Forum: Make qualifying full banks have minimum number of retail branches
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It was reported that Citibank will close its last branch in Singapore as it focuses on serving customers online and advising affluent clients at its wealth hubs (Citibank to close last regular branch in Singapore in October amid shift to wealth hubs, Sept 25).
Citibank N.A. was awarded qualifying full bank (QFB) status in 1999 and this QFB status was transferred to Citibank Singapore in 2004.
Holding a QFB licence allows Citibank Singapore to have additional branches and off-premises automated teller machines, which can be shared by other QFBs.
Closing all its branches and requiring retail customers to travel to the three existing wealth centres for any service will make it more time-consuming and inconvenient for them.
The wealth hubs cater to customers with assets of at least $250,000 or who have investible assets of $1.5 million or more.
Regular retail customers may not be keen on investing and just require a normal in-person bank service.
Perhaps the Monetary Authority of Singapore should consider mandating QFBs to have a minimum number of branches to service retail customers.
QFBs should not choose to service high-end customers and only provide the bare minimum service to regular retail customers.
Foo Sing Kheng
