Citi focuses on its service sector during its transformation phase
In a strategic move, Citi aims to establish itself as the leading banking partner for institutions with cross-border needs. The services business, a key component of the bank, often serves as the primary entry point for middle market clients, with its treasury and trade solutions playing a pivotal role.
Despite a projected low- to mid-single-digit annual revenue growth over the next couple of years, representing a shift from the past few years, the services business continues to be a significant contributor to the bank's profit. CEO Jane Fraser, who refers to the services business as the "crown jewel," confirmed this, as it generated about half of the bank's profit in the first quarter.
Citi has been focusing on innovations in the treasury and trade solutions segment, fast-tracking its developments to stay competitive. This push for innovation has been necessitated by the increasing competition from fintechs in supply chain finance. The improvements made have enabled Citi to better compete in this dynamic market.
The services business, which helps approximately 19,000 clients worldwide manage and move money, has a market share of 0.5% among commercial clients. However, in the area of institutional clients, Citi's wallet share for treasury and trade solutions stands at 10%, above its peers, while its securities services market share is fourth, at 8.9%.
Citi is targeting opportunities to serve institutional clients looking to grow, particularly Asia-based customers seeking to expand their footprints in the U.S. and Latin America. The bank also aims to deepen wallet share in sectors such as healthcare, technology, and fintech.
The services business network has a footprint in 95 countries and moves close to $5 trillion for clients daily. Despite these impressive figures, the Federal Deposit Insurance Corp. is set to downgrade its rating on Citi's data management systems.
In a recent development, Citi has appointed Asghar Ali as the new head of the Corporate Banking Real Estate unit, effective immediately. This announcement was made on August 22, 2025.
The services business encompasses a range of offerings, including liquidity management services, payments, trade and working capital solutions, and securities services. As the bank continues its digital transformation, it plans to focus on multi-geography, multi-product clients in the next few years.
In a positive note, Khaliq, a senior executive at Citi, expects to take more share as interest rates flatten out. The services business, thus far, has shown no recommended reading articles specified in the paragraph, indicating a focus on delivering services directly to clients.
