Citigroup Takes Targeted Steps to Expand Its Offerings for Small and Medium-Sized Enterprises Worldwide. The US Bank, Traditionally Focused on Large Corporations, Aims to Significantly Expand Its Commercial Banking Business and Plans to Double Revenues in This Sector Over the Long Term. The Strategic Realignment Comes Amid Heightened Competition for the Same Customer Base and the Increasing Importance of Technology in Banking.

In the past two months, Citigroup has poached a top banker from Barclays to expand its business with UK companies with annual revenues between $10 million and $3 billion. Additionally, the institution has launched its first dedicated unit for small businesses in Japan, which is the sixth country where Citi has introduced such units within the last two years. Similar initiatives were previously implemented in Canada, Switzerland, Germany, France, and Ireland.

In 2023, Citigroup achieved approximately 3 billion USD in revenue from commercial banking clients, representing only a small portion of the total revenue of nearly 80 billion USD. Nevertheless, the bank sees significant potential to expand this business area. To support this, Citigroup has acquired a stake in the US fintech company Numerated, which uses artificial intelligence to analyze and capture data for business loans. This technology is also expected to help Citigroup better manage its own credit data.

We are able to offer our mid-sized corporate clients the same payment services that we also provide to very large companies worldwide," said Tasnim Ghiawadwala, Head of the Commercial Banking division at Citigroup. "This brings us additional revenue with only minimal additional investment.

Citi has appointed numerous new regional leaders for Commercial Banking in recent months, many of them in Asia, where the company sees great potential in serving previously neglected customers. This expansion is also seen as evidence that the bank's simplified structure, following a comprehensive reorganization that cost thousands of jobs, is better suited for cross-selling.

The focus on smaller business clients represents a strategic shift for Citi, which has traditionally targeted the largest corporations. This move comes at a time when regional banks are constrained in their lending due to higher interest rates and losses in commercial real estate financing.

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**An example of the challenges in cross-selling is evident with a Citi customer, the start-up Deel, which offers virtual HR and payroll services.**

While Citigroup is determined to expand its presence in commercial banking, it remains to be seen whether the bank can achieve its ambitious goals in an increasingly competitive market.