SunTec

  Citigroup recently announced that it would be shutting down its consumer banking business in India and 12 other countries as part of an ongoing strategic review. 1  Under new CEO, Jane Fraser, the group plans to direct its investments and resources to businesses in four key regions where it anticipates higher returns and growth—Singapore, Hong Kong, the UAE, and London. “While the other 13 markets have excellent businesses, we don’t have the scale we need to compete,” said Fraser. Citigroup’s candid admission comes on the heels of Spanish bank BBVA’s announcement in November that it would be selling its stateside business to PNC Financial Services Group for $11.6 billion. 2  HSBC too is reportedly considering withdrawing from the US retail banking market as part of a wide-ranging overhaul of its global business. 3 One could argue that these exits were driven by the banks’ need to use their capital resources better. But they also reflect just how tough the retail playing field has be

  The business of banking is tougher now than ever before. On the one hand, they have to contend with changing customer expectations of hyper-personalized services, differentiated offerings, and greater innovation. As more millennials and Gen Z come into the formal banking system, the sector will have to change further to meet their demand for greater choice, flexibility, and control. On the other, they must contend with fintechs, challenger banks, and technology giants who have the digital prowess to offer personalized, innovative products and services that customers want. To make matters worse, there are disruptions in the macro-environment – ranging from geopolitical unrest to a pandemic that has complicated the banking landscape exponentially and has necessitated a range of urgent measures to meet the unexpected challenges. The question now is, how can banks gear up to thrive in such an environment? The answer, as most banks understand well, lies in building the strong technology f