Citizens targets gap between consumer, commercial banking

Citizens Financial Group is focusing on bridging the gap between consumer and commercial banking by expanding its business banking offerings. The $233.8 billion asset lender has made investments in product development, technology, and geographic expansion to serve clients across the business, private banking, and wealth management sectors. Citizens' business banking division caters to clients with annual revenues ranging from startups to $50 million.

The company has recently added bankers in key markets such as New York City, South Florida, and parts of California, aiming to capitalize on the untapped growth potential in the lower middle market to upper business banking segment. Citizens sees an opportunity in this segment, stating that there is a lack of focus on this customer base by other players in the industry.

The bank's strategy also includes targeting New York, Florida, and California for its private-banking push. Private and wealth clients often own businesses or are connected to them, making them a potential source of expansion for Citizens. The bank has hired additional relationship managers in these markets to cater to clients with $5 million to $50 million in annual revenue.

Citizens believes that the gap between commercial banks serving higher-end clients and those serving the middle market is significant. By having business, private, and commercial bankers under one roof, Citizens can present a unified service to customers more efficiently. The bank is also working on streamlining its learnings and technology capabilities across all units to improve customer experience and differentiate itself from competitors.

Furthermore, Citizens is investing in product and technology advancements to cater to the evolving needs of its business customers. The new mobile app launched this year includes upgrades to business banking components, and the lender aims to make the connection between personal and business accounts more transparent within the app. Integration with payroll firm Gusto is also being explored to enhance the overall banking experience for business clients.