Citi shakes up leadership to fix data woes: Memo

“In recent months, it has been clear to us that our data efforts have expanded significantly from our original plan as we have progressed the work,” said the memo, signed by Ryan and Selva. “We have also been clear about our need to accelerate our progress in this area and have accordingly committed to dedicating additional resources to it.”

Citi spent a massive amount of resources on a firm-wide initiative to appease regulators. According to earnings reports, the number of employees for the so-called “Transformation” program has increased to 12,000 from about 3,000 in 2021. Citi has spent at least $7.4 billion on this endeavor from 2021 to 2023. The bank now hopes that fresh blood will help. right of the ship.

Here are the new leaders

Ryan joined Citi in June from PricewaterhouseCoopers, where he led its US business for seven years. He was in the running to become global chairman and lead the consulting giant until he announced his decision to step down in October.

He was involved in modernizing Citi’s technology and streamlining its processes. The bank is known for its outdated technology and patchwork systems. One of his biggest blunders is the accidental transfer of $900 million to Revlon’s creditors due to outdated technology.

The memo touts Ryan’s “extensive experience in implementing large-scale technology projects,” which includes a digital transformation at PwC.

“Data and technology are intrinsically linked, and the maturity and sustainability of our data transformation plan requires us to leverage technology more,” the note said.

Citi is also appointing a new leader to lead its Chief Data Office: Ashutosh Nawani, who previously led enterprise risk management. Nawani will report to Ryan and serve as head of the company’s data office and data transformation. He was a partner at PwC in London, leading its financial risk advisory practice, before joining Citi in 2021.

Citi’s current Chief Data Officer, Japan Mehta, will transition to a new role after Nawani “transitions into his new role over the coming months,” the memo said. His future role was not specified.

Selva’s difficult tenure as COO

Selva is a lifelong Citi person who started with the bank in 1991 in India and rose through the ranks to lead consumer banking in Asia. In 2018, he moved from Singapore to New York to lead the US consumer bank, reporting to Jane Fraser. Selva succeeded him as global head of consumer banking in 2021, when she was named CEO.

Selva was named COO in March 2023 and was tasked with the transformation program. Despite Ryan’s new involvement, he is still responsible for the broader initiative and the bank’s controls and operations.

Last May, Selva and the bank were sued by a former Transformation executive, Kathleen Martin, who served as interim president of Data Transformation.

According to the lawsuit, Selva pressured Martin to withhold information that would make Citi “look bad” from the OCC. After repeated refusals, she was fired in September 2023. Mehta became chief data officer the following month.

Citi denies the allegations and filed a counterclaim in late August, claiming Martin was fired for underperformance.