Citi has developed new proposals that should optimize the retail banking business of this lender.

The announcement of the new solutions was made public by the financial institution last Wednesday, August 23, a few weeks after it became known about the sharp increase in Citi’s income received from the personal banking business.

The list of new proposals of the bank includes the so-called Relationship Levels. The financial institution compares this solution with incentive programs that are often used in the framework of interaction with customers by airlines and hotels. The lender clarified that its proposal provides that as the aggregate average monthly balance increases, the consumer can get access to additional services and benefits. In this case, clients are offered the cancellation of the monthly service fee for current accounts and applications, as well as professional planning of the most appropriate options for using the personal budget and the cancellation of fees when performing operations at ATMs of a financial institution.

For clients whose level of relationship with the lender is virtually zero, the bank has prepared a solution that provides an opportunity to avoid monthly service fees. In this case, consumers must make direct deposits of $250 or more to their current accounts or have an average monthly balance of $500 or more in a savings account. This solution also applies to those customers who simultaneously own current and savings accounts.

Craig Vallorano, head of retail banking at Citi, says that the bank’s new offerings are designed to create a more user-friendly consumer interface and simplify consulting and access to finance.

In July, the financial institution reported an 11% increase in the personal banking services business in the second quarter of 2023 in the United States. This indicator dynamics is explained by an increase in interest rates and an increase in card balances.

Jane Fraser, CEO of Citigroup, said that in a difficult macroeconomic situation, there are advantages of a diversified business model for the lender. She also noted that the business associated with cards issued by the bank demonstrates a double-digit growth rate as a result of active interaction in the space of relationships between financial institution and consumers.