Good morning.
Last year, I met my Citigold relationship manager in a part of Brooklyn I didn’t know to cash a check made out to me and my late husband because nobody could do it at my local branch. My manager couldn’t find the death certificate I’d given Citi and sent me home to get it. Last month, a manager in another branch asked me to provide proof of residence for my teenage son to convert a custodial account I’d opened when he was 2. He had ID but was not on my lease. (If I were a Citi shareholder, I might be less frustrated due to its recent run.)
And yet I stay put in an industry where inertia is the norm. While Americans are quick to switch phone carriers or shampoo brands, they’re loyal to their banks, keeping the same checking account for more than 17 years on average. The U.S. Has 4,568 commercial banks and savings institutions, more than any other country, but the 15 biggest banks account for the majority of deposits and assets.
So how do banks compete? Industry leader JPMorgan Chase is opening new branches as others close them. Banks acquire, poach rival talent, expand to new markets, or try to catch people at key moments: like when they open their first account—my son switched to TD—buy a home, refinance a loan, or seek help managing their money.
I caught up last week with Bruce Van Saun, the chairman and CEO of Citizens Financial Group, which he took from an IPO 10 years ago to the country’s 15th largest bank today. (Citizens was first established in Rhode Island in 1828.) He’s acquired, hired, and marketed his way there, now prioritizing areas like wealth management.
But he wants to differentiate through customer service. “I want them to say, ‘Wow, nobody covers me that way. No one invests the time and effort to really know me, know my business, understand my competitive position in my industry, and impart wisdom and value-added advice,” says Van Saun, adding that another key to growth is being conservative in areas like leverage. “When the economy goes through a downturn and certain banks suffer, then you’re in a strong position.”
Of course, it’s hard to anticipate the next crisis. Former Silicon Valley Bank CEO Ken Wilcox has plenty to say about that, but that’s for another day.
More news below.
Diane Brady
[email protected]
Follow on LinkedIn
TOP NEWS
Benioff takes on Microsoft AI
Salesforce CEO Marc Benioff described Copilot, Microsoft's AI chatbot designed to improve productivity, as having "disappointed" customers because of accuracy and response issues. Jared Spataro, Microsoft's corporate vice president for AI at work, responded to Benioff in a statement to Coins2Day claiming he is "hearing something quite different" from customers. Coins2Day
Telegram's financials revealed
Financial data obtained by the Financial Times reveals that Telegram, the encrypted messaging app whose founder was arrested in France last month, made a net loss of $259 million last year. Founder Pavel Durov, who was charged with crimes including allowing illegal transactions and the spread of child sexual activity on the platform, was previously eyeing an IPO and stated that he'd received offers valuing Telegram at $30 billion. Coins2Day
China's 'doom loop'
Analysis from China scholar Zongyuan Zoe Liu indicates that the weak earnings reported last week by PDD Holdings, the Chinese parent company of e-commerce behemoth Temu, are the latest sign that the country is straining under its focus on production. Liu, who works for the Council on Foreign Relations, recently wrote that China produces more than it can sell and "runs the risk of getting caught in a doom loop of falling prices, insolvency, factory closures, and, ultimately, job losses.” Coins2Day
AROUND THE WATERCOOLER
Why Lexmark ditched employee ratings in favor of honest conversations by Nick Rockel
Top Truth Social execs—including the CEO—are shedding stock before Trump even can by Sydney Lake
It took Wells Fargo 4 days to notice that an employee had died in their cubicle
by Chloe Berger
Drone companies are making huge leaps in regulatory approvals—the path to scale will still be tough by Jessica Mathews
Uber CEO Dara Khosrowshahi pulled off a dramatic culture change that led to profitability. Here’s how it’s done by Terence Mauri
Volkswagen considers first German factory closure in 87-year history by Ryan Hogg
This edition of CEO Daily was curated by Joey Abrams.
