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Citibank Korea plans to cut three-quarters of its 133 branches in the country by the end of 2017 – a move that dovetails with the American lender’s push towards digital and private banking, according to media reports.
The branch closures are part of Citibank’s downsizing strategy, according to a report by the Nikkei Asian Review, which added that the lender closed five branches last Friday.
A spokesperson for the bank said that the closures are part of the Korean unit’s plans to “move to digital”.
The bank will also set up five wealth management centres in Seoul to “offer team-based private banking services for wealth customers”.
Indeed, in March, Citi Korea unveiled plans to grow client numbers by 50% across its emerging affluent and affluent segments, and double AUM in its wealth management business by 2020. At the time of the announcement, a spokesperson for the bank told Asian Private Banker that HNWIs are included in its targets, and that three wealth management centres – located in Seoul, Dogok and Bundang – will be opened in 2017.
Citi Korea also said that 95% of transactions in Korea’s financial markets are carried out via non face-to-face channels. The bank launched an automated advice tool, Total Wealth Advisor (TWA), with Hong Kong-based tech vendor, Prive Managers, in Korea in September 2016.
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