Citizens Financial Group, Inc. (CFG): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how Citizens Financial Group, Inc. (CFG) is actually making money and planning its next moves, especially after their big 'Reimagine the Bank' digital push and the focus on Private Wealth talent acquisition. Honestly, mapping out a bank with $222.7 billion in assets requires looking past the headlines; we need to see the engine room-from their FinTech partnerships like Wisetack to the $1.5 billion in Net Interest Income they pulled in during Q3 2025. This Business Model Canvas distills their current strategy, showing you exactly where they are spending on tech (like the $194 million in Q1 2025) and how they plan to grow fee income from both Capital Markets and Wealth Management. Dive in below to see the nine blocks that define their operating reality right now.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Citizens Financial Group, Inc. centers on strategic alliances that drive growth in specialized segments and accelerate digital modernization.

FinTech Partners for Embedded BNPL Financing

Citizens Financial Group, Inc. uses FinTech partnerships to expand its point-of-sale financing reach through the Citizens Pay platform.

• FinTech partner Wisetack provides embedded pay over time options for in-person services, initially focusing on home improvement projects.
• Wisetack connects providers with Citizens Pay for installment financing, which offers attractive rates and low monthly payments.
• Wisetack works with a network of tens of thousands of small services merchants.

Major Technology Merchants for Citizens Pay Platform

Citizens Pay, established as a business platform since 2015, relies on relationships with major retailers to drive consumer installment financing volume.

Strategic Advisory Teams for Private Wealth Expansion

The Private Wealth business accelerates growth by integrating high-performing advisory teams, reinforcing the One Citizens integrated model.

• Over the last 18 months, Citizens Private Wealth has integrated ten new advisory teams.
• Collectively, these ten teams manage more than $10 billion in client assets.
• The New York team, welcomed in June 2025, previously managed nearly $1.5 billion in client assets.
• The Bradley Wealth Partners team, added in November 2025, managed $880 million in client assets.
• The latest addition, CF Retirement Solutions, expands capabilities in 401(k) advisory services for small and mid-sized businesses.
• As of Q3 2025, Private Bank deposits reached $12.5 billion, surpassing the year-end target.
• The Private Bank is projected to generate nearly $1 billion per quarter in loan growth.

Loan Syndication and Capital Markets Partners

Citizens Commercial Banking leverages its capabilities in loan syndication, corporate finance, and capital markets to support large commercial deals.

Core Technology Vendors for AI and Digital Transformation

The Reimagine the Bank initiative relies on partnerships to execute on a data-first, cloud-first, and increasingly AI-first strategy.

• Infosys is a key strategic collaborator in the next-generation transformation program.
• About 800 people, representing half of Citizens' software engineers, are using Github Copilot for AI-assisted software development.
• The bank has moved 750 applications to the cloud and eliminated 25 data centers.
• This digital transformation effort is expected to cut infrastructure costs by 10-15%.
• The size of digital payments at Citizens Financial Group reached $173 million, showing a 17 percent annual growth in 2024.
• The Citizens mobile app ranked #2 among retail banks by JD Power, up from #10 in 2023.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Key Activities

You're looking at the core actions Citizens Financial Group, Inc. (CFG) is driving right now to reshape its business for the latter half of the decade. These aren't just goals; they are the daily, intensive work happening across the organization.

Executing the multi-year 'Reimagine the Bank' digital transformation

This is a massive undertaking focused on redesigning operations using new technologies like generative AI and agentic AI. The execution involves significant infrastructure overhaul. To date, Citizens Financial Group has moved 750 applications to the cloud and eliminated 25 data centers, which has resulted in infrastructure cost reductions of 10-15%. The current TOP 10 program is progressing toward its $100 million pre-tax benefit target by the end of 2025. The broader 'Reimagine the Bank' program is projected to yield a targeted run-rate benefit exceeding $400 million beginning in 2027. About half of the bank's software engineers, totaling 800 people, are using Github Copilot for AI-assisted software development. This transformation is about turbocharging productivity so people focus on more important customer interactions.

Expanding Citizens Private Bank and Private Wealth talent acquisition

The expansion of Citizens Private Bank is a key activity, building on the momentum from its launch in October 2023. Talent acquisition is central to this. For example, in June 2025, Citizens welcomed a top wealth advisory team in New York that previously managed nearly $1.5 billion in client assets. The Private Bank segment is targeting a 20% to 24% return on equity for 2025. Management noted that the segment is on track to meet its 2025 targets of $7 billion in loans and $11 billion in assets under management (AUM). This business is expected to contribute 7% to 2025 earnings, which is ahead of the initial 5% projection.

Commercial Banking: M&A advisory, corporate finance, and capital markets

The Commercial Banking division is actively engaged in investment banking activities. Citizens Capital Markets & Advisory is focused on M&A advisory, debt and equity capital markets, and corporate finance. In Q3 2025, a pick-up in market activity drove Capital Markets revenues to their highest level since the fourth quarter of 2021. The Citizens Commercial Services team reported 6 closed transactions through September 2025 across various commercial services sub-sectors. The bank's 2025 M&A Outlook survey, based on 400 midsize company CEOs, CFOs, and private equity principals, indicated that market sentiment suggested M&A activity was set to grow in 2025.

Managing a balance sheet of $222.7 billion in assets (Q3 2025)

The sheer scale of the balance sheet requires constant, active management across treasury and risk functions. This activity underpins all lending and deposit-gathering efforts. Here are the key figures as of September 30, 2025:

The Net Interest Margin (NIM) target for the close of 2025 is set between 3.05% and 3.10%.

Optimizing the retail branch footprint and deposit mix

Citizens Financial Group maintains a physical presence of approximately 1,000 branches across 14 states and D.C. A key activity is the optimization of this footprint, which involves right-sizing locations rather than mass closures. The bank has transformed about 40% of its legacy footprint. New or renovated branches are shrinking from nearly 7,000 square feet to around 2,000 to 3,000 square feet. This redesign shifts space away from transactions and toward banker conversations. The deposit mix remains a focus, with the bank reporting a 22% noninterest-bearing deposit mix and 65%+ stable retail deposits as of Q2 2025.

The key elements of this branch optimization include:

• Renovating existing locations to be more inviting.
• Shrinking square footage to improve efficiency.
• Increasing private rooms for client conversations.
• Investing in digital tech within the smaller space.

Finance: draft 13-week cash view by Friday.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Key Resources

You're building out the core assets supporting Citizens Financial Group, Inc.'s operations as of late 2025. These are the foundational elements that let the bank deliver its value proposition.

The sheer scale of the balance sheet is a primary resource. As of September 30, 2025, Citizens Financial Group, Inc. reported $222.7 billion in total assets. This massive base underpins all lending and investment activities.

The physical footprint remains a significant, though evolving, asset. Citizens Financial Group, Inc. maintains a network of approximately 1,000 branches and 3,100 ATMs across its operating footprint. This physical presence supports the integrated experience offered alongside digital channels.

Technological infrastructure is rapidly becoming a defining resource. Citizens Financial Group, Inc. is heavily investing in its proprietary technology platforms, focusing on modernization and AI integration. The bank has moved 750 applications to the cloud and eliminated 25 data centers, aiming to cut infrastructure costs by 10-15%. This effort supports advanced capabilities, including the development of platforms like Citizens Pay and the Open Banking API, alongside piloting agentic AI for fraud and complaint handling.

The funding base is critical for stability and growth. The granular, stable deposit base stood at $180.0 billion at the period-end of Q3 2025. This provides a low-cost, reliable source of funding, evidenced by a spot loan-to-deposit ratio of 78.3%.

Human capital, particularly in high-value areas, is a deliberate resource build. The specialized Private Wealth talent, significantly bolstered by hiring from First Republic after the 2023 bank failures, now includes up to about 500 people. This team is driving strong performance in the Private Bank, which surpassed its year-end deposit target in Q3 2025. Also essential is the expertise within Commercial Capital Markets, which saw revenues surge by 58% quarter-over-quarter in Q3 2025.

Here's a quick look at the core financial scale supporting these resources as of Q3 2025:

The deployment of this human and technological capital is focused on specific growth vectors. You can see the strategic emphasis through these key operational metrics:

• Private Bank deposits reached $12.5 billion in Q3 2025.
• Capital Markets fees increased 58% quarter-over-quarter.
• Wealth management fees grew 6% quarter-over-quarter.
• The bank is targeting an exit of all data centers by 2025.
• Approximately 800 people (half of software engineers) are using Github Copilot.

Finance: draft 13-week cash view by Friday.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Value Propositions

You're looking at the core things Citizens Financial Group, Inc. offers to keep clients engaged and the bank growing. Here's the breakdown of what they are selling as of late 2025, grounded in their recent performance.

Integrated, advice-based consumer banking experience

Citizens Financial Group, Inc. focuses on delivering a unified banking journey, supported by solid operational efficiency. The bank reported an efficiency ratio of 63.0% for the third quarter of 2025, an improvement of approximately 170 basis points sequentially.

The performance metrics supporting this value proposition include:

• Net Interest Income (NII) for Q3 2025 was $1,488 million, up 3.5% quarter-over-quarter.
• Net Interest Margin (NIM) on an FTE basis stood at 3.00% in Q3 2025.
• Total Revenue for Q3 2025 reached $2,118 million.

Comprehensive commercial solutions: lending, treasury, and capital markets

For businesses, Citizens Financial Group, Inc. provides a full suite of services, seeing significant momentum in fee-based areas. The growth in Capital Markets fees was particularly strong in Q3 2025.

Here are the hard numbers showing the commercial segment's value delivery in Q3 2025:

Also, in the broader market context relevant to treasury solutions, a Citizens Bank survey from 2025 showed that 73% of midsize businesses use either Real Time Payments (RTP) or FedNow.

Specialized Private Wealth management for high-net-worth clients

The Private Bank buildout is tracking well, contributing measurably to earnings and asset growth. This segment is a key driver of loan and deposit expansion.

The Private Wealth contribution details for Q3 2025 are:

• Contribution to Earnings Per Share (EPS): $0.08, an increase of $0.02 quarter-over-quarter.
• Wealth Fee Revenue Growth: Up 6% QoQ and up 22% Year-over-Year.
• Assets Under Management (AUM) reached $6.5 billion as of Q2 2025, on track for 5% EPS accretion for 2025.

Citizens Pay: point-of-sale financing for large merchants and SMBs

Citizens Pay offers installment loans at the point of sale. While the most recent specific portfolio size for late 2025 wasn't immediately available, the historical growth trajectory shows the scale of this offering.

The merchant-financing loan portfolio grew from $700 million to $1.2 billion over the year prior to 2025.

Strong balance sheet and liquidity

Citizens Financial Group, Inc. maintains a position of strength in capital and liquidity, which underpins all other value propositions. This stability gives them room to execute strategic initiatives and return capital.

Key balance sheet and capital figures from Q3 2025:

• Common Equity Tier 1 (CET1) ratio: 10.7%.
• Return on Tangible Common Equity (ROTCE): 11.7%, up 70 basis points QoQ.
• Spot Loan-to-Deposit Ratio (LDR): 78.3%.
• Total Assets as of September 30, 2025: $222.7 billion.
• Pre-provision Profit (PPNR) for Q3 2025 was $783 million, up 9% QoQ.

The Board also approved an expansion of the repurchase program to $1.5 billion as of Q2 2025, supported by this strong capital base. Finance: draft 13-week cash view by Friday.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Customer Relationships

You're looking at how Citizens Financial Group, Inc. (CFG) is changing the way it connects with clients, moving from simple transactions to deeper, advice-led relationships. This is critical as the bank manages its $222.7 billion in assets as of September 30, 2025.

Shift to an advice-based model, moving away from transaction-focus

Citizens Financial Group is clearly pushing its client base toward advice and planning, especially in the Small and Midsize Business (SMB) segment. The data from the fourth annual Citizens Business Report Survey in 2025 shows a strong correlation between seeking advice and outperformance.

Here are the tactics of the advice-driven SMB outperformers:

• 53% prioritize cash flow management in 2025, compared to only 38% of other companies.
• 48% plan to start using new financial management tools this year, an adoption rate five times that of other companies.
• 47% say they will lean even more heavily on expert advice in 2025, versus only 6% of other businesses.

The bank is making sure its business bankers are central to this strategy; 84% of advice-driven companies specify their business banker is a key member of their expert advisor team. This shift supports the goal of offering tailored advice, ideas, and solutions.

Dedicated Private Wealth teams for high-touch, personalized service

The expansion of the Private Bank/Private Wealth segment is a cornerstone of the high-touch strategy, aiming to capture the high-net-worth market with personalized service. This segment is a major growth driver, targeted to contribute at least 5% accretion to Citizens Financial Group's bottom line in 2025.

The Private Bank showed significant growth in the second quarter of 2025:

Management is targeting a 20% to 24% return on equity for the Private Bank segment in 2025, underscoring the focus on high-value client relationships.

'One Citizens' initiative for cross-segment collaboration and comprehensive solutions

While the specific term 'One Citizens' isn't quantified with a direct metric in the latest reports, the strategic initiatives point to this integrated approach. The bank commenced work on a broad 'Reimagining the Bank' initiative, a multi-year TOP program designed to drive benefits from using new technologies to serve customers in new ways and run the bank better. This implies breaking down silos to offer comprehensive solutions across Consumer, Commercial, and Wealth segments. The Private Bank build-out itself is described as an effort to offer integrated wealth and banking services.

Digital self-service tools via mobile and online banking

Digital capabilities are being enhanced to support self-service and improve efficiency, which frees up human advisors for more complex needs. Citizens Financial Group is actively upgrading its core systems and leveraging advanced technology.

Key technology and adoption indicators include:

• The bank moved 750 applications to the cloud.
• It eliminated 25 data centers.
• Infrastructure costs were cut by 10-15%.
• The size of digital payments reached $173 million in 2024, showing a 17% annual growth rate.

In Consumer Banking, this translates to an integrated experience that includes mobile and online banking, alongside approximately 3,000 ATMs and 1,000 branches across 14 states and the District of Columbia as of September 30, 2025.

Full-service customer contact center support

The full-service customer contact center remains a key part of the integrated Consumer Banking experience. To enhance this channel, Citizens Financial Group is deploying Artificial Intelligence (AI) to support representatives directly. More than half of Citizens' customer service representatives now use AI in the contact centers to receive real-time suggestions during calls.

For example, if a customer asks for a low-interest credit card with good rewards, the system suggests the Summit Reserve card on the representative's screen. This use of generative AI in the contact center is part of the broader 'Reimagining the Bank' effort to improve service delivery.

Finance: draft the Q4 2025 Customer Satisfaction Index (CSI) target by next Monday.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Channels

You're looking at how Citizens Financial Group, Inc. (CFG) gets its products and services to customers as of late 2025. It's a mix of the physical and the digital, which is standard for a bank this size.

The physical footprint remains important for core services. Citizens Financial Group, Inc. maintains a physical branch network across exactly 14 states and the District of Columbia. As of June 30th, 2025, the network included approximately 1,000 branches. Complementing this is an extensive ATM network, reported at approximately 3,100 machines as of that same date.

For the digital-first customer, Citizens Access serves as the dedicated channel. This division is an online-only platform focusing on high-yield savings and Certificates of Deposit (CDs). Here are the specific rates accurate as of 10/30/2025:

Customer support for Citizens Access is available seven days a week via phone or chat. This digital channel exists alongside the comprehensive mobile and online banking platforms used by all segments for daily transactions.

For higher-value segments, the distribution shifts to dedicated personnel. The Private Wealth channel saw significant growth metrics leading into 2025. You can see the scale of that channel:

• Citizens Private Bank deposits reached $8.7 billion by Q1 2025.
• Assets Under Management (AUM) reached $5.2 billion by Q1 2025.
• AUM climbed further to $6.5 billion by Q2 2025.
• The segment is targeting a 20% to 24% return on equity for 2025.

These relationship managers, covering both Private Wealth and Commercial Banking, are the direct channel for complex advisory services, including lending, treasury management, and capital markets capabilities.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Customer Segments

You're looking at how Citizens Financial Group, Inc. (CFG) structures its client base across its core operations as of late 2025. This segmentation drives their product delivery, from the branch network to the Capital Markets desk.

As a baseline for context, Citizens Financial Group, Inc. reported total assets of $222.7 billion as of September 30, 2025, with total deposits reaching $180.0 billion on the same date. Net loans and leases stood at $138.9 billion.

The bank operates across three reportable segments for management purposes: Consumer Banking, Commercial Banking, and Non-Core.

Mass Market Individuals (retail banking and lending)

This group is served through the Consumer Banking segment, which provides the full range of banking, lending, savings, and wealth management products for individuals. The physical delivery network supports this segment heavily.

• Geographic reach covers approximately 14 states and the District of Columbia.
• The network includes about 1,000 branches and approximately 3,100 ATMs.
• Retail loan balances saw a decrease of $494 million in Q1 2025, partially offset by growth in the Private Bank.

Mass Affluent and High-Net-Worth Individuals (Citizens Private Bank/Wealth)

Citizens Financial Group, Inc. launched the Private Bank to target high-end clients, often recruiting talent from disrupted firms. This segment is a key growth driver, aiming for high returns.

Here's the quick math on their Private Bank trajectory:

The segment is showing momentum; wealth fees rose 7% in Q1 2025 due to higher annuity sales. The Private Bank is projected to achieve a Return on Equity (ROE) exceeding 20% in 2025 and contribute at least 5% accretion to the bottom line. In November 2025, they added a team managing $880 million in client assets.

Small Businesses (lending, treasury, and BNPL merchant partners)

Small business offerings are integrated within the Consumer Banking segment, alongside personal banking and lending. Specific standalone financial data for the Small Business lending portfolio or BNPL merchant partner count isn't explicitly broken out in the latest public reports.

• Products include a full range of lending and banking solutions.
• The BNPL merchant partner segment is part of the overall strategy, but concrete figures for its size or transaction volume aren't available here.

Middle-Market Companies (core Commercial Banking focus)

Commercial Banking is a core focus, offering lending, treasury management, foreign exchange, and risk management solutions to middle-market companies. This segment is central to the bank's lending book.

The loan portfolio experienced some shifts; Commercial loans and leases saw a decrease of $743 million in Q1 2025, primarily attributed to market conditions impacting client demand. However, management expects average loan balances to be stable for the full year 2025, supported by growth in commercial lending categories.

Large Corporations and Financial Institutions (Capital Markets)

This group utilizes Citizens Financial Group, Inc.'s capabilities in loan syndication, corporate finance, merger and acquisition advisory, and debt and equity capital markets.

Market activity drove strong results here; Capital Markets revenues in Q3 2025 were the highest since the fourth quarter of 2021, with pipelines remaining strong. Still, noninterest income from Capital Markets fees declined 17% sequentially in Q1 2025.

Finance: draft the Q4 2025 segment revenue attribution by Friday.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Cost Structure

You're looking at the engine room of Citizens Financial Group, Inc. (CFG) costs as of late 2025. This is where the money goes to keep the lights on, the systems running, and the talent hired.

The overall overhead is significant. For the first quarter of 2025, the underlying noninterest expense hit $1.314 billion. This level of spending pushed the efficiency ratio to 67.9% for the three months ended March 31, 2025.

Here's a breakdown of those noninterest expenses, showing the quarter-over-quarter changes from Q4 2024:

The commitment to modernizing operations is clear in the technology spend. Citizens Financial Group spent $194 million on technology in Q1 2025. This investment is ongoing, as Equipment and software expense increased by $10 million year-over-year from Q1 2024 to Q1 2025, driven by platform costs and continued tech investment.

Personnel costs reflect strategic growth, especially in wealth management. Salaries and employee benefits increased by $22 million year-over-year in Q1 2025, directly reflecting hiring related to the Private Bank and Private Wealth build-out. To be fair, this talent acquisition is a major focus; for instance, in November 2025, Citizens expanded its Private Wealth business by adding a team that previously managed $880 million in client assets.

Funding the balance sheet involves substantial interest expense, though specific Q1 2025 figures aren't fully detailed here. We do know about recent debt activity:

• Citizens Financial Group issued $750 million of fixed/floating-rate senior notes in March 2025, maturing in March 2031.
• The company announced the redemption of all outstanding 4.300% Fixed-Rate Subordinated Notes due December 3, 2025, with a redemption date set for November 3, 2025. The prompt suggests this amount was $450 million.

Finally, the cost of operating under current banking laws is a persistent factor. Citizens Financial Group stated it will continue to evaluate the impact of prudential regulatory changes, including their potential resultant changes in regulatory and compliance costs and expenses.

Finance: draft 13-week cash view by Friday.

Citizens Financial Group, Inc. (CFG) - Canvas Business Model: Revenue Streams

You're looking at how Citizens Financial Group, Inc. (CFG) actually brings in the money based on their latest reported figures from Q3 2025. It's a mix of traditional lending income and various fees, which is pretty standard for a large regional bank, but the recent fee growth is definitely worth noting.

The core of the revenue engine remains the spread between what they earn on assets and what they pay on liabilities. For the third quarter of 2025, Net Interest Income (NII) hit $1,488 million. That NII figure reflected a 3.5% sequential increase from the prior quarter, supported by a Net Interest Margin (NIM) that expanded by 5 basis points to reach 3.00% on a fully taxable equivalent basis. That's the bread and butter.

Anyway, the non-interest income side showed some real zip, especially in the capital markets. Here's a quick look at the major components driving the revenue streams as of the end of September 2025:

When you break down that Noninterest Income, the fee-based revenue streams are showing distinct performance trends. It's clear where the recent momentum is coming from.

• Fee Income from Capital Markets saw a massive sequential jump of 58% Quarter-over-Quarter (QoQ) in Q3 2025, driven by a pick-up in market activity, hitting their highest revenues in that segment since Q4 2021.
• Fee Income from Wealth Management also contributed positively, growing by 6% QoQ.

The loan book itself is a key asset generating income. As of the period-end for Q3 2025, the total loans and leases on the books stood at $140.9 billion. This represented a 1% sequential growth, with the Private Bank and retail sectors being the primary drivers of that loan expansion.

Service charges and fees from consumer and commercial products fall under the broader Noninterest Income line, which totaled $630 million for the quarter. While the exact split isn't itemized in the headline figures, the growth in Capital Markets and Wealth Management fees suggests those areas are contributing significantly to that total fee pool. The bank is definitely pivoting toward more durable fee sources, moving away from being overly reliant on mortgage activity, which is a smart move in this environment.

Finance: draft 13-week cash view by Friday.