Citicorp's card chief plans to invade European markets two at a time.

Nearly a year into her job as the top credit card executive at Citicorp, Roberta J. Arena is preparing to blanket Europe with Citibank cards.

In a recent interview with the American Banker, Ms. Arena revealed that Citibank would enter two new markets in Europe every 12 to 18 months. Prime candidates initially are France. the United Kingdom, and Italy.

Ms. Arena's 20-year career at Citicorp -- the nation' s largest bank and its top credit card issuer has given her ample experience to succeed with such an ambitious plan.

Last January, Ms. Arena left Brussels. where she had spent four years as the regional business manager for Citibank's cards in Europe, to head up the U.S. credit card operation in New York.

Three months later, her responsibilities were expanded to include Canada and Europe. It was the first ume that New Yorkbased Citibank had put all those markets one executive. Citibank's presence as a credit card bank in Europe dates back only to 1988, and Ms. Arena moved to Brussels in 1990 to guide its progress.

Now, as executive vice president in charge of bank cards for North America and Europe, Ms. Arena is the first and only woman on Citibank's operating management committee, formerly known as the Group of 15. She also recently became the first woman on Visa's U.S.A. and international board of directors.

Despite holding the biggest job. in bank credit cards, the 46 year old executive has malntained a very low profile, generally avoiding media and other outside attention since arriving in New York.

Ms. Arena, who has gone back and forth between the United states and Europe several times joined Citicorp in 1973 and held various retail banking jobs. Among them were marketing director for Diners Club and chief operating officer for Citibank Florida.

During a conversation last week in Citibank's New York headquarters. Ms. Arena concentrated on the global nature of Citibank's card business. which is unique among U.S, banks.

Q.: How big is Citibank's card operation in Europe. specifically in Belgium, Greece, Germany. and Spain?

ARENA: We are heading north of about 700,000 cards this year in Europe. We have rather significant branch businesses in those markets, concentrated heavily in the major cities. We have about 300 branches in Germany and about 50 or 60 in Belgium.

Our next adventure in Europe is to go into a market where we don't have much of a branch presence. In France, we have two or three branches that are very visible in Paris, You will see us send out direct mail in France over the next 18 months or so.

Q.: What features does Citibank look for when it starts a card business in a new market?

ARENA: Of the 46 or 47 consumer banking markets [in the world], about half have credit cards. Usually, the ones we go into have some payment mechanisms. There is some telephone infrastructure, and more importantly, there is some consumer need for a payment mechanism that is widely used in a number of locations.

In some cases, we are catching up. Europe is a very developed market with lots of payment vehicles. In other places, like India, we are on the ground as the consumer banking system is being built.

Q.: When you met with analysts and the media in July, you said that Citibank wants to increase its European accounts by five million over the next five years, mostly by adding countries. What countries besides France is Citibank considering? ARENA: We are in four of the 12 markets in the European Community. Opportunity will dictate [which countries Citibank moves into next]. Italy, France, and the United Kingdom are the big three we are not in. On average, I think you will see us go into two markets every 12 to 18 months.

Q.: HoW do the markets for which you have responsibility compare?

ARENA: There are more similarities than differences in terms of how [consumers] use cards. If I showed you per-account behavior in terms of sales, delinquencies, writeoffs, you couldn't tell the difference, for example, between Belgium and Canada. And [those markets are] very similar to the United States.

There is probably 80% that is similar and 20% that is different in terms of consumer behavior in any given market. The business challenge is figuring out the 20%.

We have been leveraging our business in the United States, where we have a lot of our expertise in things like credit scoring, how to answer a telephone, and how to set up a telephone center. {Ciribank leverages its U.S. business[ by populating some of our who have had experience in the United States.

Our international businesses are now entering the next stage. We want to be significant players. And in some markets like Asia, Hong Kong, and Singapore, we already are. In Belgium, we are the No. 3 issuer, and we are very close to becoming No. 2.

This next stage [is focused] on getting the volume going. The key to doing that will be closer integration of some of the elements that drive the business. For example, we will be moving all the data processing from Europe to the United States. The benefit of that is considerable cost savings. But more importantly, it gives us product power.

Q: How?

ARENA: The U.S. software is adapting to multiple currencies and some vague differences in the law like how to calculate interest in different countries. Once all those changes are made -- we are just about done now -- we go into those markets with those systems, which have benefits and features like airline mileage.

This enables us to move in the market faster, and with a lot more power than most competitors who haven't [experienced the competitive U.S. market].

Q.: How is Citibank addressing the fact that debit cards are more popular than credit cards in Europe ?

ARENA: The debit card in Europe is the most convenient form of payment at the point of sale. The good news is that, in Belgium, France, Spain, and other countries, the point of sale is highly electronified, so it is not unusual to see other forms of plastic.

The strength of the debit card over credit really depends on the overdraft line of the checking account and how big and easy it is to use.

If, in the case of Germany, you get an overdraft account anywhere from four to five. times your monthly salary, it is a bit more difficult for credit cards. But in countries like France, where there is no overdraft, theft feature [is more appealing].

A lot of people pay us by direct debit instead of writing a check. They sign up to pay a certain percentage, and [originally] we gave them a choice of paying 5% or 100% of their purchases. [Today, there are more choices.] About 86% of our volume in Germany revolves.

[Debt] collectors in the United States hear this, and they think that people would never be delinquent with direct debit. But they are wrong. Direct debits can bounce.

Q.: So much is said about how the U.S. card market is saturated

ARENA: But saturated markets don't grow at 20%, and this year, the U.S. market looks like it will be 23% The market is not saturated.

Q.: Are international markets going to be the next source of growth for the industry and for Citibank?

ARENA: Well, for Citibank certainly. We are on the ground issuing cards for 23 countries. On average, we have been doing that for five years.

Q.: Citibank created a new position when you were promoted in March. What is the advantage of putting European, Canadian, and U.S. card operations under one umbrella?

ARENA: In some ways, it is a bit of an experiment. Our ability to move good people and ideas back and forth is facilitated by the fact that we are together. We have never done this before, so we'll see what happens.

It has been very energizing for the U.S. business. Our business here is so large, and people have had super careers, but it has been in a capsule. [Combining the businesses] is really what Citibank's essence is about.

Q.: How are you splitting your focus among the different regions?

ARENA: About a third of my time is spent on Europe and Canada, and two-thirds on the United States.

Q: How would you describe the experience you gained in Europe?

ARENA: The direct experience is obvious because I still have direct responsibility for Europe. At Citibank, we like to see a mixture of experiences because, if you have only done one thing in one geography, you are not exactly ready for the broader jobs. [International experience] really sharpens your basic ability to move in the market quickly.

I spent most of my career on the branch side. But this really does fit in with our philosophy of building a portfolio of experiences. The issues we have in the United States are essentially marketplace-driven. I am a marketing person by background.

Q: What would you export from each market to the other?

ARENA: Some of the basics we believe about the business have already been exported around the world. There is a basic service platform that we think any customer in the world wants.

They want access 24 hours a day, seven days a week, and a clear, accurate billing statement. This is the best developed market and therefore has the widest array of product ideas.

Coming the other way, I would export the debit card and automatic bill payment, which is routine in certain markets.

Q: Does Citibank compete abroad primarily on the basis of service or pricing?

ARENA: Service, and one of the key elements of service is accessibility.

Q.: Is Citibank an anomaly in some markets for offering its basic services?

ARENA: Absolutely. It is true on the banking side as well. We recognize that you are the customer, that it is your money. The United Kingdom is a very developed consumer banking market.

It is growing on these principles, but that is not necessarily the case in Hong Kong, where the attitude is not customer-service-oriented.

Q: In July, you said that Citibank's repricing decision gave the bank a new momentum. Did repricing also occur abroad?

ARENA: No. The markets are quite different. In fact, the fees on the product range from the equivalent of $150 for a gold card in Greece to $20 for a classic card in Belgium.

All of Europe is variable-rate. A lot of German banks charge you for calling customer service, so the whole pricing framework in Europe is quite different.

Q: Are people abroad paying fees for services that are considered basic in the United States?

ARENA: I'd say they are paying. I'm not too sure they are getting service.

Q: Is Citibank competing abroad against U.S. banks?

ARENA: Chase and Bank of America pulled out They used to be overseas in scattered places. I don't know if that is a great statement, [that only one bank in the United States] is going outside of its market.

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