Citi's giant branch-overhaul project includes focus on the human element.

NEW YORK - Nestled on a busy corner of tony Park Avenue, Citicorp's new headquarters branch is sending a strong signal to the market about the future of branch banking.

As consumer banking technology grows more sophisticated, cost-conscious bankers are increasingly questioning the need for investing in brick and mortar.

But Citicorp's model office and the strategy behind it demonstrate the importance of a well-designed branch network.

Citi's new office, modeled after Citibank's branch network in Chile, has floor-to-ceiling windows and a theater-style marquee. There are no tacky posters on the walls pushing bank products and interest rates. Furthermore, the office remains well lit even after hours.

$800,000 a Pop

By the end of the year, Citicorp hopes to make major design changes at 275 of its 1,400 branches around the world, at costs averaging some $800,000 a pop.

Six of its 531 U.S. branches - two in New York, two in Washington, D.C., and two in Northern California - have already been overhauled.

The made-over branch is the latest manifestation of "Citibanking" - the banking behemoth's strategy for presenting customers around the world with a consistent brand identity and set of products.

The idea, says Pamela Flaherty, the executive in charge of Citicorp's 212 New York branches, is to impress customers with how well Citibank treats them.

"Wherever you go, the customer flow is the same," Ms. Flaherty explained.

Citibank wants to make sure that no customer need wander around searching for right person to help solve a problem, she said.

To that end, the model branch has a "greeter station" staffed by an employee trained to greet customers as they enter the office.

Our commitment "is to never abandon the customer," Ms. Flaherty said.

The strategy is important for Citicorp, given the earnings power of its global consumer bank.

The consumer bank boasts a 1,400-branch worldwide network, and reaped income of $941 million in 1992, making it by far the biggest contributor to its parent company's profits. Citicorp earned $722 million last year.

Cutthroat Market

The new customer focus may also help the bank compete in the increasingly cutthroat New York retail market. Thanks to its merger with Manufacturers Hanover Corp., Chemical Banking Corp. has eclipsed Citicorp to become the market's largest consumer bank.

In a bid for more business, Chemical has restructured its entire retail department around marketing.

But the sheer size of Citicorp's franchise means its new strategy will also push competitors into refining their retail systems.

"There is a preconceived notion that the branch of the future is self-service," said Les Dinkin, a retail banking consultant in Westport, Conn. "But there is still a big people component.

Systemwide Changes

"There has been such an explosion in products and services that people welcome the information and guidance that a human being can offer," Mr. Dinkin said.

Ms. Flaherty stressed that the concepts behind the redesign - including new technology, employee training, and the service delivery systems - will soon appear in all Citicorp branches, regardless of their cosmetic appearance.

"We can't redo every branch, in the whole world to make it look like this in the next 10 minutes," Ms. Flaherty said while leading a tour of the headquarters branch. "But by the end of the year, all the branches will have the technological tools they need to implement the concept."

The "greeter station" in the model branch replaces the traditional customer service desk. With the swipe of a card, a branch employee at the station can learn the customer's name and entire Citibank history. The customer will never need to supply that information during a visit.

Making Life Easier

"We never want the customer to have to keep telling his story to different people in the branch," Ms. Flaherty said. If the greeter refers the customer to a loan officer, for example, the customer's history and a message about matter at hand is sent to the officer electronically.

Teller stations have also been equipped with terminals that enable agents to do everything from taking deposits to stopping payment on a check. The tellers themselves have been retrained to act as customer service representatives who can handle many of the transactions previously left to others.

Further advances allow branch employees to instantly create customized loan application and account-opening forms for their customers. The information customers need to supply is minimal, since much can be garnered electronically from their Citicards.

Farewell to Deposit Slips

Next year, developments in reader-scanner technology are expected to eliminate the need for consumers to fill out slips when making deposits, Ms. Flaherty said.

The headquarters branch is replete with self-service banking technology.

The front of the office boasts nine 24-hour "Citicard Banking Centers" with touch-screen ATMs as well as "Citiphones" for round-the-clock telephone banking.

People looking for investment counseling, for example, can book an appointment to speak with an adviser. Eventually, the branch will house 21 ATMs. Customers who come to the branch to open accounts are immediately presented with "Citicard" ATM cards and taught how to use them.

To accommodate the busy schedules of its customers, the branch stays open later than most; its hours are 8 a.m. to 6 p.m.

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