Citi Releases Bank X, Report Maps Future of Banks

March 27, 2019 GMT

LONDON--(BUSINESS WIRE)--Mar 27, 2019--Citi today published a report titled ‘Bank X, The New New Bank’, highlighting how banking is being transformed by new challenger banks, launched by both new entrants and existing incumbent banks. The report includes contributions from several CEOs of Challenger Banks and also senior executives at incumbents who are trying to reinvent legacy banks.

“Creating their own Bank X, legacy banks can transform themselves from slow moving caterpillars to agile butterflies.” says Ronit Ghose, Global Head of Bank Research. The report will be featured at Citi’s 7th Annual Digital Money Symposium, London’s leading FinTech Conference on March 28.


The Great Financial Crisis required banks to focus their efforts on firefighting and survival through remediation and restructuring. While that was happening, challenger banks began to be built by new entrants. These challenger banks are designed around new digital technologies to meet current customer expectations, leveraging data insights via agile technology stacks to offer customers better personalization and fully digital banking experiences.

“Creating an ‘incumbent challenger’ sounds like an oxymoron, but as legacy banks recognize the threat that new entrants into banking are posing to revenue and customers, they need to reinvent themselves and reimagine banking.” says Ghose. “This involves legacy banks partnering with technology companies to create effective joint ventures as well as moving into more disruptive technology and business models to transform themselves into digital competitors.” he adds.

Legacy banks often have data that is stuck in multiple silos supported by core banking technology which was literally built in the age of black and white television. Challenger banks tend to be quicker at incorporating new products and processes into their platform, which helps easily connect with third-party products — offering more choices to the end-user.


The challenge for incumbent banks is that, while digitalization can lower costs by 30-50% over the next decade relative to underlying trends, new competition and greater transparency is likely to lower revenues by 10-30%. In a bullish scenario, if banks successfully transform digitally, bank ROEs will rise from 8pct in Europe and 16pct in the US to 15pct and 24pct respectively; in a bearish scenario 5pct and 10pct.


Citi is one of the world’s largest financial institutions, operating in all major established and emerging markets. Across these world markets, our employees conduct an ongoing multi-disciplinary global conversation – accessing information, analyzing data, developing insights, and formulating advice for our clients.

As our premier thought-leadership product, Citi GPS is designed to help our clients navigate the global economy’s most demanding challenges, identify future themes and trends, and help our clients profit in a fast-changing and interconnected world. Citi GPS accesses the best elements of our global conversation and harvests the thought leadership of a wide range of senior professionals across our firm. This is not a research report and does not constitute advice on investments or a solicitation to buy or sell any financial instrument. For more information on Citi GPS, please visit


View source version on

CONTACT: Francesco Meucci

EMEA Public Affairs





Copyright Business Wire 2019.

PUB: 03/27/2019 04:00 PM/DISC: 03/27/2019 04:00 PM