Banking behemoth Citigroup (C) has embarked on a reorganization to ‘harmonize’ its global consumer banking businesses. As part of the restructuring and management reshuffle, global cards and consumer services head Jud Linville will be stepping down, ending an eight-year stint with the bank. Currently, the card business is being merged with the wealth and retail units in the US.
Pursuant to the reshuffle, Linville’s responsibilities will be taken over by global retail banking head David Chubak. The consumer banking division in the US will now be led by Anand Selva, a Citi veteran who is currently serving as head of consumer banking in Asia. However, Both Chubak and Selva will retain their existing responsibilities.
Currently, the card business is being merged with the wealth and retail units in the US
Selva’s elevation and the plan to incorporate the advanced digital consumer banking tools – developed in Asia – into the US operations complement the outlook provided by Citi last year, projecting global consumer banking businesses as the primary contributor to profit until 2020.
Citi CEO Stephen Bird in a statement said the management changes would synchronize US operations with the more efficient model followed in Asia and Mexico, which generates cross-product synergies while facilitating effective partnerships and quick decision-making.
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Of late, the bank has been following the strategy of testing its digital products and new consumer offerings first in Asia, before implementing them in the other markets including the US.
Linville, a former American Express executive, played a pivotal role in building Citi’s cards portfolio. He is leaving the bank at a time when the cards division is going through a sticky patch, marked by lackluster revenue performance and failure to meet targets.
A high-value deal with Costco (COST) for switching customer cards to visa from Amex, signed a few years ago, and the botched implementation of the system proved to be a significant drag on the card business, which was already facing stiff competition from other leading players like JPMorgan Chase & Co.
2017 was a year of modest revival for City shares, more than a decade after the recession, but they started losing the momentum at the beginning of this year. The stock dropped more than 1% during Monday’s regular trading session.
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