Also, e-Citi will roll out banking, brokerage, and insurance products for the Web in the coming months. There's a reason for the hurried pace. Horowitz acknowledges that smaller, faster-moving Internet banking companies, such as Security First Network Bank and Scotiabank, are emerging to compete with established banks by offering more aggressive online services. Citigroup is looking for its own competitive advantages on the Web, such as the ability to tailor the company's financial-services products to specific demographic groups. Citigroup is prepared to go a long way to grab customers.
Analysts say it's a risky trade-off.
Still, it's a strategy Citigroup must follow to be successful on the Web, Doyle says.