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Citi Handlowy Builds Smart Banking Ecosystem
- Transformation of the Consumer Banking distribution model – the bank builds a Smart Banking Ecosystem
- Implementation of the effective bank strategy
- Employment restructuring – a comprehensive outplacement program and alternative jobs within other Citigroup entities in Poland
The Bank announces the transformation of its Consumer Banking distribution model and builds a Smart Banking Ecosystem. That’s a “bank of the future” concept where the Bank follows the dynamically changing needs of its customers and creates a network of mobile and internet solutions as well as modern Smart touch points. The Bank has approved the directions of the transformation, according to which 25 Smart outlets will be operating in the Polish market by the end of 2014. These outlets will be located in markets that are of strategic importance. At the same time it announced that it will exit 19 locations in non-strategic markets this year. As a result of the change in the distribution model and in order to boost operational efficiency it has also decided to change its operating model, resulting in the elimination of 792 jobs. At the same time at least 1,000 new jobs will be created in other Citigroup entities in Poland within the next 12 months.
Citi Handlowy developed the Smart banking ecosystem on the basis of an in-depth analysis and the experience from last year when the Bank exited 65 locations and retained over 90% of the customers from those markets, it decided to create an innovative “bank of the future” concept. That's a response to the changing needs and preferences of the customers. Accordingly the bank will shift its focus from traditional banking based on the traditional branch network to modern smart touch points, located in identified hot spots and it will provide state-of-the-art technologies allowing convenient contact with the bank with the use of mobile and internet solutions. Today almost 90% of transactions are conducted through Citibank Online and CitiMobile platforms and only 2% in branches (data: June 2013). A pilot Smart outlet has been operating for over a month now in Galeria Katowicka and it is the first outlet of its kind in Poland. Today the Bank has approved the directions of the transformation, according to which 25 Smart outlets are to open in the Polish market by the end of 2014. All of them will be located in strategic markets. At the same time the Bank announced that it will exit 19 locations in non-strategic cities. Customers in these smaller municipalities will be served through remote channels – CitiPhone, Citibank Online and Citi Mobile as well as by a centralized sales unit.
In connection with the change in the distribution model and in order to boost efficiency in the changing market conditions it has made a decision to optimize its operating model and change its organizational structure, which will result in the elimination of no more than 792 jobs. The Bank will take every effort to reduce to the minimum the effect on its employees. A large share of the affected employees should find employment within Citigroup entities in Poland. Within the next 12 months at least 1,000 new jobs will be created within Citi entities in Poland. The Bank is also preparing a comprehensive outplacement program for affected employees. Last year, during the previous restructuring, as many as 98% of the affected employees took part in a similar program and 68% of them found new jobs yet in the course of the outplacement program.
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