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...Fraser told investors last month that the wealth management business “isn’t where it needs to be”....
...The standout business has been Citi’s transaction services division — which houses its vast payment processing and cash management network — though revenue growth there has been slowing this year....
...Other financial services companies are also experimenting with AI tools both internally and for clients....
...In 2019, Citi’s then-chief executive Michael Corbat named him as head of Citi’s large institutional client group, which also includes the bank’s transaction services business....
...The changes Fraser outlined last year are resulting in at least 20,000 job cuts at Citi, the third-largest US bank by assets....
...It was the smallest of Citi’s five divisions behind US personal banking, trading, services and wealth management....
...(c) 1 LOB (“Services”) = almost all of Citi’s market cap....
...“With the organisational simplification behind us and a good quarter under our belt, we have started this critical year on the right foot,” said Citi’s chief executive Jane Fraser....
...Any rebound for Citi next year starts in its services unit, offering working capital and payment facilities to its multinational corporate clients....
...Full-service banks such as JPMorgan are built for scale — ie getting as many deals through the door as possible — so there’s only so much impact any one individual can make. That’s intentional....
...This would split the Institutional Clients Group into three business segments: investment and corporate banking, global markets and transaction services. The units would report directly to Fraser....
...The four other units — wealth management, transaction services, markets and its US consumer bank — will be managed by their current leaders....
...Fraser’s restructuring aims to streamline operations and boost the bank’s returns, which have trailed rivals....
...In its early days Citigroup styled itself as a “financial supermarket”, a one-stop shop for all kinds of banking services around the world. But that plan has backfired in recent years....
...It comes in the middle of a restructuring of the bank under chief executive Jane Fraser, who is also exiting many of the bank’s retail operations overseas....
...Fraser is trying to rewrite that script....
...At Citi, chief executive Jane Fraser has continued to reiterate the bank’s commitment to its Chinese operations....
...Citi’s transaction services division also reported one of its best quarters in years....
...Of course, there is customer service and access. But even those face tests....
...For Citi, part of the appeal of the new licence is that it would enable it to pitch its services as an onshore underwriter and a full-service bank to clients of its corporate and commercial bank on the mainland...
...Overall, Citi’s chief executive Jane Fraser told analysts that she expected inflation to continue to fall and the economic outlook to remain positive....
...While the stand-off apparently cost Frasers a cool €50mn as it transferred the position to other brokers, the incident clearly hasn’t cooled the company’s appetite for stakebuilding....
...Financial services was actually kind of late to the party because there were rules against particular types of mergers....
...worked on the Fraser Institute’s index....
...Last year, Citi launched Wall Street’s first financial institutions advisory group focused on minority-owned banks, which offers them services such as bond underwriting and mergers and acquisitions advice...
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