Comprehensive SWOT Analysis of Citi – The Third-Largest Financial Service and Investment Banking Corporation

Updated on: Nov 24, 2021
SWOT Analysis of Citi Bank - Featured Image

Previously, we had covered the in-depth SWOT Analysis of HSBC– The World’s Largest Banking and Financial Services Organisations. Let us now do an absolute SWOT analysis of Citi.

Citi or Citigroup is a global and third-largest Financial service and Investment Banking corporation. It provides its consumers, corporations, government, and other institutions with an array of financial products and services. Also, Citi has approximately 22 per cent of the market share of foreign banks in India. 

The reason how this bank grew so big and the strategy behind the growth is it’s implementing some of the most successful marketing techniques using digital platforms as most of the customers are online nowadays. So if you are interested in learning the latest skills in digital marketing – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Before we go into the SWOT Analysis of Citi, let us know about Citi as a company.

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About Citi

SWOT Analysis of Citi - Image of City Bank of New York

          (Image of City Bank of New York, Source: CitiGroup)

Citigroup is an American-based multinational investment bank headquartered in New York. It came into existence with the merger of banking giant Citicorp and Financial conglomerate Travelers Group in 1998. 

Citi also owns Citicorp, which is the holding company for Citibank, as well as international subsidiaries. Citigroup or Citi is mainly in operations for management reporting which includes two business segments, Global Consumer Banking & Institutional Clients Group.

It’s one of the nine largest investment banks in the bulge bracket. It carries its business for Fortune 500 Companies. It has offices all over the globe, in regions including Asia Pacific, Europe, the Middle East & Africa, and Latin America.

 

Quick Stats on Citi
Founder Sanford Well, Samuel Osgood
Year Founded 1998
Origin New York
No. of Employees 210,000
Company Type Public
Market Cap $ 133.02 Billion (2021)
Annual Revenue $ 74.3 Billion (2020)
Net Income/ Profit $ 11 Billion (2020)

 

Current News About Citi

  • CitiGroup’s profit fell 36% in the second quarter ending June 30, 2023. The profit was weighed down by higher costs for layoffs and increased provisions for credit losses, primarily due to the struggling trading division on Wall Street.
  • Citi India transferred the ownership of its consumer banking business to Axis Bank Limited on 1st March 2023. Axis Bank completed its acquisition for INR.11,603 crores. The sale includes credit cards, retail banking, wealth management, and consumer loans, as well as the transfer of approximately 3200 Citi employees.

Buyer Persona

Buyer’s Persona

Name:

Astha Tiwari

Place:

Kathmandu

Age:

27 years

Profession:

Marketing Executive

Motivation

  • Global Presence
  • Digital Services
  • Sustainability Initiatives
  • Great Customer Service
  • Financial Education Program

Interest & Hobbies

  • Animals and Environment
  • Shopping
  • Reading
  • Travel and Explore
  • Foodie

Pain Points

  • Frequent numbers of scandals and frauds
  • High charges and costs.
  • Size and Complexity of Management and Operations

Social Media Presence

  • Facebook
  • Twitter
  • LinkedIn
  • Instagram
  • YouTube

SWOT Analysis of Citi

Talking about Citi’s business, let’s understand how this corporation can cater to different individuals using SWOT analysis. SWOT analysis of Citi helps us to understand companies through the lens of internal and external factors. Strength and weakness are based on internal factors whereas opportunities and threats rely on external factors of the bank.

SWOT Analysis of Citi - SWOT Infographics of Citi
Below is a step-by-step detailed guide to help you with the SWOT analysis of Citi.

Strengths of Citi

Strengths refer to those factors which help a company to have a slight edge over its competitors.

  • Brand Reputation: Citi has been in the business of banking for a large number of years. Also, with the variety of products and services it provides, it is established as a leader in the industry. This helps the corporation to gain a reputation and get recognized easily.
  • Automation: The company has a well-established IT system that helps ensure efficiency in its internal and external operations. Also, with the advancements in technology, it has automated various stages of production, leading to reducing its cost. This helps maintain the quality of products and services.
  • Product Portfolio: Citi’s portfolio includes a large range of product offerings in different categories, keeping in mind its customer base and target markets.
  • Social Media Presence: With the changing dynamics of business, Citi has been able to create a strong presence on social media having more than millions of followers on social platforms. Want to know how social media works as a strength for Citi? Then you must check out the benefits of social media marketing to get the answer to your query. 
  • Skilled Labour Force: Citi continues to hire employees with higher qualifications all over the globe. This helps the company to be ahead of the competition. Also, it has invested in the training and development of its employees.
  • The leading Issuer of Credit Cards Globally: One of the biggest roleplays that allowed Citi to establish itself as a leader is due to its facility of issuing credit cards.

Weaknesses of Citi

Weaknesses are the pain points that can affect the company, in the following ways.

  • Lower Employee Retention Rates: Citi has been facing higher employee turnover, which means many employees leave. The downfall of this is, that the company has to invest large sums of money into the training and development of its employees
  • Fluctuating Market Share: Citi’s product portfolio has some products that have a higher market share, while many have lower market shares. This creates a disparity in the portfolio, which makes it vulnerable to threats from competitors, new entrants, etc
  • Centralized Decision Making: Every decision taken in the corporation has to be centrally approved by the officials which leads to lesser efficiency in its operations and delays in work schedules.
  • Cash Flow Problems: Cash is necessary for running day-to-day operations and emergencies. But, the problem occurs when there is a lack of financial planning involving cash flows. This can lead to unplanned borrowing and increasing costs.
  • Lower Current Ratio: There occurs a problem in the current ratio where there are more liabilities than available assets. This leads to a mismatch in the financials of the company.

Opportunities for Citi

In the market, there also exist many opportunities through which a company can grow. Some of them are listed as.

  • Increasing Income: Increasing disposable income with the consumers leads to an increase in consumer spending. This can create demand for Citi’s products and services.
  • Demographics: The population is always growing and it always shows a positive rate in the coming future. It helps companies to create new target markets for their products and services.
  • Lower Interest Rates: Interest rates are getting lowered compared to previous years which allows considering expansion that involves finances with loans at a cheaper rate.
  • Increased Globalisation: Increasing globalization gives the option of entering new markets. It also reduces trade barriers and aids in increasing operations.
  • Technological Advancement: Technology has boosted the economy in many ways. It helps in automating the processes to reduce costs. It brings numerous benefits to many departments. One major benefit of technology is better data collection and market research.

Threats to Citi

Threats are the factors that usually no one has complete control over. Here we can only try to minimize them, including

  • New Entrants: There will always be newbies entering the market. Some may also come up with great solutions to existing problems, which lead to loss of the market share of existing companies.
  • Fluctuating Exchange Rates: When the business is operating in many nations, there is always a threat of fluctuating exchange rates. It impacts Citi, as it has sales internationally, while the suppliers are always local.
  • Increased Marketing Efforts: Due to the rise of digital marketing, there is an increasing number of promotional messages that are being sent by competitors. It clutters up the space, which leads to losing out on customers. You must also be well-versed with a variety of digital marketing skills to get ahead of the competition.
  • Political Instability: There are always changing regulations in different nations. It exposes changes in trade regulations and requires compliance by the companies.

Example of a Failed Campaign or Backlash from viewers:

  • One of Citi’s blunders was neglecting to inform minority mortgage applicants that they were eligible for lower interest rates if they had other accounts with the bank. To compensate consumers, it spent $24 million in 2019.
  • Regulators also discovered that the bank had failed to follow a federal regulation requiring lenders to guarantee that owners of properties exposed to floods have insurance if the premises were used as collateral for at least six years. Citi unintentionally sent $900 million to the incorrect people just before authorities responded in October, a humiliating blunder that put it in court.

Top 5 Competitors of Citi

  • JP Morgan Chase & Co.: It is headquartered in New York City and incorporated in Delaware, is an American global and universal bank and financial services corporation. As of 2023, it is the largest bank in the United States and the world’s largest bank by market capitalization.
  • Bank of America Corporation: It is a worldwide American investment bank and financial services holding firm headquartered in Charlotte, North Carolina, with investment banking and auxiliary headquarters in Manhattan. San Francisco, California, is where the bank was created. It is the second-largest bank in the United States, behind JPMorgan Chase, and the world’s second-largest bank by market value.
  • Wells Fargo & Co.: It is a multinational financial services firm headquartered in the United States with a major global presence. The corporation is present in 35 countries and services more than 70 million clients globally. According to the Financial Stability Board, it is a systemically significant financial institution, and it is one of the “Big Four Banks” in the United States, along with JPMorgan Chase, Bank of America, and Citigroup.
  • Goldman Sachs Group Inc: It is a worldwide investment bank and financial services firm based in New York City. Goldman Sachs was founded in 1869 and is located in Lower Manhattan, New York City. Goldman Sachs is the world’s second-biggest investment bank by revenue and ranks 55th on the Fortune 500 list of the top firms in the United States by total revenue.
  • Morgan Stanley: It is a worldwide investment bank and financial services firm located in Midtown Manhattan, New York City, at 1585 Broadway. The firm’s clientele includes organizations, governments, institutions, and people, and it has offices in 41 countries and over 75,000 workers. Morgan Stanley was rated 61st on the 2021 Fortune 500 ranking of the top firms in the United States by total revenue.
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To Conclude

As we saw during the entire analysis, Citi is a global name that doesn’t rely on one strength, weakness, or opportunity, or threat. But, it gets affected by so many different situations. Citi is always been a competitive player in the market and will continue to be.

Also, one point not to miss out on is that Citi is in line with its marketing effort. It has created a customer base for itself by tapping into the digital era and creating a social media presence on several platforms. If you are interested in learning digital marketing, don’t forget to check out IIDE’s 3-Month Advanced Digital Marketing Course.

We hope this blog on the SWOT Analysis of Citi has given you a good insight into the company’s strengths, weaknesses, opportunities, and threats. You can also read our comprehensive study on the SWOT Analysis of JP Morgan Chase. If you enjoy in-depth company research just like the SWOT analysis of Citi, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Citi in the comments section below.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

1 Comment

  1. Sahil Bodake

    This is a great analysis of Citi’s strengths, weaknesses, opportunities, and threats (SWOT analysis). It’s important for any company to understand its SWOT analysis to stay ahead of the competition. Citi has a lot of strengths to build on, such as its brand reputation and diverse product portfolio. However, it also faces some challenges, such as high employee turnover and cash flow problems. The article also highlights some interesting opportunities for Citi, such as increasing disposable income and growing demographics. It’s important for Citi to be aware of the threats it faces, such as new entrants and political instability.

    Reply

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