Citi eyes Korea's mid-market growth as key global hub
Tasnim Ghiawadwala, global head of commercial banking at Citi, reaffirmed the bank's long-term commitment to Korea, describing the country as a hub of innovative mid-sized companies eager to capture global market share.
From cosmetics brands breaking into European retail chains to industrial suppliers expanding alongside global clients, she said Korea's export-oriented companies offer fertile ground for the bank's cross-border financing and advisory services.
Making her first visit to Korea since assuming her role in 2021, Ghiawadwala spent three days meeting key commercial banking clients and reaffirmed Citi's long-term commitment to the Korean market.
'As Citi continues to grow its commercial banking client base worldwide, Korea remains a strategically important market within its global franchise,' Ghiawadwala said in an exclusive interview with The Korea Herald while visiting Seoul starting Tuesday.
She shared her views on Citi's global strategy, how Citi Commercial Bank (CCB) supports client growth across markets and why Korea is integral to the bank's mid-market ambitions.
Q. How important is the Korea market to CCB, and what does Citi hope to achieve here?
Korea is an incredibly important market for CCB. We see Korea as one of the more exciting and active markets in Asia with innovative mid-sized companies disrupting long-established industries globally or reshaping the state of the global supply chain.
Take beauty and skincare as an example. Since COVID-19, there's been an explosion of demand for Korean beauty and skincare brands not only at home but abroad as well – in the UK, Boots, a well-known pharmaceutical and beauty store, has started carrying select Korean beauty brands.
CCB Korea provides banking services to the full K-beauty ecosystem, including major cosmetic ODMs, K-beauty brands and online retailers to aid in their global expansion. For example, a leading Korean skincare manufacturer seeking to set up overseas manufacturing facilities needs capital – that's where we can step up and support not just in one country but across the globe, including China and the US.
A Korean online retailer selling abroad in the US and select European and Middle Eastern markets needs support with FX hedging and payments – again, CCB has provided those essential products and services to help grow sales.
In recent years, Citi has supported Korean companies in strategic cross-border initiatives and maintained a strong relationship with K-SURE, aiding outbound financing and export capacity building.
Q. What are some emerging industries or sectors in Korea where CCB sees strong growth potential, and how is Citi helping clients tap into those opportunities?
In Korea, Citi Commercial Bank is structured by industry verticals, with teams of bankers specializing in specific industries. This allows us to deliver tailored financial solutions leveraging Citi's global capabilities across financing, global cash management, FX or cross-border expansion.
Two sectors with strong momentum are digital technology & communication and industrials.
These include online travel agencies, K-beauty ecosystem, cloud services, platform businesses, and mid-sized Korean suppliers across auto-parts, semiconductors, chemicals, and consumer electronics – many critical partners in the value chains of Korea's leading corporates.
As these companies grow globally and expand production alongside their clients, Citi provides working capital loans and global cash management.
For example, we support Korean suppliers entering new markets with solutions to manage liquidity, optimize FX flows, and navigate regulatory environments.
Q. Could you tell us more about Citi Commercial Bank – the types of clients you serve, the financial solutions you provide, and where CCB operates globally?
Citi Commercial Bank is an important part of Citi's strategy and a key growth driver. We have identified a significant opportunity to expand Citi's value proposition to mid-sized corporates globally.
Our aim is to deliver all products and solutions available at Citi — payments, liquidity management, trade finance, working capital, hedging and advisory services — to mid-sized corporates throughout our global network spanning more than 90 countries.
We generally define our market segment as companies with annual sales between $10 million and $3 billion.
Our client base typically consists of mid-sized corporates that either already operate in multiple geographies or have plans for international expansion.
As a leading global bank with an extensive network, we support these clients with diverse products across multiple countries and entities.
Q. How important is the CCB business to Citi's overall franchise? How does CCB contribute to the bank's equity story?
CCB is a significant contributor to our banking franchise and broader Citi. Within Banking, we work closely with the Investment Bank and Corporate Bank to provide strategic client coverage.
We offer select mid-sized clients access to investment banking products and solutions, supporting them through their entire life cycle.
We also advise finance and treasury teams and C-suite executives, tailoring financial strategies to their needs.
This may involve leveraging products from other Citi businesses, such as treasury management, working capital and FX hedging.
Many clients are privately owned, so we partner with our Wealth business to support founders and senior management with wealth management, enabling seamless management of financial and business affairs.
Q. What are your key global priorities for the CCB business?
Our key priorities include executing the 2022 growth strategy, aiming to double our market share in the addressable wallet to 4 percent.
We've advanced initiatives such as upskilling bankers with training on market knowledge and Citi's product offerings, enhancing client-centric advisory.
We launched CitiDirect Commercial Banking – a digital platform providing clients one-stop access to products and some self-service capabilities.
Global banker driving Citi's mid-market push
Before rejoining Citi in 2021 to lead Citi Commercial Bank, Ghiawadwala held senior leadership roles at Barclays and Citi across Europe, the Middle East and Africa, driving business expansion, innovation and key initiatives such as the UK COVID-19 government loan schemes.
With over 20 years of experience in investment, corporate and commercial banking, she is recognized for her leadership in promoting workplace equality and diversity. She holds a degree from King's College London and is a Chartered Management Accountant.
hnpark@heraldcorp.com
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