Citibank's Strategic Shift

In a significant shift towards digital banking and wealth management, Citibank has announced the closure of its last branch in Singapore. The Jurong East branch will officially close its doors on October 12, along with the Citigold Centre located at the CPF Jurong building, as the bank pivots to prioritize online services and cater to its affluent clientele.

Customer Services Transition

This strategic move comes in response to the rising trend of customers utilizing digital and self-service banking platforms. In an email sent to customers on September 25, the bank communicated the termination of services provided at the Jurong East location, including automated teller machines (ATMs) and cash deposit facilities. However, Citibank assures clients that these services will still be available at other branches across Singapore.

Wealth Management Focus

For transactions that require in-person assistance, such as opening joint accounts, encashing cheques, issuing cashier’s orders, and handling power of attorney matters, clients can visit one of Citibank's wealth centres. Currently, the bank operates three such centres in Singapore, which are part of its global strategy to concentrate on wealth management.

CEO's Insight

Brendan Carney, CEO of Citibank Singapore, previously disclosed plans to close branches where customers typically conduct straightforward transactions, indicating a trend that has seen the number of such branches decrease from 15 in 2019.

Global Wealth Hubs

As part of Citibank’s expansion into wealth management, the bank has positioned Singapore as one of its four primary global wealth hubs, alongside Hong Kong, the United Arab Emirates, and London. In December 2020, Citibank launched its flagship wealth hub at 268 Orchard Road, with additional facilities slated to open in Parkway Parade and Holland Village by early 2024.

Citigold Clientele Requirements

These wealth hubs are tailored for Citigold clients, who must maintain assets of at least $250,000, and for Citigold Private Client customers, who require investable assets of $1.5 million. Unlike traditional branches, these environments are designed for in-depth discussions between clients and relationship managers, ensuring access to specialized financial expertise.

Shift to Digital Banking

Notably, the majority of mundane banking activities are now conducted via the bank's app, with nearly 90% of customers engaging with the platform on a monthly basis. Citibank is a leading credit card issuer in the region, with its products constituting approximately 20% of card spending in Singapore.

Citibank's History and Future Plans

Having commenced operations in Singapore back in 1902, with its inaugural branch at 1 Prince Street, Citibank is one of the largest foreign banks in the city-state and a formidable player in Asia's wealth management sector. Looking ahead, in early 2023, the bank announced ambitious plans to triple its assets under management and significantly expand its wealth clientele by 2025, underscoring its commitment to growing in this lucrative market.

Conclusion

As banking practices evolve, this closure marks a notable turning point for both Citibank and its customers in Singapore. The shift from brick-and-mortar to digital wealth hubs reflects broader trends in the financial industry that prioritize client engagement and technological innovation.