Citigroup announces major investment in online and mobile banking

Citigroup has announced plans to create a new global technology platform for Internet and mobile banking as part of its aim to attract wealthy customers.

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Citigroup has announced plans to create a new global technology platform for Internet and mobile banking as part of its aim to attract wealthy customers.

According to Reuters, the head of Citigroup’s North American consumer bank, Manuel Medina-Mora told a US financial services conference yesterday that the company wanted to spend between $3 billion and $4 billion (£1.9 billion and £2.5 billion) on technology, infrastructure, hiring and marketing, to draw in more affluent customers.

In February, the bank revealed it had eliminated $1.42 billion (£904 million) from its technology and communications costs over 18 months, through dramatic changes to servers and storage, better system integration and processes, and the elimination of legacy software.

Now, however, Medina-Mora, who is also chairman of Citigroup’s global consumer council, said the bank hoped to build the new technology platform for Internet and mobile banking by the end of 2011.

Earlier this year, Citigroup was forced to warn customers using iPhones to access the mobile banking accounts to upgrade because a security flaw in the its Citi Mobile app saved banking information, possibly including account numbers, in a hidden file on the smartphone.

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