Citi Rebuilds Cards Around Affluent Customers and AI

Citi held its Investor Day on Thursday (May 7). Executives laid out a technology-driven growth strategy built on artificial intelligence (AI). Citi is moving AI out of back-office pilots and into a core operating layer. That layer now spans cards, payments, wealth management and consumer banking.

CEO Jane Fraser framed it as a natural next step. Citi has spent years rebuilding infrastructure and simplifying its operations.

“We rebuilt the engine,” CFO Gonzalo Luchetti later said. He described investments in infrastructure, automation and controls as the foundation of Citi’s next growth phase.

Fraser described AI as an “end-to-end” capability across the firm. Other executives also highlighted ambitions around “AI personal shoppers” and broader automation for U.S. consumers.

Citi’s AI Push Spans Payments, Treasury and Wealth Management

Andy Sieg, Citi’s head of wealth, offered more specific context. “AI orchestration, along with intelligently routing information and triggering actions in real time, ensures that the right insights reach the right person at the right moment,” Sieg said. “We’re embedding AI seamlessly across our platform and partnering with true leaders like Google and Palantir to make it happen.”

Sieg named the endgame: “an autonomous intelligence system that enables personalized insight for every client 24/7 and at scale.”

That AI discussion extended beyond wealth management into payments and treasury. Citi’s Shahmir Khaliq, head of services, described AI as still in the “early stages.” He pointed to instant payments and cross-border transactions as prime areas for reshaping client operations. His presentation covered seven AI use cases tied to payments modernization and cross-border innovation.

Luchetti said AI and automation will become more important to Citi’s margins. “Our approach to expense management is to maintain strong cost discipline on a tactical basis and continue to drive structural efficiencies through tech and AI automation,” he said.

Citi’s U.S. Cards Strategy Targets Affluent Customers With AI-Powered Tools

A major focus at Investor Day was Citi’s U.S. consumer cards franchise. Executives said the bank is shifting toward affluent consumers, co-brand partnerships and AI-powered tools.

Pam Habner, head of U.S. consumer cards, said Citi is pulling back from private-label retail cards. The bank is investing more in general-purpose and co-branded products instead. General-purpose cards now account for 92% of spending volume, up from 89% in 2022.

Habner repeatedly emphasized the value of premium and affluent cardholders to Citi’s broader strategy. Since 2022, the share of customers earning above $150,000 has grown by more than 600 basis points.

Citi executives highlighted expanded partnerships with American Airlines and Costco. The goal is to bring more spending into Citi’s travel, dining and rewards ecosystem. Habner described the strategy as a “virtuous cycle of growth” fueled by partnerships, loyalty and digital engagement.

AI again surfaced as a core theme. Habner said Citi is using AI models in underwriting, servicing, marketing and collections. “This isn’t just about playing defense and reducing expense,” she said. “It’s about playing offense, leveraging AI to win with customers and unlock top-line growth.”

She cited concrete examples. AI-driven underwriting models increased approval rates while staying within Citi’s existing risk limits. AI-enabled servicing tools also reduced handling times and improved digital collections efficiency.

Habner also outlined Citi’s early thinking on agentic commerce. “An AI agent could automatically rebook a canceled flight and arrange transportation, paying with the card that offers the best travel benefits and protections,” she said.

Citi’s Cards Growth Relies on Credit Discipline as Much as AI

Still, executives spent as much time on credit discipline as on futuristic commerce models.

Habner acknowledged investor concerns about rising credit losses. She said Citi has been steering the portfolio toward higher-FICO borrowers and lower-risk lending. “Strong risk discipline has allowed us to grow loans while stabilizing loss rates,” she said.

Luchetti reinforced that message. The bank’s consumer portfolio remains weighted toward prime borrowers. “We are carefully managing a stable prime U.S. consumer portfolio with 85% of FICO scores greater than 660,” he noted.

He also said Citi’s broader transformation is starting to show in the numbers. “We are confident in our trajectory,” Luchetti said. “This is a new era for Citi.”