The Future is Female for Citigroup

On September 10, 2020, Citigroup announced that Chief Executive Officer (CEO) of 8 years, Michael Corbat, will be stepping down in February of 2021 from this current role, and will be replaced with current President of Citi & CEO of Global Consumer Banking, Jane Fraser.

Fraser, who was also appointed to the board, effective immediately, has a longstanding history with the bank. In April 2015 she was named CEO of Citigroup Latin America, overseeing operations in 24 countries internationally. Prior to that role, she was promoted to CEO of US Consumer and Commercial Banking, succeeding female colleague and retiree Cecelia Stewart in March 2014.

Fraser was formally endorsed by Michael Corbat. “I have worked with Jane for many years and am proud to have her succeed me. With her leadership, experience, and values, I know she will make an outstanding CEO,” said Corbat.

This internal praise is echoed externally across the board. In 2019, American Banker named her the sixth most powerful woman in the entire banking industry for her work in Mexico as CEO of Citigroup Latin America. In this role, Fraser facilitated software named CoDi, a tool that allows consumers to make purchases by using QR codes on their mobile phones. Through this system, Mexicans will walk into banks to load physical cash onto a mobile app that they can use to make purchases. Transactions under $400 will be free.

The move to hire a female as CEO is groundbreaking for the bank, and for the financial services sector as a whole; it is the first time a major Wall Street bank will be led by a woman. Currently, 7.4% CEO roles of Fortune 500 companies are held by females across the world.

C. Nicole Mason, president and CEO of the Institute for Women’s Policy Research, wrote in response to the appointment, saying that Fraser’s appointment is a significant win for the gender equity movement in banking.

“Her appointment will prove meaningful to the financial sector and have a rippling effect, perhaps paving the way for other women to lead in similar ways,” Mason said.

Fraser is a University of Cambridge graduate, and attended business school at Harvard, graduating in 1994. Prior to her work at Citi, she worked for accredited companies such as Goldman Sachs and McKinsey & Co.

Citations: https://www.nbcnews.com/business/business-news/citi-announces-first-female-ceo-mega-bank-n1239779 https://www.businessinsider.com/meet-jane-fraser-the-first-woman-ceo-of-citigroup-2020-9#in-a-thursday-statement-announcing-his-retirement-and-frasers-appointment-corbat-60-wrote-i-have-worked-with-jane-for-many-years-and-am-proud-to-have-her-succeed-me-with-her-leadership-experience-and-values-i-know-she-will-make-an-outstanding-ceo-9 https://www.americanbanker.com/list/most-powerful-women-in-banking