An Examination of Citibank's E-Business Strategy for Global Corporate Banking

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  • Topic: Bank, Online banking, Bank holding company
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  • Published : April 2, 2012
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e-Business Unit 6 Mid Term Assignment
(An Examination of Citibank's E-Business Strategy for Global Corporate Banking) A Paper Presented in Partial Fulfillment
Of the Requirements of
[Class #637 - MBA 57613 - e-Business]
February, 2012

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DECLARATION OF ORIGINALITY OF WORK:
I affirm that the attached work is entirely my own, except where the words or ideas of other writers are specifically acknowledged according to accepted citation conventions. This assignment has not been submitted for any other course at Robert Kennedy College or any other institution. I have revised, edited and proofread this paper. Signed the student, 26/02/2012

CERTIFICATION OF AUTHORSHIP:
I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and fully disclosed in this paper (examination). I have also cited any sources (footnotes or endnotes) from which I used data, ideas, theories, or words, whether quotes directly or paraphrased. I further acknowledge that this paper has been prepared by myself specifically for this course. Signed the student, 26/02/2012

Word count: 2,105 (excluding bibliography and figures)
 

Introduction
Citibank, N.A., founded in 1812 as the City Bank of New York is a global banking giant currently the third largest bank in the United States (FFIEC NIC 2011). With the rise of the internet and in response to the rapid growth of e-Commerce and increased competition catalyzed by the dotcom boom, Citibank embarked on a number of initiatives to allow the bank to compete in this burgeoning arena. This paper is a brief analysis of Citibank's E-Business Strategy for Global Corporate Banking as per the case study provided. The Impacts of the Internet in Corporate Banking

Citibank which by all accounts is an established and successful bank recognized the growing influence that the internet was exerting in the sphere of Corporate Banking as alluded to in the case study. One of the greatest impacts of the internet in Corporate Banking relates is in the area of revenue maximization and cost minimization. The technology of the internet allows a bank’s clients to interact with their account information online. Services such as balance and statement requests, transfers and bill payments can be offered online as well as electronic instructions. This can lessen the reliance on physical bank branches to deliver service. The introduction of Internet Banking thereby has the ability to reduce costs associated with the establishment, running and maintenance of traditional banking infrastructure, staff costs, stationary etc. (DeYoung 2001). Allowing clients to perform their transactions online means that banking hours can be extended as they are no longer necessarily linked to traditional office hours and human resource considerations. This means that clients can perform banking transactions at times that are convenient to them. Additional convenience is also provided as a result of the fact that service is no longer limited to a particular geographic location. Since clients can log in from anywhere they are no longer required to drive out of their way and possibly even wait in queues to access services (DeYoung 2001). Furthermore the money saved as a result of a reduced reliance on physical infrastructure can be passed on to clients as an additional incentive in the form of more attractive interest rates and lower service fees and charges. All of this can serve to increase client loyalty and engagement as well as allowing banks a more intimate view of their client’s needs and profile, which can be used in conjunction with customer relationship management and business intelligence tools to offer a distinct strategic advantage. The internet also allows centralization of processing functions from geographically dispersed locations allowing for economies of scale and also allowing the outsourcing of certain...
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