Citigroup’s EMEA consumer businesses share best practices to great effect. Recent UK head Nandan Mer talks to Michael Imeson.
Success in any walk of life is hard to replicate, but for large organisations, it is made easier by being able to share experiences and best practices between business units and countries. At Citigroup they call it “success transfer” and it’s a concept that is being put to good use by Nandan Mer, regional head of sales and distribution, Europe, Middle East and Africa (EMEA), global consumer group, who was recently promoted from head of the bank’s UK consumer group.
“If there is one core strength I would pick for Citigroup, it is success transfer,” says Mr Mer. “We are good at sharing knowledge across various markets.”
The UK consumer businesses – retail banking, cards, and consumer finance – have a lot to offer other parts of the group in the EMEA region, in terms of processes such as data mining capability and appropriate pricing. “The UK has sophisticated models that constantly evaluate customers from a risk perspective so we can offer ‘dynamic pricing’,” he says. The UK operations have also learned from the bank’s successes in Germany, Spain and the US.
Success transfer also works from emerging to developed markets. For example, Mr Mer was country business manager for Citi’s consumer business in Russia from its launch in 2002 until he moved to Britain in 2005. During his time there, he decided that the Russian branches should be open eight hours a day, seven days a week. The strategy was so successful that he has applied it to Britain. From July this year, opening times at four of Citi’s five UK retail banking branches were extended to 12 hours a day, six days a week.
Concierge service
Another transfer into the UK is the Citi Ultima credit card and concierge service, whereby for an annual £500 fee the bank will extend up to £50,000 credit and even book lunches, taxis and golf courses for you. “Ultima started in Asia, got to Russia last year, and was launched in Germany, the UAE and the UK this year,” says Mr Mer.
As an Indian working in the UK for a US bank, who previously worked for Citi in Russia and Israel, Mr Mer has the international outlook that the company expects from its most senior executives. He reports to two bosses: Michael Kirkwood, head of Citi in the UK, and George Awad, chief executive officer for City’s EMEA consumer division. The latter joined at the end of August from GE.
Will George Awad’s appointment presage a change of strategy in EMEA in general, or the UK in particular? “My sense is that we will continue on the strategy we have already developed,” says Mr Mer. “The fundamentals remain the same.” Citi will face a reinvigorated competitor in the shape of Barclays, he says, but “competition is always a great thing”.
The UK is Citi’s second largest EMEA consumer market after Germany, serving more than one million customers through Citibank (transaction banking, loans, insurance and investments), credit cards and CitiFinancial (consumer finance loans and mortgages). It delivers this through its five Citibank and 100 CitiFinancial branches, telephone and online banking.
There are several elements to its consumer strategy, all of which revolve around “customer advocacy”, says Mr Mer.
First, it caters for the internationally oriented customer. “Our emphasis is on meeting customers’ international transaction banking and savings needs with an integrated product that helps them manage their money across the world. So a multi-currency offering is important. We offer a mix of domestic and offshore solutions.”
Relationship manager
Second, every customer gets a relationship manager. This is a recent initiative, put into effect seven months ago. “The main UK banks offer relationship management to premium banking customers, but we have mass-marketed it to provide personalised banking for everyone.”
Third is the extended branch hours. And fourth is “robust pricing” – for example, “we have one of the highest yields on savings, higher than ING Direct, and there are no restrictions on withdrawals”, says Mr Mer.
Across Europe, Citi’s consumer group has 895 branches and 14.4 million banking, card and consumer finance accounts, making a substantial operation when the Middle East and Africa are included. But Citi is spread thinly so will never be one of the biggest retail finance players in the UK or other major European markets. However, it operates to high standards, making it a force to be reckoned with in the international premium customer sector.
