Citibank to double Asia customer base in three years
Citibank to double Asia customer base in three 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.