Question

Do you think CITI Bank was aware of the challenges of the internet during that time? Please discuss what could have been some of the possible risks and opportunities?

Answer 1

The development of Financial Technology (Fin Tech) in areas such as Mobile Banking, Internet Banking, Big data has changed the Banking and Financial Industry forcing traditional Banks to Upgrade and transform.Citi Bank positioned itself as the leader in Fin Tech Innovation. Citi Group Researchers predicted that due to Fin Tech the number of employees in Bank's would be reduced by 50% as a result of IT development. They further predicted that if Traditional Banks does'nt adapt to changing technology they would face extinction. Through it's Strategic Transformation Citi Bank not only upgraded itself but led such transformation in the whole Banking Industry. Digital Technology has crept into every aspect of our lives, offering unprecedented access to Information and services and also creating massive Cyber Security challenges and our lives vulnerable to Cyber Attacks. Citi Bank has increasingly migrated services onto digital Platforms for efficiency, speed and Customer convenience. Customers have round the clock access to account information virtually and can access electronically. However Citi Bank could'nt prevent the Cyber Attack in the year 2011. CitiBank was hacked and the financial data of more than 360000 customers was exposed. After a month Citibank declared that about $2.7 million were stolen from these accounts. I think Citibank was aware of the possible Cyber Security Challenges that they might face due to digitalization and they were working on it but as the data is accessible online there are threats to the security and the hackers take advantage of this.

Citi Bank has adapted its operating model to address the vulnerabilities of digital transition to add protection and thus, value for the Customers that can trust the integrity of their bank. The measures taken by the Citibank include:

Implementation of Common-sense measures to protect against "insider threats" by controlling information access, requiring "multiple level of approvals" monitoring transactions and training Staff to recognise and respond to threats.

Maintaining discipline and ensuring up-to-date  software through vigilance by IT and end-users.

Citibank also partnered with Microsoft to implement "next generation identity technology" for its employees and Users and emphasized innovation in Cyber Security.