Citizens Targets $50M Market
Bank invests in products and tech to serve $5-50M revenue businesses, a gap others are missing
Citizens is targeting the gap between consumer and commercial banking by serving clients across business, private banking, and wealth in a unified way. The bank has made investments in products, technology, and geography to accelerate growth in this area, with a focus on the lower middle market to upper business banking segment.
The business banking division at Citizens serves customers with annual revenue from startup to $50 million. This division makes connections to Citizens' commercial banking division, which can serve clients' capital markets needs, for example. The bank's president of business banking, Mark Valentino, said that the division has made recent investments aimed at accelerating growth.
Citizens has added bankers in New York City, south Florida, and is targeting northern and southern California. The bank has a small branch network in south Florida and sees growth potential in the region. The addition of bankers in these areas is part of the bank's effort to capitalize on the growth potential in the lower middle market to upper business banking segment.
The bank is targeting business clients with $5 million to $50 million in annual revenue. According to Valentino, the industry is not focusing on this customer base, or at least not doing it well. Citizens executives believe that serving customers in more than one aspect of their life is a key part of the bank's growth aim.
## Why it matters Citizens' strategy to serve clients across business, private banking, and wealth in a unified way is significant because it addresses a gap in the market. The bank's focus on the lower middle market to upper business banking segment could provide opportunities for growth, particularly in regions where other banks have withdrawn or been acquired. With $233.8 billion in assets, Citizens is well-positioned to make a significant impact in this area.
## What happens next As Citizens continues to invest in products, technology, and geography, the bank is likely to expand its reach in targeted geographic areas, including New York, Florida, and California. The addition of bankers in these areas will help the bank to better serve business clients and capitalize on the growth potential in the lower middle market to upper business banking segment. With its unified approach to serving clients, Citizens is poised to make a significant impact in the industry.
