Citibank To Double Asia Customer Base In 3 years

Citibank To Double Asia Customer Base In 3 years

Amit Prakash Dow Jones Singapore

Citibank, a unit of Citigroup, expects to double its consumer banking base in Asia, excluding China, to 20 million customers over the next three years, said Frits Seegers, Citibank's Asia- Pacific head of consumer banking, on Thursday.

The U.S. bank hopes to achieve this by selling more products such as credit cards, mutual funds and installment loans in heavily populated countries like South Korea, Indonesia, Thailand and Malaysia, Seegers said in an interview on the sidelines of a luncheon to mark Citigroup's 100 years in Asia.

Seegers said the bank will focus separately on building its business in China, where it has a small but profitable presence. While China's restrictions on issuance of yuan loans by foreign banks is a significant hurdle, the country's entry into the World Trade Organization offers an opportunity to provide other banking services, he said.

In Singapore, where it has had a retail banking license since 1999, Citibank has no immediate plans to open new branches but does intend to announce shortly new electronic banking services, Seegers said, declining to give details.

The bank is also positioning itself to develop new products that can be put together and offered within 45 days, he added.

Citibank operates three full-service consumer banking branches including 22 automated teller machines in Singapore.

The Monetary Authority of Singapore has awarded retail banking licenses to six foreign banks. Each of these banks are allowed to have a total 15 branches and off-premise ATM locations, of which up to 10 can be branches.

Seegers said Singapore's restrictions on the number of branches and ATMs prompted Citibank to focus on further developing its electronic banking channels.

The executive advocated greater banking liberalization in Singapore.

"Liberalization is good for the customers, and we would like as open a field as possible," Seegers said.

Seegers said he remains cautious on the economic recovery prospects of Singapore and the rest of Asia as Japan's economy remains sluggish and the upturn in the U.S. economy is still in the very early stages.

"In Asia, we will at best see a recovery either late in the third quarter or in the fourth quarter," he said.

Until there are definite signs of sustained economic recovery in the region, Citibank will continue to take a cautious approach toward loan issuance, Seegers said.