National Australia Bank will close a range of Citi-branded deposit and transaction accounts to new customers in May, but says it will ramp up marketing of Citi’s stalled buy now pay later platform.
Citi’s Spot BNPL service stopped accepting new applications in February last year after the company revealed it needed to “elevate security measures” and to verify the personal details of existing users of the service.
The protracted freeze on taking new customers stoked speculation in the payments industry that the Spot service would eventually be withdrawn from the market.
However, a NAB spokesperson confirmed to Banking Day that it was progressing plans to re-open Spot to new customers in the coming months.
“Spot will be open shortly for new applications,” the NAB spokesperson said.
“The future of Spot is bright – we see Spot as a product that customers can choose to use alongside their NAB products.”
It is not clear whether NAB will eventually ditch its house-branded buy now pay later service to make way for Spot.
That decision might depend on whether NAB decides to integrate Citi customers with the flagship brand or under another moniker.
NAB could potentially migrate Citi customers to its digital U-Bank brand.
Spot became part of the NAB group in June last year after the acquisition of Citi’s Australian retail banking operations was completed.
Since that time prospective customers of the buy now pay later platform have been able to register their details on a wait list.
While NAB has confirmed its commitment to Spot, it has also announced sweeping changes to the availability of Citi-branded transaction, deposit and cash management accounts.
From 20 May new customers will not be able to apply for Citibank’s Online Saver and the Plus account.
Fresh applications will also not be accepted for the Citibank Cash Investment Account.
Citi-branded term deposits will only be available to customers who held a transaction account before 20 May.
According to the Citi website the product changes followed a strategic review by NAB.
“Following the acquisition of Citi's consumer banking business, NAB conducted a
review of the products offered by Citi,” the website tells customers.
“As a result of this review, it was decided that we can no longer accept new applications for certain savings and transaction accounts.”
Disclosures on the website indicate that more changes to the Citi product set are in the offing.
“If you are an existing account holder, you can continue to use your account(s) after
20 May 2023,” the website tells customers.
“Please log on to Citi Online to ensure your contact details are correct,
so we can continue to keep you informed of any future changes to your products
and services.”