The FINANCIAL -- Citi on October 4 announced that it will invest more than US$1 billion in its Mexican business, historically known as Banco Nacional de México or Banamex.
The investments, which will be completed by 2020, will support the bank's commitment to deliver exceptional customer experiences and to provide expanded offerings to clients. As part of the investment program and as a further sign of Citi's commitment to Mexico, Banamex will be known as Citibanamex going forward. This initiative is in addition to the more than US$1.5 billion Citi committed to invest in Mexico in September 2014, according to Citi.
"Citibanamex has and always will be the Banco Nacional de México," said Michael Corbat, CEO of Citigroup. "These investments in Citibanamex reaffirm our commitment to Mexico and our confidence in its prospects. Our goal is nothing less than to create a state-of-the-art bank in Mexico, fully focused on delivering a richer, smarter, more intuitive experience to everyone who does business with us."
The investments will be directed toward five key areas:
1) Digital Banking: Consistent with Citi's "Mobile First" approach, Citibanamex's investments are designed to create the best virtual banking experience in Mexico. This effort will include improvements and new services and interfaces for Bancanet, MobileApp and Wallet.
2) Improvements to Technology Platforms: Citibanamex will increase its focus on cloud-based solutions; optimize its payments infrastructure; and improve process automation to make interactions between customers and the bank more intuitive and efficient, with enhanced quality and security standards.
3) Branches: Citibanamex will invest in its branch network and create digital branches that offer high-level, personalized advice and smart banking technology. The vast majority of the first 100 digital branches will be launched in Mexico City, Guadalajara and Monterrey. Additional improvements will be made to modernize Citibanamex's entire branch network.
4) ATMs: Citibanamex will add 2,500 new ATMs to its network across the country. 1,500 of these new ATMs will be capable of performing an expanded set of services, including check deposits and payments.
5) Targeted solutions for key customer segments: Citibanamex will improve its offerings for different customer segments, including:
Citibanamex Priority customers will have access to a new service model that includes exclusive areas in branches and call centers for customers whose level of financial sophistication requires specialized advice and financial products.
Small and Medium Business clients will be offered access to a specialized team with in-depth experience in this area and products and services tailored to their needs. By the end of 2016, there will be six branches that offer dedicated services.
Corporate clients with an international focus will have an enhanced ability to tap into Citi's global and regional capabilities to access the financial markets and to implement credit solutions, treasury and foreign exchange solutions.
In addition, Citibanamex will introduce a Financial Inclusion Area to address the unique needs of those who have not previously used traditional banking services.
Jane Fraser, CEO of Latin America for Citi, said, "Citibanamex will honor our rich history in the country while acknowledging that together we offer more talent, experience and ideas that will help enable economic growth and progress for Mexico."
Ernesto Torres Cantu, CEO of Citibanamex, said, "Citibanamex – the best of Mexico, the best of the world – represents the pride we feel for our past and the clarity about our future. The Banco Nacional de México has been and will remain the most committed financial institution to Mexico, its people and its businesses."
Citibanamex has nearly 1,500 branches, serves more than 20 million clients, and handles approximately 17.5 million transactions daily. It maintains more than 7,500 ATMs and 5.7 million credit card accounts.