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1. Introduction

1.1 Objective:
The main purpose of the study was to compare the theoretical knowledge with practical scenario. It was to help us to
understand the basics of Operational design and process analysis as well as apply those concepts in reality. To
gather a more hands-on experience, we conducted process analysis on the process followed by Citibank, N.A. to
provide pay link service to its customers.
1.2 Goal of the Project:
The goal of this project was to analyze the efficiency of the current process and to recommend a suitable process to
give a smother service to the clients.
1.3 Scope of the Study:
Here for the ease of understanding we have taken only Gulshan Branch, though the same process is followed by
Dhanmondi and Chittagong Branch.
1.4 Methodology:
This project is mainly based on primary data collected from the work life experience in Citi N.A. Besides this, we have
taken interview of some managers and clients of the bank to get better knowledge. We also took the assistance of
Citiservice and Payment unit of the bank. We used textbooks for the formulas of process analysis.
1.5 Limitations:
The following were some of the constraints that we faced while completing the report:
 The main obstacle of the report is time bindings.
 Due to some restrictions in the bank some data could not be shared in the paper which would have given a
detail light on the process.
2. Overview of Citi and Citibank

Citi is the preeminent global financial services company with some 200 million-customer accounts in more than 100
countries. It provides consumers, corporations, governments and institutions with a broad range of financial products
and services, including consumer banking and credit, corporate and investment banking, insurance, securities
brokerage, and asset management.
Early Days of Citibank
Citibank was formerly (1967–74) known as First National City Corporation, American holding company
incorporated in 1967, with the City Bank of New York, National Association (a bank tracing to 1812), as its principal
subsidiary. The latter's name changed successively to First National City Bank in 1968 and to Citibank, N.A. (i.e.,
National Association), in 1976. Citicorp was the holding company's popular and trade name from its inception but
became the legal name only in 1974.
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 such cities as New York. Thus on June 16, 1812, some of the 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 it
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
California-based bank), and in 1955 it merged with the First National Bank of the City of New York (founded 1863).
Upon this latter merger, the consolidated company took the name of First National City Bank of New York. In 1967
the holding company Citicorp was created to hold the stock of the First National City Bank of New
York—renamed City Bank of New York—and to hold the stock of subsidiaries to be newly acquired or
split off from the bank, such as a finance company, a traveler's check company, and other related financial
operations.
The holding company setup improved the company's long-range conglomerating possibilities. In the late 1970s
Citicorp pioneered the installation of a network of automated teller machines throughout its branch offices. The
company secured an important share of the American credit card business by purchasing Carte Blanche Corporation
in 1978 and Diners Club, Inc., in 1981. In 1982 and 1983 Citicorp made three major acquisitions—Fidelity
Savings and Loan Association of San Francisco, First Federal Savings and Loan of Chicago, and New Biscayne Savings
and Loan Association of Florida—which increased its assets by more than $8,500,000,000 and expanded its
interstate banking operations significantly. By the late 20th century Citicorp was the largest American bank and one
of the largest financial companies in the world, with about 3,000 branch offices worldwide.
Creation of Citi
Amid a global financial crisis and intense efforts to prepare for the introduction of the European Union common
currency (the euro) and the computer problem caused by the year 2000 date change, industry wide consolidation
both within and across national borders continued to reshape the financial services landscape in late 1990s. At the
same time efforts were going on in the United States and other countries to modernize laws governing the affiliation
of banks with other financial institutions.
In response to these pressures, consolidation within the American banking industry continued apace with the merger
of major institutions. The merger of Citicorp and the Travelers Group--creating Citi--combined for the first time in the
U.S. a major banking organization and an insurance company. Indicative of the extent to which the Depression-era
barriers against combining banking and securities activities had been eroded by regulatory interpretations made by
the Federal Reserve System during the past 10 years, the Citicorp-Travelers merger included one of the largest
American investment banks, Salomon Smith Barney Inc. Without passage of financial modernization legislation, under
existing law Citiwould have to divest its insurance-underwriting activities within two years of the merger (under
certain circumstances this divestiture period could be extended for up to an additional three years). Interestingly, no
such requirement applies to its securities business.
When the proposed merger of the Travelers Group financial giant and banking's Citicorp was announced in April
1998, the news stunned the financial industry; involving some $76 billion in stock, it was at the time the largest
merger in history. For Wall Street's latest superstar, Travelers chairman and CEO Sanford "Sandy" Weill,
not only was the merger a step closer to the creation of the huge international diversified financial services institution
he had been dreaming about for over a decade, but its audacity and risk was in step with Weill's reputation as a
corporate visionary who was as savvy as he was fearless2.
On November 12 U.S. Pres. Bill Clinton signed the Gramm-Leach-Bliley Act, marking the end of a two-decade
struggle to tear down Depression-era barriers between banking, securities, and insurance in the U.S. Although the
barriers had already been eroded considerably over the previous 10 years through bank securities affiliates and the
creation of Citi in 1998, passage of comprehensive financial modernization legislation was widely expected to lead to
further consolidation of financial services in the U.S., particularly mergers involving commercial banks and insurance
firms.

2.1. Overview of Citibank N.A., Bangladesh

Citibank N.A. commenced in Bangladesh during 1987, with the opening of a representative office. Leveraging on the
strengths with respect to global network, expertise in financial services and technology based delivery capabilities,
Citibank N.A. Bangladesh have been able to establish as one of the largest overseas correspondents for the
nationalized banks in Bangladesh. The bank has also been a major player in trade finance and acted as financial
adviser to key national infrastructure projects.
Citibank N.A. opened its first full-service branch in Dhaka, the capital of Bangladesh, on 24th June 1995. With this
new branch, the bank aims to bring their customers the highest standard of international financial services, backed
by sophisticated technology and innovative products and services, customized to suit the corporate needs. In course
of time, the bank expanded is activities as well as workforce.
A new full service branch was opened in Chittagong, the commercial capital of Bangladesh, on 18th June 2000. The
branch is now operating business in a commercial hub of the city side-by-side most of its other counterparts.
Citibank N.A. Bangladesh as a branch of Citibank:
Citibank is virtually present throughout the entire globe with branches in more than 100 countries. For ease of
operation Citibank broadly divides its market into two geographic segments. GRB (Global Relationship Banking)
includes all the markets in the developed world, while EM (Emerging Market) indicates to markets in the developing
world. Naturally Bangladesh is one of 74 countries that fall under the head of Emerging Markets.
Emerging Market is again divided into three geographic segments: Latin America, Asia Pacific and CEEMA (Central
and Eastern Europe, Middle East and Africa). For various historical reasons Middle East and South Asia was a single
“cluster” within the CEEMA group and was known as MESA. However only a few years back (in 1997 -
98) South Asia was given the status of a separate cluster still within CEEMA. This cluster includes India, Bangladesh,
Srilanka and Nepal.
So, the position of Bangladesh in Citibank’s global market can be shown as:
Citibank N.A.’s Global Market
Emerging Market (74 Countries)
CEEMA (38 Countries)
South Asian Cluster (4 Countries)
Bangladesh
Organizational Structure
The formal Organogram of Citibank, N.A. Bangladesh has been presented in the Appendix II of this report. However,
this organogram does not completely reflect the principle on which the structure is based. Before we go into the
details of department-by-department description of the organization, it would helpful to get an overview of how
these departments are interlinked in terms of dealing with the customers.
The entire organization can be viewed as a three-tier entity encompassing the customers:

Three-Tier View of the Organizational Structure of Citibank N.A. Bangladesh

In the first tier, closest to the customer, there are the Relationship Managers (RMs). They specialize in specific
customers or groups of customers, and they are the primary point of contact between the bank and the customer.
They usually belong to either of the two departments, which specialize in managing relationships: the Corporate
Banking Group (CBG) and the Financial Institutions (FI). The Treasury department also maintains direct relationship
with some specialized customers of treasury products.

In the second tier, there are product managers. They also interact with the customers, but in doing so, the closely
coordinate with the relationship managers. They may directly interact with customers who are not designated to any
specific RM or may interact with a different level of managers when the customer is a corporate house. Often the
RMs and the Product Managers pay joint visits to customers or make joint presentations. While the RMs are
specialized in dealing with specific customers and know best what the needs of the customers are, the product
managers specialize in specific products and services and better know the technical details of each products. Mostly
the product managers belong to departments like Cash Management and Treasury who deal with products of
different kinds. A few product managers also work in the operations department.

It should be mentioned that for core products like corporate loans or corresponding banking services, there are no
separate product managers, as the RMs themselves specialize in the...