Citibank to Exit Australian Retail Banking

[Gladstone Tim]

I wonder if RACQ Bank might throw their hat into the ring. I know Citi has been the issuer of at least some of their credit cards (yet still branded Queensland Mutual Teachers Bank).

 

[albyd]

Hopefully HSBC will see it as an opportunity to bulk up in Australia otherwise I fear they may be next as they are more of a fringe dweller than Citi. At least they have branches.

 

[jakeseven7]

ACCC boss Rod Sims warns big four not to buy Citi's retail bank

Citi is Australia's fifth-largest credit card provider, but it is planning to sell up and get out of the consumer market. The ACCC says it does not want one of the big four banks to buy the business.

www.abc.net.au

 

[Chicken]

Hopefully HSBC will see it as an opportunity to bulk up in Australia otherwise I fear they may be next as they are more of a fringe dweller than Citi. At least they have branches.

I will move away if HSBC takes over. I avoid using HSBC due to political prosecution in Hong Kong and also their indirect funding of Adani. I also don't see them as a safe nor stable bank, as they are putting too much of their reliance on the mainland Chinese market. President Xi gets upset and their profit would disappear. HSBC is already a fringe dweller:
- HSBC bet the bank on China. It's in big trouble if tensions escalate
- Human rights and climate crisis give HSBC an image problem
- 5 things to look out for in HSBC’s upcoming strategy update

I don't think it is likely, but it would be good if someone more innovative comes in, like DBS.

 

[albyd]

Unfortunately, our market is too small. Be interesting to see who steps up to buy Citi AU. ACCC will likely veto a big 4 (though ANZ was one of the front runners to buy Me). A foreigner buying it would be an emphatic statement they’re not leaving.

Likely Macquarie might buy it if given enough guarantees over the higher risk Credit Card business. BOQ is too busy integrating ME though it might take Citi some time to find a buyer.

 

[Must...Fly!]

Macquarie seems a pretty decent theory. It would give them a significant leap forward in their retail banking division which they've been heavily pushing over the last year or so.

 

[Flashback]

Sad to read about this, makes me wonder what the point is in getting my ID documents certified, posted from the UK to Aus etc. when the account will likely go the way of the dodo soon anyway. Perhaps this is what's driving them to re-verify people's ID, to get rid of accounts that aren't active and sell the bank with a number that is more 'true'?

Main benefit for me (living overseas) and travelling is ATM fee free withdrawals in USA and Thailand, but looks like their Thailand business is being sold too.

 

[Chicken]

Sad to read about this, makes me wonder what the point is in getting my ID documents certified, posted from the UK to Aus etc. when the account will likely go the way of the dodo soon anyway.

Why would this be? Why would anyone back track? So many banks are now doing the same thing, Suncorp, Macquarie, ING, some credit unions ...

Perhaps this is what's driving them to re-verify people's ID, to get rid of accounts that aren't active and sell the bank with a number that is more 'true'?

Um, have you ever been asked by auditors or controls to do something? If you have, you would know that, no one would ever start an exercise like this, because this is a complete PITA and does not deliver any value. People have more important things to do than doing this kind of work ..... I am pretty such that the staffs would have pushed back, but got told to do this by controls ......

 

[Flashback]

Why would this be? Why would anyone back track? So many banks are now doing the same thing, Suncorp, Macquarie, ING, some credit unions ...



Um, have you ever been asked by auditors or controls to do something? If you have, you would know that, no one would ever start an exercise like this, because this is a complete PITA and does not deliver any value. People have more important things to do than doing this kind of work ..... I am pretty such that the staffs would have pushed back, but got told to do this by controls ......

Perhaps best to just reference this thread.

Help opening AU bank account overseas

Gosh Citibank infuriates me. Received an e-mail (verified by calling in that it is legitimate) that I need to provide certified copies of my ID again. This is for an account that's been open nearly 20 years, they say they don't have any hard copies on file. That's odd given it was provided to...

www.australianfrequentflyer.com.au

 

[Lynda2475]

ad to read about this, makes me wonder what the point is in getting my ID documents certified, posted from the UK to Aus etc. when the account will likely go the way of the dodo soon anyway. Perhaps this is what's driving them to re-verify people's ID, to get rid of accounts that aren't active and sell the bank with a number that is more 'true'?

I suspect they want to be able to bundle up validated customers so that a buyer can target similar products to a guaranteed customer base.

 

[QF_Flyer]

Citibank have always been fringe dwellers in the Australian market.
in the US Citi are really on the ball.
Australian Citi cards may end up with Latitude or even BOQ.
Ahmed Fahour who is now at Latitude did work at Citi a few years ago.
Mrscove has used Citibank debit for getting cash in the US and UK.

Re the Aussie Citi cards, that's If they end up anywhere - Citi used to issue credit cards in the UK (Citicards) until sometime around the GFC, the cards were spun off all over the place. I think some went to SAV Credit, which issued a heap of random cards for a while (Aqua/Opus, etc.), so somewhere like Latitude wouldn't surprise me.

Not sure what happened to Citi's own branded cards in the end, but those like the AAdvantage ones were eventually wound up (MBNA issued a heap of airline cards including AAdvantage until around a few years ago, AA/VS/EY/EK/UA I believe, so they obviously ended up with that contract). Egg went to Barclaycard, some of the others (like easyJet's credit card) just disappeared.

Citibank itself still operates in the UK too, albeit only on a Citigold/Wealth level, but the US banks have been exiting Europe gradually (MBNA, which was originally owned Bank of America, is now owned by Lloyds in the UK, not sure about MBNA Canada).

Wonder what'll happen to QF Money.

 

[Chicken]

Perhaps best to just reference this thread.

I was responding to your comment about the benefits being rolled back, not the pain of doing ID check, sorry I didn't quote property.

You can open Ubank online without presenting any document.

 

[Flashback]

I was responding to your comment about the benefits being rolled back, not the pain of doing ID check, sorry I didn't quote property.

You can open Ubank online without presenting any document.

But there are residency requirements plus local phone number, etc. last time I tried to apply. Given I don't want to lie and use someone else's details there, it doesn't present as an option available for me to use.

 

[Supersonic Swinger]

Re the Aussie Citi cards, that's If they end up anywhere - Citi used to issue credit cards in the UK (Citicards) until sometime around the GFC, the cards were spun off all over the place. I think some went to SAV Credit, which issued a heap of random cards for a while (Aqua/Opus, etc.), so somewhere like Latitude wouldn't surprise me.

Not sure what happened to Citi's own branded cards in the end, but those like the AAdvantage ones were eventually wound up (MBNA issued a heap of airline cards including AAdvantage until around a few years ago, AA/VS/EY/EK/UA I believe, so they obviously ended up with that contract). Egg went to Barclaycard, some of the others (like easyJet's credit card) just disappeared.

Citibank itself still operates in the UK too, albeit only on a Citigold/Wealth level, but the US banks have been exiting Europe gradually (MBNA, which was originally owned Bank of America, is now owned by Lloyds in the UK, not sure about MBNA Canada).

Wonder what'll happen to QF Money.

And what will happen to the "fee free for life" Signature? Likely whoever picks it up might only give a year or two grace?

 

[albyd]

Likely intensify the marketing push to get you to use it like Citi have been doing by offering more attractive interest rates (I think something with a ‘5’ rather than 20+ is relatively attractive) as they’re likely twigged to the 0% BT where the savvy who don’t need the credit would just put it in their offset accounts which is why the ‘establishment’ fees have been introduced & no one waives them.

 

[http_x92]

Also wondering what would happen to the Qantas Money (now issued by citi and has the best QF points per dollar rates for a Visa/MC) and the Citi Signature free for life card with this situation now (an Australian favourite)... wonder if the potential buyer would allow the existing users to keep these cards.

 

[jonboixxx]

Also wondering what would happen to the Qantas Money

Yeah, apart from my AMEX, one of my best points earners.

 

[Chicken]

And what will happen to the "fee free for life" Signature? Likely whoever picks it up might only give a year or two grace?

Also wondering what would happen to the Qantas Money

and the Citi Signature free for life card

No point guessing, since we don't even know who would be buying our accounts.

I have multiple home loan accounts with them (both OO and investment), Citibank Plus is the least of my concern. I can't find a bank as flexible as Citi with approving home loans

 

[AviatorPJ]

I called the CITIBANK media contact person who confirmed that my CITIBANK Global Foreign Currency Account is on their sale list.
The Global Foreign Currency Account sits under the CITI Wealth Management category of their Consumer Banking.

 

[Chicken]

I called the CITIBANK media contact person who confirmed that my CITIBANK Global Foreign Currency Account is on their sale list.
The Global Foreign Currency Account sits under the CITI Wealth Management category of their Consumer Banking.

Of course. If you read the news articles posted so far, Citi is selling all their consumer banking. You will be sold, unless you use their institutional products.