Citibank To Double Asia Customer Base In 3 years<\/p>\n
Amit Prakash
\nDow Jones
\nSingapore<\/p>\n
Citibank, a unit of Citigroup, expects to double its consumer
\nbanking base in Asia, excluding China, to 20 million customers
\nover the next three years, said Frits Seegers, Citibank's Asia-
\nPacific head of consumer banking, on Thursday.<\/p>\n
The U.S. bank hopes to achieve this by selling more products
\nsuch as credit cards, mutual funds and installment loans in
\nheavily populated countries like South Korea, Indonesia, Thailand
\nand Malaysia, Seegers said in an interview on the sidelines of a
\nluncheon to mark Citigroup's 100 years in Asia.<\/p>\n
Seegers said the bank will focus separately on building its
\nbusiness in China, where it has a small but profitable presence.
\nWhile China's restrictions on issuance of yuan loans by foreign
\nbanks is a significant hurdle, the country's entry into the World
\nTrade Organization offers an opportunity to provide other banking
\nservices, he said.<\/p>\n
In Singapore, where it has had a retail banking license since
\n1999, Citibank has no immediate plans to open new branches but
\ndoes intend to announce shortly new electronic banking services,
\nSeegers said, declining to give details.<\/p>\n
The bank is also positioning itself to develop new products
\nthat can be put together and offered within 45 days, he added.<\/p>\n
Citibank operates three full-service consumer banking branches
\nincluding 22 automated teller machines in Singapore.<\/p>\n
The Monetary Authority of Singapore has awarded retail banking
\nlicenses to six foreign banks. Each of these banks are allowed to
\nhave a total 15 branches and off-premise ATM locations, of which
\nup to 10 can be branches.<\/p>\n
Seegers said Singapore's restrictions on the number of
\nbranches and ATMs prompted Citibank to focus on further
\ndeveloping its electronic banking channels.<\/p>\n
The executive advocated greater banking liberalization in
\nSingapore.<\/p>\n
\"Liberalization is good for the customers, and we would like
\nas open a field as possible,\" Seegers said.<\/p>\n
Seegers said he remains cautious on the economic recovery
\nprospects of Singapore and the rest of Asia as Japan's economy
\nremains sluggish and the upturn in the U.S. economy is still in
\nthe very early stages.<\/p>\n
\"In Asia, we will at best see a recovery either late in the
\nthird quarter or in the fourth quarter,\" he said.<\/p>\n
Until there are definite signs of sustained economic recovery
\nin the region, Citibank will continue to take a cautious approach
\ntoward loan issuance, Seegers said.<\/p>",
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