Citigroup intends to close its retail banking business in the United Kingdom, moving its attention to its richest clients.
According to reports published Wednesday (Sept. 21), the banking behemoth stated it was urging its richer customers to begin utilising its private banking services as it cuts down its retail division. Customers who do not match the eligibility requirements for this new service will have their accounts cancelled.
Citi said in a statement, “Citi has initiated the process of jointly discussing with employees of its UK retail bank in further detail about the idea.” “No final decision may be made until the procedure is completed.”
The bank allegedly claimed that the “vast majority of clients will not be affected until 2023.” Citi operates one location in the United Kingdom, which is located in Canary Wharf in London.
Citi announced changes to its business structure in January as part of a wider effort to transition away from global retail banking. Citi announced the closure of its Mexican retail banking arm, Citibanamex, and the sale of consumer banks in Indonesia, Malaysia, Thailand, and Vietnam to Singapore’s United Overseas Bank.
J.P. Morgan announced earlier this month intentions to create a team of retail bankers in Germany as it prepared to develop its worldwide consumer business. The bank’s first move beyond the United States occurred last year, when it launched a digital-only retail service in the United Kingdom.
Executives have said that they wish to grow into other nations. Before deciding where to establish comparable operations, J.P. Morgan will assess the performance of the rollout.
