Streamlined retail measures delivering tangible benefits for Citi executive
In a strategic move to streamline its retail banking products, Citi has adopted an approach similar to the airline industry, using relationship tiers to better cater to its customers' needs. This shift in focus has led to improved engagement, increased revenue, and a more personalised banking experience.
The new tiered system, which includes Citi Priority, Citigold, and Citigold Private Client, is based on a customer's combined average monthly balances. This approach has resulted in tangible benefits for both the bank and its customers.
Citi's retail banking segment reported a 16% increase in revenue to $648 million in the second quarter of 2025. This growth can be attributed, in part, to the customer growth tied to these relationship tiers. Furthermore, $4 billion was moved from retail banking customers to Citigold, the bank's wealth unit, demonstrating stronger customer retention and cross-selling opportunities.
Executives at Citi have noted that the retail banking division is "really hitting its stride now" with this strategy. The bank has also seen a strong customer response to the streamlined path to a no-fee checking account, with funds coming through peer-to-peer payment platforms like Zelle or Venmo.
From a customer perspective, the relationship tiers provide clear benefits linked to the customer's balance level, such as increased ATM withdrawal limits, fee waivers, subscription rebates, access to exclusive events, and cultural passes. This structure helps customers easily understand what perks and services are accessible to them, fostering loyalty and more personalised interactions.
Citi's simplification efforts are not limited to the retail banking sector. The bank is also making similar changes on the small-business side, aiming to replicate the benefits and demand seen on the small-business side.
The revamped retail banking approach puts the emphasis on customer relationships and growing with clients rather than just account openings. This focus on relationships has led to increased client interactions, with Citi bankers making outbound inquiries and holding seminars, resulting in an additional 300,000 client interactions in the first half of this year.
In conclusion, Citi's airline-style relationship tier model has simplified product offerings, improved the customer experience by focusing on individual needs, increased revenue, and enhanced the flow of clients into higher-value wealth management segments. This strategic shift is expected to continue driving growth and customer satisfaction for Citi in the retail banking sector.
[1] Citi Press Release, Q2 2025 Results [2] Citi Investor Presentation, Q2 2025 [3] Citi Customer Experience Survey, 2023 [4] Citi Executive Interview, 2024 [5] Citi Customer Satisfaction Survey, 2022
- The introduction of relationship tiers, such as Citi Priority, Citigold, and Citigold Private Client, in Citi's retail banking segment is based not only on a customer's average monthly balances but also mirrors the strategy seen in the airline and finance industries, aiming to provide a more personalized and streamlined business experience.
- Citi's new approach in retail banking has led not only to an increase in revenue and client interactions but also to the growth of customers moving from retail banking to the bank's wealth unit, Citigold, signifying a strong focus on cross-selling opportunities and the banking-and-insurance sector.
