Citigroup aims to double the number of customers

Citigroup Inc. aims to double the number of customers in its consumer banking unit in Hong Kong, as HSBC Holdings Plc challenges and Standard Chartered Plc to add branches, ATMs and online services.

The Bank of New York, has two million consumer banking customers in the city in three to five years, over a million now, Jonathan Larsen, director of Citigroup's consumer banking for the Asia-Pacific said in an interview from 09 December.

"Hong Kong is an attractive market," said Larsen. "We believe we deserve a bigger slice of that market and we believe we can achieve."

Citigroup stepped up expansion in the city of 7 million people this year, nearly doubling its number of branches to 43 and adding more than 60 ATMs. The company is the signature of more than 10,000 new customers in retail banking than a month in Hong Kong, a fivefold increase from the pace at the beginning of the year, according to spokesman James Griffiths.

HSBC, based in London and founded in Hong Kong in 1865, is the largest bank in the city with about 100 branches and more than 4 million customers in its personal financial services unit. Standard Chartered, the British bank that gets most of its profit in Asia, has about 80 branches and operates over 200 ATMs.

Citigroup unit, oversees consumer banking retail banking, wealth management for individuals with up to 10 million dollars of assets, credit cards and small and medium enterprises. HSBC includes retail banking, credit cards, insurance, pension savings and investments in their personal financial services operations.

Asia Plans

Hong Kong, where the economy grew 6.8 percent in the third quarter, is part of Citigroup's initiative to expand in Asia. The U.S. bank plans to increase its branch network in the region to more than 1,000 in the next three to four years from 710 now, said Larsen. Citigroup aims to triple its number of outlets in China to about 100 in three years.

Standard Chartered, said last week that increased competition among banks is driving higher staff costs, the forecast of expenditure will increase faster than revenue this year.

In Hong Kong, Citigroup is undermining the dominant position of HSBC, expanding the range of outlets where customers can access banking services. The bank said in October it was agreed to install ATMs in 7-Eleven stores in the city.

"We will not stop," said Larsen. "We will continue adding ATMs. We will keep looking for partners that can help us add value. We will continue to make sure a player is very visible."