Tomorrow, Citigroup (NYSE: C) will be opening a new, high-tech branch in New York City on Thursday, in an effort to woo more business from wealthy, urban customers.
Although Citigroup is the third largest bank in the United States, their retail branch network is relatively small comparatively. While they have roughly 1000 US bank branches, rival Bank of America (NYSE: BAC) has nearly six times as many. Citigroup, which has a much stronger retail presence in Asia, is trying to attract more U.S. consumer business by importing its “smart bank” branch style from overseas. The New York branch offers free wireless connections and screens streaming markets information and financial and general news. Customers will be able to reach customer service representatives 24 hours a day through video chat, and can browse information about Citigroup products on interactive video screens. Manuel Medina-Mora, Citigroup’s chief executive officer of consumer banking for the Americas, said in a press release that the new branch “reflects our strategy to invest in retail banking,” especially in new technology and “key” urban markets.
Citigroup’s new branch is located in New York City’s Union Square. The bank said it plans to open similar “smart” branches in other U.S. cities. As competition for retail customers is heating up, differentiation has become every more critical. While Wells Fargo (NYSE: WFC) is circling the wagons rebranding the Wachovia branches, the competition in the NY market will be more fierce than ever. Perhaps a technological edge can help give Citigroup the edge they sorely need.
