Citiis a leading multinational bank with operations in more than 160countries. The organization holds more than 200 million accounts ofconsumers, governments, corporations, and institutions. It offersbanking services such as consumer banking, credit facilities,corporate and investment banking, transaction services, securitiesbrokerage, as well as wealth management. The bank’s managementreporting section entails two key business segments – Citicorp thatrepresents the bank’s core growth franchises, and Citi Holdings,which involves businesses and assets that are not vital to the futureof the bank. Citicorp’s focus is to provide the best in classbanking services and products to customers and ensuring supremeglobal network into the world’s emerging markets(CitigroupInc., 2016).

TheEffect of Globalization and Technology on

Globalizationhas transformed the custody and clearing landscapes of the bankingindustry. Besides, it has brought the need for innovation, growth,and risk taking in the security markets. Consequently, theglobalization of capital markets has changed the scope and role ofthe bank’s custodial services. Besides, globalization has led to anincrease of investment, both to and from mature and developingeconomies. For example, the emergence of developing markets as netcapital exporters has led to the decline of the United States’equity markets from almost half of the global equity market to justover one-third (Gelb, 2008).

Inresponse to globalization, Citi group has expanded the needs of itsclients from the original emerging markets into the prospectiverising markets that are yet to develop into major investment centers.For example, the group established its presence in seven moremarkets, which adds its total portfolio to 51 markets. It establishedits presence in Kazakhstan and Morocco in the year 2008. Besides, theinstitution also has plans to venture into Ukraine, Nigeria, andDubai. It has effectively integrated the services of its customersacross the various markets to ensure global consistency. Moreover,the organization has worked to ensure a robust and focused localcapability that enhances the smooth transfer of the client’seconomic benefits. The key challenges faced by the bank are themarket specific nature of custodial and clearing services (Gelb,2008).

TheEffects of Technology

Technologyhas transformed the way the banking industry interacts with thecustomers. Specifically, customers are no longer required to walkinto the bank to meet their business needs. Instead, there aredigital options such as ATM’s and online chats, internet bankingand mobile phones to meet clients’ needs at their convenience.Consequently, the banking sector has witnessed a growth ininvestments in financial technology in the past five years.Specifically, the investment in technology has increased from 1.8billion dollars in the year 2010 to 19 billion in the year 2015(Gelb, 2008). Citi group has responded to technological changes byreorganizing to accommodate the changes in customer needs. Forexample, the bank has worked towards the creation of asmartphone-centric business model to enhance the borrowing andinvesting services (Gelb, 2008).

IndustrialOrganization Model

Citibank is valued as a premium bank in the United States of America. Itsgood image is vital, as it will help the organization to earn morethan average returns as the U.S. banking sector is expected toexperience growth in the future. In particular, the prospectedincrease in the mortgage market is prone to earn the bank morerevenue. The venture of the bank into emerging markets serves as anopportunity for it to make higher returns due to the increase ininvestments and the flow of funds (Citi Global Citizenship Report,2014).


Theessential resource of the bank is its financial strength. Theorganization’s earnings increased by 1% to 3.93 billion UnitedStates dollars. According to directions by the Federal Reserve, theorganization should neither issue additional dividends nor repurchaseits shares to ensure more than average increase in its revenues. Theobservation was made after the group failed to pass the FederalReserve’s annual stress test. Consequently, the corporation wasforbidden to either increase its dividends or buy back its shares(Citi Global Citizenship Report, 2014).

TheInfluence of Citibank’s Vision to Success

CitiGroup aims at building trust to the clients by providing financialservices in a responsible manner that facilitates economic progress.Consequently, the mission guides the group’s activities insafeguarding the customer’s assets, lending money, provision ofaccess to money markets, and provision of capital to the customers.The organization has succeeded in assisting the clients to thrive infacing the world’s toughest challenges, as well as embracing theopportunities. The company’s mission contributes to the achievementof the organization`s key goal of improving the clients’ quality oflife. Besides, it contributes to the provision of advisory servicesregarding the best way to save for the future. The organizationensures the success of governments and institutions by providingfinancial support (Citi`s value proposition: A mission of enablinggrowth and progress, n.d).

Themission obliges the Citi group to act responsibly and aim at creatingthe best outcomes for clients. Besides, it enables the company tomanage risk and undertake decisive actions during hard times toensure maximum learning from negative events (Citi`s valueproposition: A mission of enabling growth and progress, n.d).

Besides,the group’s mission calls for the organization to adopt diversestrategies that pay focus on attracting talent, managementaccountability, workforce development, and the creation of afavorable working environment. The mission contributes to theorganization’s success in attracting and maintaining a competentworkforce to ensure the execution of daily activities (Citi`s valueproposition: A mission of enabling growth and progress, n.d).


Theemployees of the organization ensure success by demonstrating acommitment to integrity during their interactions with the customers,shareholders, and communities. The staff also depicts an open cultureof the organization to the global partners and serves a vital role inmaintaining an excellent relationship between the bank and itsinvestment partners (Citi Global Citizenship Report, 2014).

Thebank’s clients contribute to the success of the company byentrusting their money with the institution. Consequently, theycreate a goal for the bank to meet and surpass their expectations(Citi Global Citizenship Report, 2014).

Thebank’s suppliers ensure success by collaborating with theorganization to ensure the safeguarding of high ethical standardsthroughout the bank`s operations. Consequently, contractors play afundamental role in maintaining the organization’s reputation ofhigh integrity. Besides, the bank focuses on the creation ofresponsible supply chain processes to keep the relationship with itssuppliers (Citi Global Citizenship Report, 2014).

Theshareholders, investors, and socially responsible investors of thegroup contribute to the success of the organization by sharing theorganization`s vision through the provision of capital. Shareholdersbuy the bank’s shares, which provides the organization with thecapital it requires to expand its business (Citi Global CitizenshipReport, 2014).

Variousgovernments contribute to the success of the organization byproviding favorable rules and regulations to ensure smooth businessconduct. Besides, the local state administrations provide a desirablemarketplace for financial products through the maintenance of law andorder, as well as minimizing political risks (Citi Global CitizenshipReport, 2014).

Themedia contributes to the organization`s success by assisting in thedissemination of information. Consequently, the group can reach andattract more customers that are essential to the bank`s business.Other financial institutions contribute to the success of Citi groupby complying with the law and creating a favorable competitiveenvironment (Citi Global Citizenship Report, 2014).


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