Upgraded processes, due to advanced data standards, further complicate financial matters according to Citi's Chief Financial Officer.
Citi Makes Progress in Regulatory Reporting and Technology Modernization
Citi is making significant strides in enhancing its regulatory reporting processes and technology infrastructure, as part of a broader industry trend towards leveraging artificial intelligence (AI) and automation to strengthen accuracy, compliance, and operational resilience.
The bank's focus on data improvement for regulatory reporting is integrated into broader transformation initiatives aimed at modernizing risk management and compliance frameworks. Citi reports progress towards an end-to-end risk management lifecycle and enhanced compliance risk management aligned with regulatory requirements.
To achieve this, Citi is deploying AI and automation tools to increase speed and productivity in data handling and report generation. This includes automating code reviews and streamlining workflows, which reduce manual effort and improve data quality. The bank is also hiring specialists in regulatory reporting data analysis and quality management who work closely with IT and business units to ensure data accuracy and regulatory compliance.
Industry-wide, banks are investing heavily in data governance, technology simplification, AI adoption, and cross-functional collaboration to meet rising regulatory demands. Citi exemplifies this trend through ongoing application retirements, enhanced payment controls, and upgraded loan platforms across regions. This comprehensive approach aims to reduce errors, accelerate reporting cycles, and respond proactively to regulatory changes.
Citi's CEO, Jane Fraser, has stated that the bank is committed to spending what's necessary to address the consent orders. The bank's CFO, Mark Mason, defended the company's spending this year, noting the need to increase what it's allotted to transformation and risk and control work.
Investment banking fees at Citi are expected to be up 25% to 30% year over year when reporting earnings in January. The strength in investment banking fees is due to strength in mergers and acquisitions, equity, and debt capital markets.
Regulators imposed penalties totaling $135.6 million on Citi in July. Citi continues to work to address data, risk, and control deficiencies flagged by regulators. The bank's CFO, Mark Mason, stated that 2025 is expected to be another year of continued focus on the execution of the transformation, which executives have said is their top priority. Citi spent $12.2 billion on technology last year and has brought over Vis Raghavan from JPMorgan and bolstered hiring in the investment banking segment.
Despite the challenges, Citi is continuing to gain share in the investment banking segment, demonstrating the bank's commitment to its transformation efforts and its ability to adapt to the changing regulatory landscape.
- Citi's focus on leveraging AI and automation tools in its regulatory reporting processes and technology infrastructure is aligned with broader business initiatives aimed at modernizing risk management and compliance frameworks, particularly in the finance sector.
- As part of its ongoing transformation efforts, Citi is investing in hiring specialists in regulatory reporting data analysis and quality management, working closely with IT and business units to ensure data accuracy and regulatory compliance across various finance and technology domains.
