, which lets you charge for food delivery or pay for bills using your phone as a payment channel.

“I think it’s just a matter of time. Look at how many smartphones were available in the Philippines, say, less than five years ago, and look at the situation now. The Philippines has a user behavior, people feel comfortable using their mobile phones as a way to communicate. It may not be as fast as Korea or Japan but it will come. We continue to work very hard in bringing new things to the card business. It’s evolving now toward mobile capabilities. The technology is available, what needs to happen is customer education.”

Another key indication that Zanatti saw for himself was when Citi launched his first “baby” in the Philippines at the end of July: the new Cebu Pacific Citibank card. “We are selling a significant amount of accounts online, which tells us that this product attracts Internet-oriented customers, the type of people who do their travel booking online.” 

In just two months, Citi has issued over 20,000 Cebu Pac cards. “There is a lot of equity built on the whole Cebu Pacific program. It’s a record and it’s one of our biggest successes. Customers reacted immediately, we were selling accounts more than we ever anticipated. The value proposition of Cebu Pacific is a very unique one. When you apply and get approved by Oct. 15, you get a one-way ticket free to any Cebu Pacific destination, whether local or international. It also provides our customers previews and preferential access to Cebu Pacific’s seat sale, which is usually announced online, and it’s first-come, first-served. These are limited seats. But if you’re a Cebu Pacific Citibank cardholder, you will be notified two hours ahead of time through SMS or e-mail depending on how you want to be contacted.”

As anyone who has ever tried to book a seat online during a Cebu Pac sale, those two hours are a big advantage! Cardholders also earn never-expiring CEB points to redeem? vouchers and book online without restrictions?on fares and destinations 

And, yes, Zanatti has flown on Cebu Pac  to Boracay with his family (including his family who flew from Peru) last Easter.

In this very competitive market, Zanatti says Citi’s strategy for staying on top is building on its strengths. “We build on these pillars  our globality, our network, our infrastructure. Having the ability to reach 12 markets in Asia and share services that give consumers access and privileges is a competitive advantage that’s very hard to replicate. The relationships and partnerships that we have built across the world, we capitalize always on these. We are very focused on the credit card on the consumer side, which is a major driver in the business world. We have significant presence in Asia and are the No. 1 or No. 2 player in 80 percent of the markets. Countries like the Philippines, Thailand and Indonesia, we are a 20-plus percent market share player. Asia is a key region and credit card is a key pillar in what we do.”

Asia is also responsible for the Premier Miles card  a “baby” of Citibank Singapore a few years ago  which has been rolled out all over the world. The card lets you decide where to put your reward miles from among six airline alliances, giving cardholders access to over 70 airlines. 

“Premier Miles completely redefined the mileage card. The problem with frequent flyer programs is that you start flying in different airlines and you get miles scattered and at the end they are small amounts that you cannot redeem the flight you want. With Premier Miles, you hold your miles until have enough to put them in one airline.”

Citibank, according to Zanatti, is also the preferred wealth management partner. Its Citigold is a very strong leader in the Philippines and Asia. But now, Citi is also looking at the market that wants to invest but doesn’t have the kind of money that would qualify them for Citigold.

 “We understand the value of planning and securing one’s financial future  and the urgency  and we show this commitment by launching relevant products and services, including Regular Savings Plan (RSP). We launched this late last year by providing clients the option to set aside a fixed amount to build up their savings.  We invited clients to designate a destination account, which could be a savings or checking account, and based on their instructions, we arranged for automatic funds transfer monthly.  Many appreciated how we helped them meet a savings goal. Recently, we launched the investment option for individuals who want to grow their wealth. Clients can enroll to invest in specific investment funds and indicate how much they are willing to set aside monthly.  Citi will arrange for automatic fund transfers to the client’s investment fund of choice for a pre-determined period.  Investments will be coursed or booked though Citicorp Financial Services and Insurance Brokerage Philippines Inc.”

Zanatti says what makes RSP even more attractive for Investment Funds is that it offers the benefits of cost-averaging strategy.  “You can invest a fixed amount at regular intervals and enter the market not once but at different times, riding highs and lows and potentially earning better yields.  Cost-averaging is recognized as one of the most successful strategies to overcome the effects of market fluctuations, particularly for volatile markets.  RSP for investment funds will allow clients to harness this strategy to their advantage and possibly enhance their returns compared to investing in lump sum.  A programmed monthly investment plan like this also neutralizes the danger of emotional investing that may otherwise affect your investment decisions adversely.”

Clients choose from several investment funds through CFSI, depending on their risk appetite.  Choices include peso and US dollar bond funds, peso and US dollar income funds, Philippine equity funds and Asia Pacific equity funds. 

RSP is available to clients of both Citibank and Citibank Savings.