Citigroup named David Chubak, 39, to head the retail banking division in the U.S., the company announced on Tuesday (Jan. 7).
Chubak has been with Citi since leaving McKinsey in 2013 and will report directly to Anand Selva, head of the U.S. consumer banking division, according to a memo obtained by CNBC.
Having held numerous strategic positions at the third-largest bank in the U.S., Chubak will head all retail sectors — branches, mortgages, wealth, risk management and small business, according to the memo.
This move marks the first big change that new global consumer bank president Jane Fraser — also formerly of McKinsey — has made since Stephen Bird resigned as chief of retail in October. In 2015, Fraser held a position similar to the one that Chubak is assuming now, a sign that he is on a growth path at the New York-based financial institution.
“David will be responsible for continuing to transform and grow these businesses while delivering best-in-class customer experiences,” according to the memo sent by Fraser and Selva. “He will focus on driving scale in retail, expanding wealth management, rethinking our branch network, accelerating digital capabilities, strengthening customer value propositions, and charting the path to growth in mortgage and small business.”
The change comes at a demanding crossroads for Citigroup and CEO Michael Corbat as it seeks to tap digital avenues to become more competitive and grow deposits. The bank is feeling the pain of having a costlier funding source and smaller branch network than competitors J.P. Morgan Chase and Bank of America.
Citi is hoping to build on the momentum that started last year when it overhauled its product offerings and set about to expand its deposit base.
Citigroup serves more than 110 million clients in 19 countries, its website said. It has an overall presence in 98 countries.
The launch of Spring by Citi, Citi’s Treasury and Trade Solutions (TTS), is increasingly incorporating the consumer payments experience into its broader B2B treasury management and transaction banking offering as it moves to support its institutional clients in their own journeys to meeting customer payment demands.