4 minBusiness
Citi CEO Jane Fraser Says Turnaround Enters 'Fun' Phase as Bank Targets Excellence
Citigroup CEO Jane Fraser told Fortune's Most Powerful Women Summit that the bank's restructuring is largely complete and the next phase will focus on outperforming competitors, adopting AI, and maintaining trust.
Citigroup CEO Jane Fraser said the bank has moved past the hardest part of its multiyear overhaul and is now focused on outperforming rivals in its core businesses. Speaking virtually at Fortune's Most Powerful Women Summit on Wednesday, Fraser said the company's third-quarter revenue was its best in a decade, a sign that her turnaround strategy is gaining traction.
«We're definitely in the more fun part of everything that's going on. We've got a lot of the heavy lifting behind us,» Fraser said in conversation with leadership editor Claire Zillman. «Now what I've said to the firm is, if we are going to be the best in the businesses we're in, we have to beat the best.» She described the shift as a «mindset of excellence» that will define the next stage of the bank's journey.
Since taking over as CEO in 2021, Fraser has simplified a sprawling global institution. She reorganized Citi into five core businesses, cut layers of management, and began exiting consumer banking in 14 markets outside the United States. The restructuring also includes 20,000 job cuts scheduled to be completed before 2027. Fraser, the first woman to lead a major Wall Street bank, is ranked No. 1 on this year's Most Powerful Women list.
Fraser said her approach to leadership emphasizes honesty without harshness. Reflecting on a restructuring she led in Citi's mortgage business, she said employees want to hear «the hard truth» along with what the company will do to support them. «You do not have to be tough and unpleasant about it, but you do have to be straight,» she said. In an earlier interview this spring, she put it more bluntly: «I think you can make tough decisions. It does not mean you need to be an asshole.»
Artificial intelligence is central to Citi's next phase. Fraser said AI affects the business in three ways: it «can help you earn money. It can help you save money. It can help you secure the bank.» She stressed the need to «move fast and retain trust.» One example she cited is an AI avatar agent for Citi's wealth business, developed with help from Google DeepMind's team, that can talk with clients at any hour of the night, «when our bankers hopefully are getting some beauty sleep.» She added that the avatar is «not a replacement team member.»
Whether AI will reduce Citi's headcount remains uncertain. «Honestly, we don't know yet,» Fraser said, describing «puts and takes» as some roles are created and others are automated. She also said risk management must keep pace with innovation. «When you're innovating at speed, you have to manage risk at the same speed,» she said, noting that large banks are working together to identify and patch vulnerabilities. «You don't compete on cyber. You collaborate on cyber.»
Citi now requires AI training for 175,000 employees, with a focus on writing prompts. Fraser said fear undermines performance. «I never think people perform well if they're fearful,» she said. The comments came a day after Citigroup reported its strongest third-quarter revenue in ten years, a result that Fraser said validates the bank's direction.
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