Citi’s exit from consumer banking is ‘no surprise’

On Thursday, the New-York based Citigroup said it will exit the consumer banking business in 13 countries across Asia and Europe as well as the Middle East and African region.

NEWS that American banking group Citigroup Inc is closing down its consumer banking business in 13 markets, including Malaysia, does not come as a surprise and has ignited fresh concerns that competition in the banking space can only get more heated.

With costs increasing 3% to 5% yearly on a general basis and product and servicing charges remaining flat or on a decline, observers say it is now not only the smaller consumer-centric banks that are struggling but lenders of all sizes.