The fintech giant has reportedly chosen five investment banks to serve as advisors for its $1 billion (about INR 8,424.7 crore) initial public offering (IPO), months after it was revealed that Pine Labs has been considering going public. According to a media report, which cited people familiar with the situation, Pine Labs has selected Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies to manage its initial public offering (IPO) mandate, which is scheduled to launch in the first half of FY26.
According to the report, as part of the pre-IPO investment, a secondary offer worth $100 million (about INR 842.5 crore) will be made possible, allowing share transfers between new venture capital companies and current investors. The company is expected to seek a valuation of over $6 billion for the initial public offering (IPO), according to reports that first surfaced in June about its plans to go public.
Business Dynamics of Pine Labs
Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs offers a variety of payment solutions to businesses, such as point-of-sale devices and payment systems. Additionally, it provides businesses with cashback, rewards, and pay-later options. Investors including Peak XV Partners, Actis Capital, Temasek, PayPal, Mastercard, Alpha Wave Global, Chimaera Capital, and State Bank of India have contributed a total of around $1.6 billion to the fintech company’s investment to date.
In August, Pine Labs obtained the first set of licences from the National Company Law Tribunal (NCLT) to combine its Singapore business with its Indian subsidiary, one of several steps the fintech startup took to move its headquarters to India.
IPO Scenario in India
Aforementioned development occurs at a time when at least ten companies are making their debut this year, and entrepreneurs from a variety of industries are eager to get on the exchanges. In the meantime, a long line of startups is expected to go public next year.
Axis Capital, Morgan Stanley, JP Morgan, Citigroup, and Bank of America are among the five banks that have joined SoftBank-backed B2B marketplace OfBusiness for its $1 billion initial public offering (IPO), which is anticipated to take place next year. About two weeks ago, the manufacturer of smartwatches and audio goods, boAt, hired ICICI Securities, Goldman Sachs, and Nomura as bankers for its $300–500 million initial public offering (IPO) that will take place next year.
With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.
180 currencies are recognized as legal tender around the world today. Foreign exchange is the process of changing one currency into another for various reasons, usually for commerce, trading, or tourism. It is one of the most actively traded markets in the world, with an average daily trading volume of $6.6 trillion.
The vast majority of currency conversion is undertaken to earn a profit. A foreign exchange company also known as a foreign exchange broker or simply forex broker is a company that offers currency exchange and international payments to private individuals and companies.
The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. The conversion rates for almost all currencies are constantly floating as they are driven by the supply and demand market forces.
Factors Affecting Currency Value
The value of any particular currency is determined by market forces related to trade, investment, tourism, and geopolitical risk.
Foreign exchange is handled globally between banks and all transactions fall under the auspice of the Bank for International Settlements (BIS).
The factors include various economic, political, and even psychological conditions.
The economic factors include a government’s economic policies, trade balances, inflation, and economic growth outlook.
Another important factor of demand occurs when a foreign company seeks to do business with another in a specific country.
Citigroup Incorporation is also known as Citi is a financial service corporation started in 1998. It is an American-based multinational company focusing on financial services and is headquartered in New York. Citigroup is given the tag of being the third largest banking institution group in the US and also forms an integral part of the big four banking institutions of the US.
The formation of Citigroup Incorporation was quite dramatic with the merger of two big firms named Citicorp and Travelers Group. Citicorp was a banking giant whereas Travelers Group was a big financial corporation. Citigroup mainly focuses on providing the best financial services to its clients.
The services given by Citigroup, in general, include facilities like providing financial services to different people falling in the organization of government, corporate, institution, etc. They also strive to provide simple yet effective financial solutions to their clients.
Pros of Citigroup Inc forex:
Includes more than one brand for its clients to select from for forex trading.
The platform allows international trading of foreign currency with its wide working area.
Allows forex trading at $0 commission to its clients.
2. HSBC Holdings Plc
Founded: 1865
Headquarters: London
HSBC website
HSBC is acknowledged as the largest bank in Europe initiated in the year 1865. It is a multinational universal bank along with a financial holding British company. It is headquartered in London. The letters HSBC belong to the initials of its origin by the Hongkong and Shanghai Banking Corporation.
HSBC is one of the biggest banking service-providing companies with more than 64 countries covered and around 40 million customers served. The company mainly focuses on providing banking and financial services along with inventing new methods to make banking easy. It also allows different financial services like trading, private and investment banking, capital market, etc.
Pros of HSBC Holdings Plc forex:
Direct access to all facilities is provided rather than the involvement of any third-party service providers.
The process is made transparent and clear by the platform for easy use.
Can be accessed from multiple regions.
3. State Street Corporation
Founded: 1792
Headquarters: Boston
State Street Corporation website
State Street Corporation is counted among the oldest operating banking companies in the US. It was initiated in the year 1792 and is headquartered in Boston. State Street Corporation is counted as a financial service provider and a bank holding company.
State Street Corporation is ranked 15th among the largest banks in the United States. The firm is responsible for providing services like cash management, services revolving around international exchanges, financial assets management, and also provides investment advisory services.
Pros of State Street Corporation forex:
It provides fully automatic service that is 100% transparent for its customers.
The service is available in almost all major regions across the world.
Initiated in the year 1869, Deutsche Bank AG is a Germany-based financial service providing firm. It has its headquarters located in Frankfurt, Germany. The firm mainly works in the field of providing investment banking services along with other financial services to its clients worldwide.
Deutsche Bank AG is considered the largest financial service-providing firm in Germany and is also included in the list of largest banks in the world. The firm focuses on four different aspects of banking services including the investment bank, corporate bank, private bank, and asset management.
The firm helps government and private organizations along with small and medium-sized businesses by providing them with the needed services in the banking field to provide ethical and sustainable services to all.
Pros of Deutsche Bank AG forex:
The forex process is completely seamless and transparent with quick actions.
Provides competitive rates on the foreign exchange currency.
Provides swift transfer of funds through its platform.
5. JPMorgan Chase & Co.
Founded: 2000
Headquarters: New York City
JPMorgan Chase & Co. website
Initiated in the year 2000, JPMorgan Chase & Co. is the largest multi-financial bank in the world at the present year. JPMorgan Chase & Co. is an America-based multinational company focused on providing services related to investment banking services and financial banking services with its headquarters located in New York City.
JPMorgan Chase & Co. forms an integral part of the large four banks of America and is currently in the fifth position of the largest banks in the world for its assets. The firm mainly focuses on providing services like asset management, investment management, private equity, etc. The services provided by them are mainly targeted at individuals and businesses.
Pros of JPMorgan Chase & Co. Forex:
Services are provided worldwide.
Has different customizable options for easy understanding of the tools and news.
Provides access to the largest committee of currency pairs.
6. Barclays PLC
Founded: 1960
Headquarters: London
Barclays PLC website
Barclays PLC was introduced in the year 1960 as the universal multinational bank based in Germany. It has its headquarters located in London and is known to provide services worldwide.
Barclays is operated as two different units termed Barclays UK and Barclays international. The firm mainly focuses on providing services like retail banking, credit services, investment banking, wealth management, etc.
Pros of Barclays PLC forex:
Provides detailed market insight to their clients.
Has an excellent customer support system.
Includes different tools for foreign exchange risk management.
7. XTX Markets Limited
Founded: 2015
Headquarters: London
XTX Markets Limited website
XTX Markets Limited was introduced in 2015 as an algorithmic trading company with its headquarters located in London. XTX Markets Limited is a non-banking firm that still comes under the list of top liquidity providers for the foreign exchange market.
The services provided by XTX Markets Limited mainly focus on equities, foreign exchange, commodities, fixed income, derivatives, etc.
Pros of XTX Markets Limited forex:
The platform is multilingual and supports 26+ languages.
Provides fair and efficient services.
The platform is counted amongst the top 3 forex liquidity providers.
8. Goldman Sachs Group, Inc.
Founded: 1869
Headquarters: New York City
Goldman Sachs Group, Inc. website
Founded in 1869, Goldman Sachs is an America-based investment and financial service providing the firm with its headquarters located in New York City. The firm is quite famous for its investment in budding startups.
Goldman Sachs Group, Inc. comes second in the list of investment banks across the world due to its revenue. And is also included in the list of Fortune 500. The firm mainly provides services like asset management, commercial banking, investment banking, etc.
Pros of Goldman Sachs Group, Inc. forex:
Has a range of tools that helps its clients with a better estimation of trading platforms.
Has a demo account for the clients to work and experience the service of Goldman Sachs to try before.
They serve worldwide.
Currency composition of world FX
9. Standard Chartered Group
Founded: 1853
Headquarters: London
Standard Chartered Group website
Standard Chartered Group was established in 1853 with its headquarters in London. It is a universal bank known to operate a large chain of units. Standard Chartered is a Britain-based multinational company providing financial and investment services.
Standard Chartered Group is known to own a network of more than 1200 branches and outlets in different parts of the world. They cover more than 70+ countries. The firm mainly works in the field of providing services to corporate and institutional services only.
Pros of Standard Chartered Group forex:
They provide excellent guidance to their clients for a better understanding of the terms and strategies.
The platform is widely spread across the globe and can give access to multiple currencies.
Their help support is quite reliable.
10. UBS AG
Founded: 1998
Headquarters: Zurich
UBS AG website
Introduced in 1998, UBS AG is the largest Swiss banking instruction, also co-headquartered in Zurich and Basel. It is a multinational and Switzerland-based financial service providing company also focusing on investment banking.
UBS AG is the third largest bank in Europe. It focuses on providing services to private and government organizations. The services provided by UBS AG fall in the category of global wealth management, personal and corporate banking, investment banking, etc.
Pros of UBS AG forex:
They provide a worldwide network with a global franchising platform to sort out their client’s needs.
The platform keeps on updating from time to time to meet up the demands of the real world.
They provide excellent customer support along with the required guide to the platform.
11. BNP Paribas Group
Founded: 2000
Headquarters: France
BNP Paribas Group website
Founded in 2000, BNP Paribas Group was formed by the merger of two different firms named National Bank of Paris and Paribas. The initials BNP came from the National Bank of Paris and Paribas came from other parts of the merger. It is a French company with its headquarters in France.
BNP Paribas is counted among the top 10 largest banks in the world and is placed second as the largest bank group in Europe. It provides services focused on the category of commercial, personal banking, and services. It also provides services for corporate and institutional banking. It also works to provide investment and financial services.
Allows access to more than 130 currencies for the FX.
Provides optimal tools to make the process more efficient.
12. Royal Bank of Scotland Plc
Founded: 1724
Headquarters: Edinburgh
Royal Bank of Scotland Plc website
Introduced in 1724, Royal Bank of Scotland Plc is a major player in the field of the retail and commercial banking sector in Scotland. Its headquarters are in Edinburgh. Royal Bank owns more than 700 branches across the country of Scotland and a few branches spread out in the major towns and cities covering England and Wales.
Royal Bank of Scotland Plc works to provide services to trusts, charities, private companies, etc. Its services include online banking, investments, saving accounts, fund transfer, etc. The firm operates by the means of a large networked server including different branches, outlets, online communication, etc.
Pros of Royal Bank of Scotland Plc forex:
They provide services concerning more than 60+ currencies from across the world.
Customized solutions are provided by them to fulfill the needs of their clients.
Provides help with advanced tools to manage the account and get more insight to risk management terms.
13. Saxo Bank
Founded: 1992
Headquarters: Denmark
Saxo Bank website
Introduced as a brokerage firm in 1992, now called Saxo Bank is a Danish firm giving out services like investment and online trading. It is headquartered in Denmark and the firm operates as an online broker platform.
Saxo Bank is in connection with more than 180 countries and provides services like investment banking solutions, online platforms for trading and investment, etc. The firm is widely spread in different parts of the world.
Pros of Saxo Bank forex:
Saxo Bank is acknowledged as the best forex broker and has an online trading platform from multiple sources.
Has great tools to help their customers get their needs completed.
Multiple currencies are supported by the platform.
Conclusion
The word “Forex” stands for the combination of two words foreign exchange. Forex means changing the currency of one country into another. This method requires different terms and rules to follow than the normal currency exchange. Foreign Exchange of currencies is done because of many reasons but not many platforms are trusted for the process. The above article contains a list of foreign exchange companies with their features.
FAQs
What are the top 10 currencies in the world?
The top 10 currencies in the world are Kuwaiti Dinar, Bahrain Dinar, Oman Riyal, Jordan Dinar, Pound Sterling, Cayman Island Dollar, European Euro, Swiss Franc, US Dollar, and Canadian Dollar.
What is the foreign exchange market?
A foreign exchange market is a trading place where the currencies of multiple countries are bought and sold at different rates just like the stock market.
Which currency has the lowest value?
The least valued currency can keep changing concerning changes in currency value. However, at present time Iranian Rial is considered the lowest valued currency.
What is forex earning?
Forex earning means the profit earned by selling goods and products in the global marketplace. It can also mean the simple exchange of only currencies in the global market as per the demand and supply rule.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.
JPMorgan(John Pierpont Morgan) Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. JPMorgan Chase is ranked by S&P Global as the largest bank in the United States and the seventh largest bank in the world by total assets, with total assets of US$3.213 trillion.
It is also the world’s most valuable bank by market capitalization. As a “Bulge Bracket” bank, it is a major provider of various investment banking and financial services. It is one of America’s Big Four banks, along with Bank of America, Citigroup, and Wells Fargo.
JPMorgan Chase & Co. is a financial holding company. It provides financial and investment banking services. The firm offers a range of investment banking products and services in all capital markets, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market making in cash securities and derivative instruments, and brokerage and research.
It operates through the following segments: Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking and Asset and Wealth Management.
The Consumer and Community Banking segment serves consumers and businesses through personal service at bank branches and through automated teller machine, online, mobile, and telephone banking. The Corporate and Investment Bank segment offers a suite of investment banking, market-making, prime brokerage, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, government and municipal entities.
The Commercial Banking segment delivers services to the U.S. and its multinational clients, including corporations, municipalities, financial institutions, and non-profit entities. It also provides financing to real estate investors and owners as well as financial solutions, including lending, treasury services, investment banking, and asset management. The Asset and Wealth Management segment provides asset and wealth management services.
JPMorgan – Logo and its Meaning
Logo of JPMorgan Chase & Co.
The geometry of the emblem and its colours stood for confidence, loyalty, professionalism, and unity, and showed the bank as a strong financial organization with its customers as the main value.
JPMorgan – Founder and History
JPMorgan Chase, in its current form, has its roots in more than 1,200 predecessor banks, including major heritage firms JP Morgan, Chase Manhattan, Chemical Bank, Manufacturers Hanover, Bank One, First Chicago, and National Bank of Detroit. These entities all played a significant role in the growth of the US and global economies. The earliest of the Company’s predecessor companies was The Bank of the Manhattan Company, which was established in 1799 by Aaron Burr as only the second commercial bank in the US.
JPMorgan Chase is built upon numerous mergers and acquisitions. Arguably, the most significant of these was the 2000 merger between JP Morgan and Company and The Chase Manhattan Corporation, which effectively combined four of the largest and oldest banking institutions in New York City – JP Morgan, Chase Bank, Chemical Bank, and Manufacturers Hanover – to form JP Morgan Chase and Company.
JPMorgan is now one of the largest banking institutions in the world. It is ranked 23rd in the Fortune 500 list and 5th in the Forbes 2000 list. The Company trades its shares on the New York Stock Exchange and has a current market capitalization of $243.59 billion.
JPMorgan – Mission
JP Morgan’s mission statement says, “JPMorgan provides a range of banking and financial services to consumer, corporations and public institutions, with the aim of enhancing their financial wellbeing and helping to effectively manage their finances.”
JPMorgan – Business Model
JPMorgan Chase organizes its activities into core major reportable business segments
Consumer and Community Banking, which provides consumers and businesses with consumer and community banking services – such as deposit, lending and investment products – through personal service at bank branches and through automated teller machines, online, mobile and telephone banking;
Corporate and Investment Bank, which provides of banking and markets and investor services, including a suite of investment banking, market-making, prime brokerage, and treasury and securities products and services, to corporations and institutions worldwide;
Commercial Banking, which provides delivers industry knowledge, expertise, and advisory services to commercial clients, as well as financing to real estate investors and owners; and
Asset Management, which provides investment advisory and wealth management services.
JPMorgan Chase also operates a Corporate segment, which comprises the activities of corporate staff units.
JPMorgan Chase generates revenue through the provision of various banking and financial services and products. Revenue is derived principally through fees and commissions imposed upon customers in relation to the Company’s services, including advisory, investment banking, management, and underwriting fees.
The Company’s largest portion of revenue was derived from asset management, administration, and commissions, which amounted to $15.51 billion for the year.
JPMorgan Chase revenue for the quarter ending September 30, 2020 was $30.834B, a 14.79% decline year-over-year.
Year
Amount
Percentage Change from Last Year
2019
$142.422B
+9.5%
2018
$130.07B
+13.52%
2017
$114.579B
7.7%
JPMorgan – Investments
JP Morgan Chase has made 144 investments. Their most recent investment was on Nov 9, 2020, when NovoCure raised $150M.
Date
Organization Name
Round
Amount
Nov 9, 2020
NovoCure
Post IPO Debt
$150M
Jul 28, 2020
Pharmapacks
Private Equity Round
$150M
Jul 18, 2020
Contemporary Amperex Technology
Post IPO Equity
CN¥19.7B
Jun 25, 2020
Capital Markets Gateway
Series B
$25M
Jun 22, 2020
Cedar
Debt Financing
$25M
Jun 4, 2020
Cloud9 Technologies
Series B
$17.5M
Mar 23, 2020
iCapital Network
Venture Round
$146M
Mar 3, 2020
The Joint
Post IPO Debt
$7.5M
Feb 3, 2020
Launch NY
Grant
$300K
Jan 17, 2020
Arcesium
Corporate Boy
–
JPMorgan – Acquisitions
JP Morgan Chase has acquired 10 organizations. Their most recent acquisition was InstaMed on May 17, 2019.
Acquiree Name
Date
Amount
About Acquiree
InstaMed
May 17, 2019
–
InstaMed simplifies healthcare payments for providers, payers, and consumers
WePay
Oct 17, 2017
$400M
WePay is the payments partner to the platform economy
J.P. Morgan Cazenove
Nov 19, 2009
–
J.P. Morgan Cazenove is a leading investment bank focused on mergers & acquisitions, debt and equity placements and equity research
Washington Mutual
Sep 26, 2008
–
Washington Mutual is a savings bank holding company providing consumer banking and financial services
Bear Stearns
Mar 17, 2008
–
Bear Stearns is an investment banking, securities trading and brokerage firm
Xspand
Mar 1, 2008
–
Xspand is a provider of revenue solutions that focuses on purchasing, servicing and securitizing municipal tax liens
Collegiate Funding Services
Dec 15, 2005
–
Collegiate Funding is a vertically integrated education finance company that markets, originates, finances and services education loans
Neovest Holdings
Jun 23, 2005
–
Neovest Holdings an independently operated technology company providing a comprehensive suite of global broker-neutral financial services
Bank One
Jan 15, 2004
$58B
Bank One is a Chicago-based multibank holding company providing many banking and financial services
Hambrecht & Quist
Sep 28, 1999
$1.4B
Hambrecht & Quist is an investment bank that focuses on the technology and internet sectors
JPMorgan – Competitors
The top 10 competitors in JPMorgan Chase’s competitive set are Citi, Goldman Sachs, Bank of America, Morgan Stanley, Capital One, Credit Suisse, Fidelity, Wells Fargo, American Express and HSBC.
“We do not worry about the stock price in the short run,” Dimon (CEO) said. “If you continue to build a great company, the stock price will take care of itself.”
Economic risks on the horizon – The excessive disruption in the financial markets at the end of 2018 was “a harbinger of things to come,” as investor sentiment remained precarious.
Because of divisive politics, America was unable to keep pace in a new world – The federal government was becoming less relevant to what is going on in people’s lives, Dimon said. As a result, people lost faith in their politicians’ ability to deliver on their promises and meet societal needs.
American leadership and engagement on the world stage is “indispensable” – Dimon said one of the biggest uncertainties in the world is what role America is currently playing. He said that while there are many problems with international organizations, such as the North Atlantic Treaty Organization (NATO), the World Trade Organization (WTO) and the United Nations (UN), the world is better off with these institutions, and the U.S. should engage and exercise its power and influence “cautiously and judiciously.
Regulation isn’t all bad, but too much of it isn’t good – Dimon said current “excessive” regulation has reduced growth and business formation for the company, without making the economy safer or better.
“The ease of starting a business in the United States has worsened, and both small business formation and employment growth have dropped to the lowest rates in 30 years,” Dimon wrote.
JPMorgan Chase is “all in” on the cloud and AI, but not on stock buybacks – Dimon acknowledged that he was “partially responsible” for the bank being slow to adopt the cloud, because his early thinking was that it was just another term for outsourcing. He also said the power of artificial intelligence and machine learning is “real,” and are “rapidly being deployed” across virtually every aspect of the bank’s business. Since that makes some employees redundant, the bank is looking to retrain and deploy those employees for other roles inside and outside the company.
17,000 Job Cuts- Even the country’s largest bank needs to cut back on employees. Executives said JPMorgan would eliminate about 17,000 positions over the next two years, including about 4,000 through attrition this year in its consumer bank.
13,000 to 15,000 Mortgage Cuts- Most of JPMorgan Chase’s job cuts will come through lay-offs and attrition in its mortgage operations over the next two years, as the industry moves past the worst of the foreclosure crisis and has less need for servicing employees.
100 New Branches- Even as it cuts some branches, JPMorgan Chase is expanding. The bank plans to add about 100 branches to its total over each of the next two years.
500,000 ‘Digital’ Customers- A growing number of JPMorgan Chase customers are opting for mobile and online technology over branch visits. About 500,000 bank customers per month are going digital, executives said.
New Partnership- JPMorgan used the day to announce a new partnership with Visa. Executives said the deal will allow the bank to negotiate directly with merchants over how they process Chase credit and debit cards.
JPMorgan – FAQs
What does JP Morgan do?
JPMorgan Chase & Co. is a global financial service that provides services including consumer banking, investment banking, commercial banking, and asset management for individuals, corporations, institutions, and governments globally.
Is JP Morgan and JP Morgan Chase the same?
JPMorgan Chase & Co. is the parent holding company of Chase(Commerical Bank) and JPMorgan(Investment Bank).
Is JP Morgan the largest bank?
JPMorgan Chase & co. is America’s one of the largest bank.
What is JP Morgan’s full name?
John Pierpont Morgan is JPMorgan’s full name.
How does JPMorgan make money?
The company operates through the following segments: Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking and Asset and Wealth Management.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.
Citigroup Inc. is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers. The Company services include investment banking, retail brokerage, corporate banking, and cash management products and services. Citigroup serves customers globally.
Citigroup is the third largest banking institution in the United States; alongside JPMorgan Chase, Bank of America, and Wells Fargo, it is one of the Big Four banking institutions of the United States.
Citigroup Inc. or Citi is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomerate Travellers Group in 1998; Travellers was subsequently spun off from the company in 2002. Citigroup owns Citicorp, the holding company for Citibank, as well as several international subsidiaries. Citi is incorporated in New York.
Citigroup is the third largest banking institution in the United States; alongside JPMorgan Chase, Bank of America, and Wells Fargo, it is one of the Big Four banking institutions of the United States. It is a systemically important financial institution and is on the list of systemically important banks that are commonly cited as being too big to fail. It is one of the nine global investment banks in the Bulge Bracket.
Citigroup is ranked 30th on the Fortune 500 as of 2019. Citigroup has over 200 million customer accounts and does business in more than 160 countries. It has 204,000 employees, although it had 357,000 employees before the financial crisis of 2007–2008, when it was bailed out by a massive stimulus package from the U.S. government.
Citigroup is the holding company for the following divisions: Bank Handlowy (Poland), Citibank Argentina, Citibank Australia, Citibank Bahrain, Citibank China, Citibank Europe, Citi Private Bank, Citibank (Hong Kong), Citibank India, Citigroup Global Markets Japan, Citibank Indonesia, Citibank Korea, Citibank Malaysia, Citibank Russia, Citibank Singapore, Citibank Uganda, Citibank United Arab Emirates, and Grupo Financiero Banamex.
Citigroup – Logo and its meaning
Logo of Citigroup
In 1812, City Bank of New York was organized. The name Citicorp was adopted in 1967 as an abbreviation of First National City Corporation. By then, the nickname “Citibank” already existed. In fact, it was in use since the 1860s, when it was the bank’s eight-letter wire code address.
The word “Citigroup” was reduced to “Citi”, a simpler, lighter type. The red umbrella of the old logo transformed into a red curve. The logo was developed by Paula Scher from Pentagram.
Sanford Weill (Travelers Group) and Samuel Osgood (Citicorp) are the founders of Citigroup.
Citigroup’s origins date to the early 19th century. In 1811 the U.S. Congress refused to renew the charter of the First Bank of the United States—the country’s central bank, which had branches in cities such as New York. Thus, on June 16, 1812, some First Bank’s New York shareholders and other investors secured state incorporation of the City Bank of New York, which was later established in the branch banking rooms of the old First Bank.
The bank grew as New York City became the nation’s commercial and financial capital, and in 1865 it was chartered under the National Bank Act and renamed the National City Bank of New York. In 1897, it became the first large American bank to open a foreign department and, in 1915, became America’s leading international bank upon the purchase of International Banking Corporation (founded 1902), which had 21 overseas offices in 13 countries and territories.
Other mergers and acquisitions in the United States and overseas expanded the bank. Notably, in 1931 it acquired the Bank of America, N.A. (another descendant of the First Bank of the United States and no relation to the former California-based bank founded by Amadeo Peter Giannini). In 1955, it merged with the First National Bank of the City of New York (founded 1863). Upon the latter merger, the consolidated company took the name of First National City Bank of New York.
Citigroup – Mission
Citigroup’s mission statement,”Citi’s mission is to serve as a trusted partner to our clients by responsibly providing financial services that enable growth and economic progress. Our core activities are safeguarding assets, lending money, making payments and accessing the capital markets on behalf of our clients. We have 200 years of experience helping our clients meet the world’s toughest challenges and embrace its greatest opportunities. We are Citi, the global bank – an institution connecting millions of people across hundreds of countries and cities.”
Citigroup – Business Model
Citi provides a broad range of financial and banking services that target a wide range of corporate, institutional, and individual clients around the world.
The company’s primary customer segments can be listed as follows:
General Consumers, comprising the general consumer population across the company’s numerous operating jurisdictions, to which it provides consumer banking and credit services;
High-Net Worth Individuals, comprising affluent consumers and family offices to which the company provides specialist wealth management services;
Corporations, comprising small, medium, and large business across multiple sectors, to which the company provides a range of retail banking services;
Institutions, comprising various non-governmental organizations, charities, and other institutions to which the company provides wealth management and retail banking solutions;
Government Bodies, comprising government departments, public sector entities, and other governmental institutions to which the company provides a range of banking services.
Citi serves around 2 million customers across more than 160 countries worldwide. The bulk of the company’s revenue is derived from customers in North America, with the remainder divided between Latin America, Asia, and Europe, the Middle East, and Africa.
Citigroup has made 86 investments. Their most recent investment was on Oct 15, 2020, when 4G Capital raisedKES285M.
Date
Organization Name
Round
Amount
Oct 15, 2020
4G Capital
Debt Financing
KES285M
Oct 6, 2020
AccessFintech
Series B
$20M
Oct 5, 2020
Genesis Global
Corporate Round
–
Sep 30, 2020
BioCatch
Series C
$20M
Sep 22, 2020
CloudMargin
Series B
$15M
Sep 10, 2020
Capitolis
Venture Round
$11M
Aug 19, 2020
PadSplit
Series A
$4.3M
Aug 18, 2020
Solidatus
Corporate Round
–
May 15, 2020
Spark Systems
Series B
SGD15M
Citigroup – Acquisitions
Citigroup has acquired 6 organizations. Their most recent acquisition was The BISYS Group on Aug 1, 2007.
Aquiree Name
Date
Amount
About Acquiree
The BISYS Group
Aug 1, 2007
–
The BISYS Group global outsourcing solutions firm that helped investment firms and insurance companies to more efficiently serve
Automated Trading Desk
Jul 2, 2007
$680M
Automated Trading Desk develops automated trading systems for the trading companies, buy and sell-side firms, and financial institutions
Quilter Cheviot
Dec 13, 2006
–
Quilter Cheviot operates as an independently owned discretionary investment management firms
Koram Bank
Feb 18, 2004
–
KorAm is the sixth largest commercial bank in Korea
Banamex
May 18, 2001
–
Banamex offers the best financial products and services: Credit Cards, Mortgage loans, Personal loans, exchange rate
European American Bank
Feb 13, 2001
–
European American Bank
Citigroup – Competitors
Citi‘s top competitors include State Street, BNP Paribas, Morgan Stanley, RBS, HSBC, Bank of America, Wells Fargo, JPMorgan Chase, CIT andState Bank of India.
One issue forces the bank to haemorrhage cash, the other prevents it from returning money to shareholders.
Analysts say the bank still has to get rid of dead weight on its balance sheet. That weight takes the form of underperforming, low-return businesses and Citi Holdings, the bank’s cluster of bad assets and businesses put together after the financial crisis.
The second issue with Citi analysts want to see cleaned up is the bank’s legal mess in Mexico. Few months ago, regulators accused Citi’s subsidiary, Banamex, of defrauding clients.
The New York-based bank slashed jobs across its fixed-income and stock-trading operations over the course of 2019, according to people familiar with the matter. That included at least 100 jobs in the equities unit, which would amount to almost 10% of the division’s workforce.
Citigroup – Future Plans
Citi announced its new five-year 2025 Sustainable Progress Strategy to help accelerate the transition to a low-carbon economy. This new strategy includes a $250 Billion Environmental Finance Goal to finance and facilitate climate solutions globally. This builds on Citi’s previous $100 billion goal announced in 2015 and completed last year, more than four years ahead of schedule.
This new strategy, integrated into Citi’s Environmental and Social Policy Framework, will focus on three key areas over the next five years:
Low-Carbon Transition: Citi aims to finance and facilitate an additional $250 billion in low-carbon solutions, in addition to the $164 billion the bank counted toward its $100 Billion Environmental Finance Goal (2014-2019). This new goal includes financing and facilitating activities in renewable energy, clean technology, water quality and conservation, sustainable transportation, green buildings, energy efficiency, circular economy, and sustainable agriculture and land use. Citi will continue to develop innovative financing structures and seek opportunities to scale positive impact in these areas while supporting clients across all sectors in the low-carbon transition.
Climate Risk: Measuring, managing and reducing the climate risk and impact of Citi’s client portfolio is a key aspect of a low-carbon transition. Citi has been a leader in climate assessment and disclosure in alignment with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, releasing its first TCFD report in 2018. Citi will further test the resilience of its lending portfolios to transition risks and physical risks related to climate change, and continue to disclose in line with TCFD.
Sustainable Operations: This strategy includes fourth generation operational footprint goals focused on GHG emissions, energy, water, waste reduction and sustainable building solutions. Since 2005 we have reduced 3,600 GWh of energy use and avoided 2.4 million MTCO2e, equal to the GHG emissions of over half a million cars on the road for a year (equivalency provided by EPA calculator). While climate science requires global CO2 emissions to be reduced by 45 percent by 2030, Citi is accelerating that timeline with a 45 percent reduction target in CO2 emissions by 2025. Citi expects to meet its goal of sourcing 100 percent renewable electricity to power facilities globally before the end of 2020.
Nitin Konde
