Citigroup Aims to Double Commercial Banking Revenue by Targeting Small Businesses

Core Insights - Citigroup is shifting its focus to small- to medium-sized businesses (SMBs) to increase revenue, targeting companies with annual revenues between $10 million and $3 billion [1][2] - The bank has established commercial lending units for SMBs in multiple countries, including Canada, France, Germany, Ireland, Japan, and Switzerland [1] - Citigroup aims to double its commercial banking revenue, currently at $3 billion, by expanding its services to SMBs [2] Group 1 - Citigroup's reorganization is designed to enhance cross-selling capabilities and capitalize on the challenges faced by regional banks due to high interest rates and commercial property losses [2] - The bank's investment in FinTech company Numerated aims to leverage machine learning for better loan data management [1][2] - The global head of commercial banking at Citigroup indicated that minimal investment could yield incremental revenue by offering mid-sized clients similar services as large corporations [2] Group 2 - Small businesses have historically faced difficulties in obtaining financing, with the Small Business Administration (SBA) reporting $8 billion in potential loans went unused in the previous fiscal year [3] - The SBA has the authority to guarantee up to $34 billion in loans annually, but only $26 billion were issued [3] - Concerns about loan costs persist among one-third of surveyed Main Street business owners for 2024 [3]