Citigroup chief executive Jane Fraser has said the bank’s next phase will be defined by a drive for excellence, after it reported its strongest third-quarter revenue in a decade.
Speaking virtually at Fortune’s Most Powerful Women Summit, Fraser said much of the difficult work involved in reshaping Citi had been completed. The bank’s first woman chief executive said the focus would now turn to outperforming its strongest rivals.
“We’re definitely in the more fun part of everything that’s going on. We’ve got a lot of the heavy lifting behind us,” Fraser said during a conversation with leadership editor Claire Zillman.
“Now what I’ve said to the firm is, if we are going to be the best in the businesses we’re in, we have to beat the best,” she added. “So it’s that mindset of excellence, and that’s the next phase of the journey.”
Fraser became chief executive in 2021 with a mandate to simplify the sprawling global bank. Since then, Citi has been reorganised into five core businesses, reduced layers of management and begun withdrawing from consumer banking in 14 markets outside the US.
The restructuring also includes 20,000 job cuts, which are due to be completed before 2027.
Fraser said difficult decisions should be communicated directly but with consideration for those affected. Reflecting on a restructuring of Citi’s mortgage business, she said employees wanted to hear “the hard truth”, as well as what the company would do to support them.
“You do not have to be tough and unpleasant about it, but you do have to be straight,” she said.
Artificial intelligence and trust
Fraser said artificial intelligence would be central to Citi’s next stage, with the technology able to generate revenue, reduce costs and strengthen the bank’s security.
“We have to move fast and retain trust,” she said.
One application being developed for Citi’s wealth business is an AI avatar agent, created with assistance from Google DeepMind’s team, which can speak to clients at any hour.
Fraser said the system could respond while bankers were sleeping, but stressed that it was “not a replacement team member”. She said it remained unclear whether AI would ultimately reduce Citi’s headcount, as some roles were automated while others were created.
The bank is also requiring 175,000 employees to complete AI training, including instruction on writing prompts.
Fraser said the need to manage risk had to keep pace with technological development, with banks working together to identify and fix vulnerabilities.
“You don’t compete on cyber,” she said. “You collaborate on cyber.”
“I never think people perform well if they’re fearful,” Fraser added.
