Citi and Citizens Revamp Branches to Deepen Customer Ties and Boost Competitiveness

As deposit and payment products become increasingly commoditized, banks find it difficult to build lasting differentiation through pricing alone. Physical branches remain important gateways for deepening relationships because they can provide wealth management, mortgage and business services. Citi operates 644 branches across six core U.S. markets, while Citizens has reduced its network to about 970 locations from 1,180 a decade ago. Both are seeking to increase the productivity of their existing networks instead of pursuing aggressive expansion into new regions.

Citizens unveiled its “NEXT” network optimization plan on July 16, 2026, proposing to close about 100–120 in-store branches and open 50–60 new locations focused on affluent customers and advisory services. Deposits stood at $185.6 billion at the end of the second quarter, up 1% from a year earlier. Citi is maintaining its presence in six markets and emphasizing broader relationships with existing customers, but has not disclosed any new investment amount or timetable.