Chief Executive: Citigroup won’t use high deposit rates to win digital accounts
NEW YORK (Reuters) – Citigroup Inc (C.N) does not plan to utilize high deposit rates to pull in customers to its new digital bank accounts when it starts marketing this fall, the Chief of its global customer bank said on Tuesday.
At a speculator investor gathering, Stephen Bird said offering high rates has a tendency to draw in “hot cash” investors rather than loyal customers. Rather, the bank will showcase the records and market broadly to its Credit Card Customers, for example, holders of its Double Cash card and cards it issues for American Airlines Group, (AAL.O) and Costco Wholesale Corp (COST.O) and Home Depot Inc. (HD.N)
Stephen stated, for instance, that offering extra American Airlines mileage credits will pull in a stable deposit to the bank.
Citigroup, the third-greatest U.S. bank by resources, has less than 700 branches, situated in just six cities. It said in March that it will offer records broadly on new mobile application.
Other banks like Rhode Island-based territorial bank Citizens Financial Group Inc, (CFG.N) have additionally said they will offer accounts nationally on digital applications, raising investor concern about more rivalry in rates for deposits.