Citi: Mobile money is a "game changer" for banking

Citi: Mobile money is a "game changer" for banking
Photo by Giorgio Trovato / Unsplash

Citigroup's chief executive Jane Fraser says mobile apps and the ability for consumers to transfer millions of dollars with the click of a button will bring fundamental changes to how banking is run while regulators are forced to react to the risk of customers withdrawing their bank deposits, Bloomberg writes.

The recent liquidation of Silicon Valley Bank has made it difficult for banks to assess and prepare proposals for its assets. Fraser said her firm hoped a buyer for the assets would emerge in the coming days.

"This is a complete game-changer compared to what we have seen before. I think the regulators have done a good job responding very quickly."
In just 11 days this month, four banks collapsed at once, including three US regional lenders and Swiss financial giant Credit Suisse. A fifth bank, First Republic Bank, is faltering. Its shares have reversed sharply amid turmoil in global financial markets and investors have lost billions of dollars.
Citigroup was among 11 banks that joined First Republic last week to provide $30bn in deposits to support it amid customer withdrawals and credit downgrades. Wall Street leaders and regulators are still looking for a rescue plan and exploring government support.
However, Citigroup is not interested in buying First Republic and believes that the string of bank failures has been isolated, as the biggest US banks remain financially strapped.