- Citigroup announced changes in its technology and services divisions.
- CEO Jane Fraser is on a mission to simplify the bank's structure and focus on profitable business areas.
- Amid the reorganization, two key executives are leaving the bank.
The sprawling Citigroup is no stranger to restructuring since Chief Executive Jane Fraser took the helm of the World Bank in 2021.
This time, the company announced internal changes in two departments that are key to its transformation. One is the technology division that supports the giant banks, and the other is the services business. The latter helps customers manage and move money globally, and Fraser calls it the bank's “crown jewel.”
Fraser inherited a bank with regulatory issues and outdated technology that lagged behind other well-known peers. Since then, she has sold businesses, announced layoffs in thousands of positions and brought in several top executives to help revitalize areas such as technology, wealth and investment banking.
“You will see that we are making tangible progress in executing the strategy we laid out at our Investor Day three years ago,” Fraser said on a call with analysts last week. “Since then, we have significantly simplified the company.”
Citi's head of technology, Tim Ryan, and head of services, Shamir Khalik, sent a memo to employees on Monday announcing the changes seen by Business Insider. Below are the changes announced by each executive and their reasons.
technology reorganization
In a memo to the bank's technology and business enablement employees Monday, Ryan said the bank is working to respond to rapid technological change and “position Citi as a top destination for engineering talent.” He said he was reconsidering his management team.
The leadership shakeup will also lead to a team-wide move to better align with the company's mission, which Ryan said will be communicated soon.
Tim Ryan will join Citi as its new head of technology in mid-2024. Provided by City
“I know this organization has been through a lot over the past 18 months,” Ryan said. “I want you to know that I am making these changes to secure the future of the City and, in doing so, create opportunities. This is the big picture I want.”
Mr Ryan said he had been evaluating the technology team's weaknesses and strengths since joining accounting firm PwC last June from its top job in the US.
The leadership change also comes after news last Thursday that the bank's co-chief information officer, Shadman Zafar, would be stepping down. This magazine reported it first.
Jonathan Lofthouse is now the company's sole chief information officer, according to the memo. His team will be responsible for all business technology and will have a “relentless focus” on accelerating the modernization and simplification of the bank's technology stack.
Other changes to the lineup include:
- Al Tarasiuk, chief information security officer, will be responsible for underlying services, which in addition to security will also oversee technology infrastructure.
- Julien Courbe joins Citi from PwC Responsible for functional and corporate transformation. His team will be responsible for functional, risk and financial technology.
- David Griffiths has been appointed Chief Technology Officer, Head of Emerging Technologies and Strategic Partnerships. He will work across the organization to deliver and integrate the company's technology tools. “He will leverage his unparalleled access to the world's best technology to ensure the City stays ahead of the future,” Ryan said. Mr. Griffiths previously served as Head of Engineering and Architecture.
- Anne Baron DiCamillo will take on the newly created role of head of technology optimization and risk reduction. She will focus on “optimizing” Citi's software to make it consistent and simple across the business. She previously served as Global Head of Cyber Operations.
service shuffle
Last summer, Citi spent an entire day talking to investors about one of its oldest businesses, Citi Services.
The business is being restructured and a 35-year Citi veteran and key leader within the division is retiring. City Services, one of the bank's five major business units, is seen as a unique business that can be leveraged for further revenue growth and is central to Fraser's turnaround strategy.
Okan Pekin, global head of securities services, has decided to leave the bank and pursue new opportunities, according to a memo from Halik to employees. Mr. Okan will remain at City until the end of March as a member of the service management team.
Okan Pekin speaks at Citi's Services Investor Day in June 2024. city
His division works with investment managers and issuers of debt and equity, and has two business units: Issuer Services and Investor Services. In a separate note, Khaliq said investor services include custodial, treasury services and execution services. The company is looking for a new head of investor services.
Mr. Pekin has led Citi's asset manager services since 2013. Under his leadership, he restructured the business, won multiple client mandates and built Citi's ETF business.
He joined the company in 1989. During his time at Citi, he led sales for Citi's Europe, Middle East and Africa markets division and helped Citi become a leader in the foreign exchange business.
Citi Services' business lines also include payments, liquidity management services, and trade and working capital solutions.
Artie Ambrose, Citi's current head of finance and trade solutions operations, will take on an expanded role as head of services operations.
Khaliq said the division's structure “continues to evolve” and that the banks would share a larger stake once Beijing's successor is appointed.
“We believe these changes will drive our continued momentum as a company and open up greater mobility opportunities for our talent across our various businesses,” he said.