Today’s economic environment is quite challenging and ever dynamic, as a result poses a daunting challenge to the business persons and organizations to meet the resultant competitiveness and dynamism of the operation environment. In this regard, banking business is more challenging following the various economic challenges ranging from global economic crises to local financial crises like mortgage one.In this discussion Citigroup retail banking is at center stage as a case study.
Historically, Citigroup retail banking was formed over two hundred years ago through the combination of a number of different firms. But today, the Citigroup retail banking corporation comprises of Citibank which was founded in the year 1812, Banamex founded in 1884, Bank Handlowy founded in 1870, Salomon Brothers founded in 1910, Smith Barney founded in 1873. The principle components are the main parties to the Citigroup retail banking the group brands itself as “Citi”. Business wise, Citigroup maintains four main business lines, each with a local and global emphasis.
These four main business lines are: Consumer Banking, Corporate & Investment Banking, Wealth Management, and Alternative Investments. However, in the recent future the Citigroup has not been seen to do well in regard to those four main business line reflected by 80 percent decline in its net income. It is in this line of thought that this discussion points seek to examine and analyze the challenges that Citigroup retail banking face that threatens its existence in the banking business.