What is the impact of the Internet on the competitive landscape of corporate banking? Please provide five (5) major competitive impacts of internet banking. Please provide space between each answer.

(do not use the porter's five forces)

Impact #1 (80-100 words)

Impact #2 (80-100 words)

Impact #3 (80-100 words)

Impact #4 (80-100 words)

Impact #5 (80-100 words)

rP os t HKU797 ALI FARHOOMAND op yo CITIBANK'S E-BUSINESS STRATEGY FOR GLOBAL CORPORATE BANKING (2008) In 2000, in response to intense competition and the dotcom boom, Citibank made a serious push to deliver integrated solutions that enabled its corporate customers to conduct business online. Citibank's e-business strategy (\"connect, transform and extend\") was to web-enable its core services, develop integrated solutions and reach new markets. Citibank aimed to build a single web-enabled platform for all customers with similar needs. Following the success of CitiDirect, a corporate banking platform which was developed in 2000 and strengthened in 2003, Citibank started to develop TreasuryVision as a replacement to suit the changing marketplace. tC When developing its e-business, Citibank faced constant challenges in serving corporate customers with diverse needs. Sophisticated clients, such as multinational companies (\"MNCs\"), required custom-built host-to-host product interfaces. Other customers, such as small- and medium-sized enterprises (\"SMEs\"), were more conservative and were not ready for web-based solutions. Meanwhile, Citibank was under increasing pressure to cut costs and improve efficiency. Especially following the outcry over subprime mortgages in October 2007, Citibank had to face a very tough business environment. No How could Citibank build a flexible and agile e-business product that could capture its clients' total cash-management and trade-service needs? Meanwhile, how could Citibank use its e-business strategy to lower costs and improve efficiency? Given Citibank's enormous global reach, how could it integrate internet initiatives into its overall strategy and create sustainable competitive advantages? Global Corporate Banking at Citibank Citibank was incorporated in 1812 as City Bank of New York. The bank experienced several mergers after its inception. The name Citibank N.A. was adopted in 1976. Following its merger with Travellers Group in 1998, the holding company changed its name to Citigroup Do Dr Minyi Huang prepared this updated version of the case with the same title published in 2001 under the supervision of Professor Julie H. Yu and Professor Ali Farhoomand for class discussion. This case is not intended to show effective or ineffective handling of decision or business processes. 2008 by The Asia Case Research Centre, The University of Hong Kong. No part of this publication may be reproduced or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwise (including the internet)without the permission of The University of Hong Kong. Ref. 08/402C 1 This document is authorized for use only by Sunil Joshi at Indus World School of Business until February 2014. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860. 08/402C Citibank's e-Business Strategy for Global Corporate Banking (2008) rP os t Inc (\"Citigroup\"). In 2006, Citigroup employed 325,000 staff serving 200 million customers in over 100 countries and had an information technology (\"IT\") expenditure of US$3,762 million. Starting in the 1990s, Citibank's corporate banking activities evolved from a highly decentralised set of operations to becoming more centralised, with much attention focused on 1,400 large global corporations and institutional investors. 1 Starting in the mid-1990s, Citibank transformed from a geography-based organisation into a multi-dimensional one with the geography factor significantly de-emphasised. Customer needs became its first priority, while product types were given second priority.2 op yo By most measures, Citibank was the most global US bank. In 1997, Citibank became one of the most profitable banks in the US, with the annual profit of US$3.59 billion, of which global corporate banking accounted for US$2.56 billion. Citibank's global corporate banking business continued its healthy growth. The bank's Cash and Trade service was a core product offered to corporate customers. By 2000, Citibank's Cash and Trade division had already exceeded US$1 trillion in financial transactions for customers and counterparts around the world daily. These included foreign exchange transactions, equities, deposits, settlement of trade transactions and payment of insurance policies. In 2006, the income from its global corporate and investment banking activities reached US$7.127 billion, a 3% increase from US$6.895 billion in 2005.3 Citibank developed a strategy for its corporate banking operations, and its target corporate client base included MNCs, financial institutions, government sectors, local corporations and SMEs. Citibank differentiated itself from other banks through customer service by offering telephone hotlines, relationship managers who understood clients' needs and product consultants who provided service expertise. Most importantly, Citibank made continuous investment in technology to support both the front-end and back-end electronic banking systems. No tC For corporate customers, Citibank provided a full range of financial services, except for investment banking services in the US. The core products were broadly grouped into three categories:4 Transaction services, such as cash management, trade and custody services Corporate finance services, such as working-capital finance, trade finance and asset-based financing Treasury market services, such as hedging and foreign exchange. Citibank aimed to make the organisation accessible to its corporate customers by using its unified platform and group-wide expertise. It used a team coverage approach, which allowed Citigroup to work closely with each function in a client's organisation. Cash Management5 The main focus of cash management was to find ways to move money around in the most efficient manner possible in order to meet customers' requirements. Two crucial aspects of a Do 1 Baron, D. and Besanko, D. (2001) \"Strategy, Organization and Incentives: Global Corporate Banking at Citibank\