Digital Banking Takes off Among Corporates

There’s at least one part of finance that Citigroup Inc. hopes doesn’t go back to normal: opening accounts.

With corporations around the world forced to shutter offices to stem the spread of the deadly coronavirus, Citigroup has seen those clients flock to its new technology offerings. The firm said on Wednesday that it had opened more than 1,000 corporate accounts digitally during the widespread lockdowns, a 300 percent increase from a year earlier.

“As physical interaction has become an issue and people are generally working from their respective residences, this particular capability became very handy,” Naveed Sultan, global head of the bank’s treasury and trade solutions business, said in an interview. “We’ve been at this for quite some time.”

The firm set out in recent years to reduce the time it takes corporations to open accounts from several weeks to two days. That has helped as the bank has seen an influx of new clients and even existing customers seeking to open accounts in new countries or regions around the world as they shift supply chains in response to the pandemic.

Citigroup has long leaned on its treasury division, which contributed 14 percent of firmwide revenue last year. Rivals have recently sought to mimic its success, with Goldman Sachs Group Inc. seeking to gain a greater foothold in the business.

Sultan said clients’ rapid adoption of digital tools means Citigroup employees will have more flexibility, too. His unit’s future could include a combination of working from home and from the office.

“At Citi, we have done very well adjusting to this new environment,” Sultan said. “We did not miss a beat.”

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