Citigroup to Invest $1B in Mexican Banking Unit
Citigroup on Tuesday said it will invest $1 billion over the next four years to upgrade technology and provide a range of new services in its Mexican banking division.
The investment will be used improve digital banking platforms and boost security standards. It will also provide the division, based in Mexico City, with 2,500 new ATMs and more modern branch technology.
Additionally, Citi said that it will rebrand the division — which it acquired 15 years ago — as Citibanamex. It was previously known as Banco Nacional de Mexico, or Banamex.
“Our goal is nothing less than to create a state-of-the-art bank in Mexico, fully focused on delivering a richer, smarter, more intuitive experience to everyone who does business with us,” Chief Executive Michael Corbat said in a press release.
The investment comes two years after Citi uncovered fraud in the Mexican division resulting from illegal conduct in a now-disbanded personal-security unit. The fraud amounted to about $15 million and was “not financially material,” the company said at the time.
It also comes as Citigroup has exited other Latin American markets. The company in February announced plans to sell retail operations in Brazil, Argentina and Colombia.
Citibanamex has over 1,500 branches, according to the release.