CitiFinancial, the consumer finance arm of Citigroup, is set to reorganize its North American business and plans to re-name its franchise. As part of the plan, CitiFinancial has decided to separate its US business into two segments: Full Services Branches unit and a Servicing unit, which will handle only existing loans.
The strategy is expected to enable CitiFinancial to expand lending in line with consumer demand and preserve its ability to help future borrowers.
The Full Services Branches will continue to focus on originations and servicing of personal, refinance, and home equity loans through a streamlined branch network that provides the breadth of service CitiFinancial customers have come to expect.
The Servicing unit will focus on providing specialized service to customers who would benefit from expanded support including loan modifications or restructurings.
CitiFinancial said that Servicing model will include larger offices with extended hours of operation and expanded management support and will be located in the communities they currently serve.
CitiFinancial also announced its intention to re-name its business after the segmentation is complete.
Vikram Pandit, CEO of Citi, said: “CitiFinancial is an important business and a great franchise with a long history of keeping credit flowing in America. We believe this segmentation will allow the community-based lender to better serve its customers across the US.”
Mary McDowell, CEO of CitiFinancial, said: “This reorganization will enable CitiFinancial to continue lending to US consumers while better serving its customers in need. In addition, through CitiFinancial Servicing, we’ll be better equipped to help customers stay current on their loans and achieve their financial goals in today’s challenging economic environment.”