Citibank is providing Euro transfers and third party account payments with no fees to its customers.
Covering 31 European countries the Citibank initiative will get money into any bank account in Europe within 3 days. The fee free element applies to Citibank current accounts and savings accounts that use the Euro as their currency. Accounts that use a currency other than the Euro will have a charge of 2 percent levied for currency conversion.
A spokesperson from Citibank saw this new initiative as one that would speed up the whole banking process in Europe and make the transfer of money inexpensive and safe. It is expected to be especially popular with customers who have overseas properties and also those who send payments to bank accounts in different European countries.
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Citigroup, the huge financial organisation of which Citibank is a part, is being urged to break up by some union representatives.
A union president has written to the Citibank Chairman asking him to give some value back to the shareholders by breaking up the business into smaller parts. He does not want to see the supermarket approach of offering everything continued, preferring a more targeted approach.
Shares in Citigroup have fallen by over 60 percent in the last 12 months and it is felt that were the businesses to be split up so they stand on their own merits share prices in most of them would rise. Citibank is a part of all this and although there is no expectation of a shake up taking place it will still be interesting to see where the share price goes on the back of the discussion.
HSBC is continuing its progress towards acquiring the sixth biggest lender in South Korea, KEB, as it signs an agreement with the labour union.
The bank has already offered USD6.3 billion to KEB for a controlling interest, with this offer set to expire at the end of July. The HSBC has promised to retain all the staff and identity of the Korean bank and is hopeful that this latest agreement with the union will enable them to move forwards.
HSBC has always been seen as a global bank and this latest position highlights that fact. The bank really understands the needs of different cultures, aided by the fact that they work with the existing staff.