Citigroup Will Market Digital Banking Services to Current Credit Cardholders
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Citi announced they would expand their iPhone app so customers could create bank accounts without ever visiting a branch. When this option officially launches this fall, the bank says it will primarily promote it to existing cardholders.
Some banks use high deposit rates as a means to attract customers. This is the amount of interest earned on bank deposits. Stephen Bird, Citi’s CEO of Global Consumer Banking, said at an investor conference that offering high interest rates attracts “hot money” depositors, not loyal customers. The bank wants to draw in customers that will maintain a long-term relationship with Citi, so they plan on targeting ones that already have a relationship with Citi.
Citi provides co-branded credit cards for many companies, including Home Depot, Costco and American Airlines. Those customers and others within the network will receive information about the digital banking services later this year. The new app will feature a “360 Financial View,” which allows users to track spending and available finances across all their accounts in one location.
The updated app will also have an expanded bill pay service, giving users a chance to see all the bills they pay with their cards, not just the ones paid with Citi cards. Users will be notified of bill increases when they occur so they can take swift action against unauthorized charges.