1. EXECUTIVE SUMMARY
The opening of Citibank Express Service in the departure side of the airports will provide great convenience for Citibank customers (especially business customers and holiday makers). Citibank Express Service which features new product promotions and an online banking facility will offer high accessibility and convenience to Citibank customers when they are at the airports waiting to board their flights. Citibank Express Service will serve better existing customers, attract new ones, and maintain leadership in the affluent segment. 2. CURRENT MARKET SITUATION
Leading international financial groups have been seriously affected by the global credit squeeze. Citigroup, the world's biggest bank, announced its second quarterly loss this year by more than $15bn (£7.5bn) of write downs and increased provisions against bad customer loans (Citibank). Analysts have suggested that Citi could cut as many as 2000 of the 12,000 people it employs in London. The London-based operations alone made losses of just over $1bn in the first quarter after $1.9bn of write downs (FT). Traders at Citigroup's investment banking arm racked up daily losses of more than $100m (£50.8m) on 15 separate days last year, the bank's annual report reveals. The disclosure has added to concerns about Citigroup, one of the banks worst hit by the subprime crisis, and raised questions about its risk management systems. But Citigroup said the data 'highlight the volatility that existed in the markets in 2007' (FT).
BANKS: MARKET DESCRIPTION
Most banks have been celebrating record results for 2007. Italy's Unicredit, the biggest bank in central and eastern Europe, reported a 9 per cent increase in net profits to nearly €6bn ($9.4bn).
MORTGAGES SITUATION BOTH IN UK & US
The phenomenon of "negative equity" is one with which the UK is familiar: tens of thousands of British homeowners, struggling to meet their monthly repayments during the early 1990s. Thus fears exist that the emergence of the phenomenon in the US may precede its UK return (FT). According to the Halifax, one of Britain's biggest mortgage lenders, affordability is at its weakest since records began 25 years ago. At the heart of concerns on both sides of the Atlantic is the increased proportion of loans that until last year were made available to those who, because of poor credit or low incomes, would not have been able to buy a home before.
ORGANISATIONAL CHANGES IN CITIBANK
Citigroup has long grappled with the challenges of managing multiple businesses in many countries around the world. Ever since Citibank adopted and subsequently abandoned, its famous "matrix" management structure in the 1970s the bank's executives have debated how to balance cross-border product expertise with local knowledge. Now Citigroup is once again emphasising the regional. In a wide-ranging shake-up devised by Vikram Pandit, its new chief executive, the bank dividing its operations outside the US into four geographical units, each with its own chief executive. At the same time, Citigroup has split its consumer operations into two divisions, a consumer banking unit and a new division that will bring together all its credit card operations around the world. 3. DISTRIBUTION REVIEW Initially Citi bank express branch will be launched at the famous International Airport like Mumbai (Chatrapati Shivaji Terminus Airport), London (Heathrow Airport), Hong Kong Airport and New York (JFK Airport). Branches will be located at the departure side of all airports as it will help the bank to get the maximum visibility of branch towards customers. Website name will be appearing on the backside of the air ticket of customers thus tie up with few air line industries.
Demand for banking services is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on marketing skills, efficient operations, and good risk...
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