Cash management poll 2008: Results
Cash management: Cash captains see their ship come in
Third-party provision finally takes off
Emerging markets: challenges remain
Financial institutions: uncertainty breeds competition
By maintaining an entrepreneurial culture – and seeing itself as a consolidator of an extremely fragmented industry rather than a goliath – Citi stays on its toes and this year has topped scores of categories in the Euromoney poll. Even its nearest rivals are happy to concede their admiration for what the bank can offer – and how it sells it. What’s Citi’s secret?
The first explanation, according to Francesco Vanni d’Archirafi, global head of treasury and trade solutions at Citi, is that the bank sees itself as "a technology company with a banking licence". In the technology-driven world of transaction banking, such a statement might not appear that unusual. But it is the attention to detail that Citi’s technology focus affords the bank that goes a long way to explaining its success among corporates and investors.
The second – and more unusual – reason for Citi’s success is the bank’s self-imposed inferiority complex. Rather than revelling in the undeniable fact that Citi is the pre-eminent bank in transaction services, it chooses to view itself as a minnow with a mission to grow. Vanni d’Archirafi says – without a hint of false modesty – that he "considers the business to be a multi-billion dollar start-up".
Vanni d’Archirafi rationalizes this view by noting that Citi’s treasury and trade solutions business does one basis point of the world’s GDP of $65 trillion. "As we intermediate flows, we could do two or three basis points – which means we could double or triple our business," he says. "We constantly need to innovate so we work with our best clients and get them to drive change."
Scale, of course, does have its benefits. It makes it cost-effective to consider infrastructure and technological solutions that many others banks would balk at. And it also gives the bank access to clients – and influence – that elude others. "Governments have recognized that we’re the best at what we do," explains Vanni d’Archirafi. "For example, the government of Ireland has given us a grant to innovate."
Citi’s third secret is perhaps more predictable but nonetheless essential: high-quality customer service. "Our strategy involves putting clients at the centre of everything we do, and innovating with them," says Vanni d’Archirafi. "Everything starts with our clients, which means we need to get to know their business as well as they do. The bottom line is that we win when they win."