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Citibank opened its consumer banking business in Beijing yesterday, becoming another player in the intensely competitive foreign exchange wealth management sector.
Though Citibank is certainly not an early bird in this sector, as already about a dozen foreign banks have received licences for comprehensive foreign exchange services in Beijing and more domestic banks are in the same business, it still marks a strategic move by the US-based bank to further explore the Chinese market.
"We will provide comprehensive foreign exchange services to consumers in Beijing," said Linda Wong, Consumer Bank head of Citibank in China, at a press briefing yesterday in Beijing.
The consumer banking business has a large potential for growth in China. It is expected to develop at a much faster pace than many overseas markets, she said.
Presently, the bank's target customers in consumer banking are still travellers, business people and those with demand for good foreign exchange banking services.
The bank's Shanghai branch, the first foreign bank to offer banking services to Chinese citizens two years ago, has provided diversified foreign exchange wealth management services to local consumers.
"We hope we can get approval from the China Banking Regulatory Commission to launch some foreign exchange investment products in Beijing soon," Wong said.
Robert Willumstad, President and Chief Operating Officer of Citigroup, the parent of Citibank, said yesterday that China is a strategic priority for the group.
Apart from consumer banking, corporate banking and investment banking businesses, Citigroup is also expected to enter the insurance business in China in the near future, he said.
Other global banking giants, like HSBC, have also muscled their way into the Chinese market, by promoting their services in different cities as they anticipate the full opening up of the banking market in the country expected by the end of 2006.
In Shanghai, HSBC, Citibank and three other foreign banks received the first batch of licences to conduct renminbi business with Chinese corporations in the city last month.
Last week, Standard Chartered also won its first renminibi business licence in the southern city of Shenzhen.
The most exciting part of opening up, experts say, will be the opening of Renminbi retail business, which will provide foreign banks with more local currency deposits and funding to expand here.


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