Multymeter.com-Business & Finance: Citibank Indonesia officially closed its consumer banking business on 18 November 2023. This is part of Citigroup’s global strategy to exit the consumer banking business in 13 countries, including Indonesia.
Citibank has operated in Indonesia since 1968. In 2022, Citibank Indonesia has total assets of IDR 21.3 trillion, with more than 2 million customers.
The reasons why Citibank closed its consumer banking business in Indonesia are as follows:
○ Competition is increasingly fierce in Indonesia’s banking sector.
○ Changes in the behaviour of increasingly digital customers.
○ Incompatibility of Citibank’s business strategy with Indonesian market conditions.
Citibank Indonesia has sold its consumer banking business to PT UOB Indonesia. This acquisition includes credit card, unsecured lending and savings accounts businesses.
Citibank Indonesia customers with savings accounts will be transferred to UOB Indonesia savings accounts. Citibank Indonesia customers with credit cards will be transferred to UOB Indonesia credit cards.
Citibank Indonesia will also offer compensation to its customers, in the form of credit card refunds and discounts on savings account interest rates.
The following are some of the impacts of the closure of Citibank Indonesia:
• Competition in the Indonesian banking sector will become increasingly fierce.
• Citibank Indonesia’s customers will have fewer banking options.
• Citibank Indonesia will lose its source of revenue from the consumer banking business.
The closure of Citibank Indonesia is an important development in Indonesia’s banking industry. It shows that competition in Indonesia’s banking industry is getting tougher and banks need to adjust their business strategies to remain competitive.***
