Since of Smart Branches in 2010. A Smart Branch

Since Medieval Ages managing money and exchanging currencies has been
one of the fundamental part of society. Exchanging money by people working in
banks have defined the way commercial banking works. The old hand to hand
exchanges are becoming a thing of past thanks to new advances in technology.

One of the biggest investors in technology is the Financial Industry. In the
past 10 years, spending on tech has drastically increased and is currently $19
Billion. The Tech Revolution in the banking industry is lead by Citibank. In
addition to that Citibank came up with an idea of Smart Branches in 2010. A
Smart Branch is basically an advanced bank which has similar aesthetics to
current apple stores. And with this Citibank becoming more digital (CNBC 2018).

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To prove that the impending change is needed and genuine, one only need to look
at China handling the banking sector, for organizations such as Alipay and
Tencent have more customers than nation’s best banks. A Citibank official said
“Our consumer bank business in Asia draws some 20 Million visits every month
and between 90 to 95 percent of all transactions already happens outside a
branch” (Citigroup Inc. 2018). The SWOT Analysis of the evolving banking
business model is as follows:

Strength

·      Solid Brand acknowledgement

·      Persistent interest in innovation

·      Expansion of products and Services

Weakness

·      ERP function fails

·      Difficult to do analytics and
reporting

Opportunities

·      Expand Global banking

·      Offer new ways of Banking

Threat

·      Substantial Rivalry

·      Large Investment required in tech