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Citigroup (C) Launches Relationship Tiers, Simplifies Banking

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Citigroup Inc. (C - Free Report) has simplified banking process by introducing Relationship Tiers. This along with retiring account packages has enabled enhancement of customer experience.

New customers can immediately avail benefits of these services, while C will initiate the conversion of its existing customers to its simplified banking processes in 2024.

Craig Vallorano, head of retail banking, stated, “These latest changes are designed to create a more seamless experience for our customers and make it easier for them to get personalized advice and access their finances.” 

To determine the Relationship Tier that suits a customer, Citigroup will automatically calculate the Combined Average Monthly Balance from their eligible deposit and investments accounts. As this Combined Average Monthly Balance grows, customers will be able to unlock Relationship Tiers. This will permit access to enhanced benefits and services from Citi Priority, Citigold or Citigold Private Client.

Benefits also include waiver of monthly service fees on checking and savings accounts, waived Citi fees at non-Citi ATMs and professional financial planning.

Further, Family Linking is a feature that Citigroup offers to make family financial management more convenient. By enrolling in Family Linking, customers can combine their average monthly balances with their eligible family members living in the same household.

This will help them unlock higher Relationship Tiers and enjoy their benefits faster. Moreover, customers can share benefits with their family members without having a joint deposit account.

Customers who are not in a Relationship Tier can avoid the payment of monthly service fees in their Citi Checking account by making enhanced direct deposits of $250 or more each month, in their Citi Savings account by having $500+ or more in average monthly balance or by owing both Citi Checking and Savings account.

We believe such initiatives will enhance customer satisfaction by increasing the product offerings and benefits provided to them.

Citigroup is already in the middle of a major business streamlining process.  In April 2021, it announced a significant strategic action to exit the consumer banking business in 13 markets. In January 2022, the company revealed plans to exit certain banking operations in Mexico.

Earlier this month, it completed the sale and migration of its Taiwan consumer business to DBS. Also, it has signed deals to divest consumer businesses in nine markets and completed sales in eight markets.

Citigroup’s shares have lost 18.6% over the past six months compared with the industry’s decline of 12.6%.

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C presently carries a Zacks Rank #3 (Hold). You cansee the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Restructuring Efforts by Other Banks

Comerica Incorporated (CMA - Free Report) launched Comerica Maximize, an interest-bearing checking account and competitive cash management solutions for qualifying small business and business banking customers. The new package enables them to earn interest income while growing and protecting their businesses with essential treasury services.

CMA’s Comerica Maximize has been uniquely designed to optimize customers’ funds and save time.

Bank of America (BAC - Free Report) is taking customer-centric credit card rewards to a new level with its latest announcement. The bank's Customized Cash Rewards credit card has been upgraded to offer even more ways for cardholders to earn cashback, catering to their evolving spending habits.

BAC’s credit card's standout feature is its flexibility in selecting cashback categories. With the recent expansion, cardholders can now earn a generous 3% cash back on select categories. The expansion focuses on two widely relevant areas: gas and online shopping.

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