Citigroup’s consumer bank made $33 billion in revenue last year and is hoping its digital transformation will help it continue that trajectory.
To that end, Chief Financial Officer John Gerspach told investors last July that digital banking will mean a 20 percent reduction in the cost of serving its 110 million customers in the U.S., Mexico and Asia.
The bank is also using new technology to acquire customers and better serve existing ones, deploying artificial intelligence (AI) to help it get better ideas for its advertising and reach audiences more accurately.
It has used a piece of YouTube software called Director Mix to create many different versions of video ads that are shown to people online — based on where they are, what websites they are looking at and other elements that might include the weather, to make the commercials as relevant as possible.
“We're creating thousands of different versions of these ads, where it's just changing based on a small nuance and it allows us to put those ads to serve (online),” Citi’s Global Consumer Chief Marketing Officer (CMO) Jennifer Breithaupt told CNBC.
Online video ads tend only to be watched for a matter of seconds, but it is well-known that people will stay longer if the content is relevant to them. “Completion rates are just so much higher because it's contextually relevant to where you are,” Breithaupt said, adding that recall rates are also higher — people later remember that the ad they’ve seen is for Citi.