Citi suspends USA Prestige card applications August 2018
#106
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Based on a WSJ article today, Jud Linville who joined Citibank from American Express back in 2010 is leaving and he was the head of global cards and consumer services and oversaw the launch of many Citibank credit cards including the original Citi Thankyou Prestige which later changed its name to Citi Prestige and most recently the launch of the Costco card. Prior to Jud Linville leaving according to the article Citibank had each department focusing on their own product offerings rather than working across the bank to develop products that resonate with their customers. As such with Mr. Linville leaving according to the article the bank is now going to develop products across the various departments so that they can better cross-sell products and this will better align their product development in the US with how they operate globally.
In this context it makes a lot of sense that Citibank would discontinue or suspend the current Citi Prestige card since it would appear from surveys and previous articles in the media that this product and various other Citibank credit card products are not meeting Citibank's goals. When the new organizational structure goes in place, I can see Citibank developing a card that meets the needs of the mass affluent customer that they are trying to target with Citi Priority and Citigold. What the card looks like I have no idea but since Citibank often likes to develop unique card offerings that are differentiated rather than me too cards, I would imagine that the card will be at least somewhat differentiated and hopefully compelling.
In this context it makes a lot of sense that Citibank would discontinue or suspend the current Citi Prestige card since it would appear from surveys and previous articles in the media that this product and various other Citibank credit card products are not meeting Citibank's goals. When the new organizational structure goes in place, I can see Citibank developing a card that meets the needs of the mass affluent customer that they are trying to target with Citi Priority and Citigold. What the card looks like I have no idea but since Citibank often likes to develop unique card offerings that are differentiated rather than me too cards, I would imagine that the card will be at least somewhat differentiated and hopefully compelling.
#107
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As I recall, DoC updated his post from "will be discontinued" to "won't be discontinued" within an hour or two. There's simply no way Citi changed its mind in such a short timeframe based on some internet comments. People yapping on the internet wouldn't have changed the card's profitability one bit.
FWIW - the whole situation was changed because of the comment of a Citi's spokesperson. A spokesperson's job is PR, which means that the comment could be sugarcoated.
#108
Join Date: Mar 2017
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Nothing has changed.
See above quote. Also, I never paid the $450 annual fee. I got rid of the card because I got tired of Citi's shenanigans. The transfer partners (other than Jet Blue) were never useful to me... I would've either transferred there or used the portal for airline redemptions.
Not really. The perks and rewards of the cards are still comparable, even if many can't access the card. Just because you can't get it, doesn't mean we can't compare them.
I guess you've never heard of people getting an average $12,000/night room for free before taxes. I would say $2,000 is more than a fair guess.
Let me get this straight... You call the Citi TY transfer partners garbage. You had the Citi Premier Card. You recently doubled down and upgraded to the Citi Prestige Card. $450 annual fee, $250 air credit in 2018, and another $250 air credit in 2019 before the next year's annual fee posts. 4th Night free on hotel stays. You then canceled the card within two months.
... If all is true, it appears that paying the $450 annual fee, losing a 2019 $250 airline credit and losing 4th Night free hotel benefits before the next annual fee appears to be a questionable decision. One can easily profit by keeping and using the Prestige card in 2019 before the card's first anniversary.
... If all is true, it appears that paying the $450 annual fee, losing a 2019 $250 airline credit and losing 4th Night free hotel benefits before the next annual fee appears to be a questionable decision. One can easily profit by keeping and using the Prestige card in 2019 before the card's first anniversary.
I guess you've never heard of people getting an average $12,000/night room for free before taxes. I would say $2,000 is more than a fair guess.
Last edited by mikesyr18; Aug 14, 2018 at 5:10 am
#109
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No, I have heard those stories, but they're irrelevant now that the 4th-night terms have changed.
#110
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...Citi official statement:
"Our go-to-market strategy continuously evolves to feature different products and offers. We remain committed to the Prestige product and servicing our valued existing cardmembers. We look forward to reintroducing the card for new cardmembers in the near future."
...
"Our go-to-market strategy continuously evolves to feature different products and offers. We remain committed to the Prestige product and servicing our valued existing cardmembers. We look forward to reintroducing the card for new cardmembers in the near future."
...
....with Mr. Linville leaving according to the article the bank is now going to develop products across the various departments so that they can better cross-sell products and this will better align their product development in the US with how they operate globally......
When Citi introduced Chairman card ~2005 it was targeted at Smith Barney clients, later opened to general applications, but then accounts were audited and some of us were asked to submit proof of assets (not income). Likewise, JPM Palladium was nominally restricted, but in practice applications were accepted from others. I think this happens because the issuer needs scale to make benefits affordable. Chase has solved this problem by sharing most benefits between JPM Reserve and the mass market Sapphire Reserve. Citi could solve it by keeping the existing Prestige cardholder base, but only accepting new applications from customers who meet their banking criteria.
#111
Join Date: Apr 2015
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What's funny is... this is the most activity that the Citi Board has seen in months. Aside from the Prestige, their offerings have been below par since they lost most of their partner cards.
#112
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I think the Premier is an extremely well-rounded mid-tier card all things considered.
#113
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My expectation is that Prestige will reappear as a product linked to Citi's consumer banking or investment businesses. This could mean that the card is only available to clients with specific banking accounts (similar to JPM Reserve, or HSBC Premier World Elite MasterCard). -OR- it could mean the card will be available to anyone, but with benefits that only make sense if you are (example) a CitiGold client.
The problem is a few years ago, Citi just kicked away some of the valuable customers out when Citigold increased the minimum (AFAICT - HSBC absorbed plenty of customers out of this). Also - Citigold isn't a new or refreshed product. It has been in the market for decades. Why does Citi suddenly think like HSBC in creating the exclusive experience?
I am not saying that you are wrong. But looking from the perspective of Citi, it is unlikely.
#114
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Depends which customers they are looking for. Chase is (apparently) looking for $10 million to have the type of account that makes one eligible for JPM Reserve. By that standard Citigold is pretty far downmarket.
#115
Join Date: Jul 2014
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Yeah, Citigold kicking out customers, or drastically raising the bar on what counts as eligible assets was very strange.
We stayed with them, but it was annoying at the time, and I still don't trust them to keep the rules the same.
A mortgage with Citi is a non qualifying asset for CG status - even though that likely earns them 25 bps for servicing even if they had sold the risk to someone else - but a self directed brokerage account holding SPY which they earn nothing from counts? I can't see that staying this way forever.
We stayed with them, but it was annoying at the time, and I still don't trust them to keep the rules the same.
A mortgage with Citi is a non qualifying asset for CG status - even though that likely earns them 25 bps for servicing even if they had sold the risk to someone else - but a self directed brokerage account holding SPY which they earn nothing from counts? I can't see that staying this way forever.
#116
Join Date: Apr 2015
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Don't get me wrong, I'm not saying that the products they have aren't good... it's just they barely have any products anymore. It's like they completely abandoned the credit card department, and the only times this board has seen an uptick in activity lately, have been when they nerfed benefits or stopped taking apps. I remember a time when this board was nearly as busy as the Chase board. It makes me wonder what their plans for their CC division really is, because at the moment, it clearly seems like an afterthought.
#117
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As a matter of fact, I keep the TY Premier (only) for the reason that Citi has some of the world's very best airline partners. You could say that again after you have flown business or first class in SQ, CX, QF, or QR?
#118
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Don't get me wrong, I'm not saying that the products they have aren't good... it's just they barely have any products anymore. It's like they completely abandoned the credit card department, and the only times this board has seen an uptick in activity lately, have been when they nerfed benefits or stopped taking apps. I remember a time when this board was nearly as busy as the Chase board. It makes me wonder what their plans for their CC division really is, because at the moment, it clearly seems like an afterthought.
It may not be something of much interest to these boards, but their Costco card is a pretty darn good card for a free offering to be kept forever. No FTF, good bonus categories, simple redemptions for the majority of humanity who doesn't fly F/J internationally, no AF etc. We use it a lot as the top of wallet card especially for things like medical bills where you might have a billing issue years later. (We have!) In that situation I want the bill on a card I know I will still have in the future, so that if ever needed I can pull up old statements online and prove something was paid.
I think they blew a lot of their marketing wad on getting that Costco card, which is why some other product lines feel underloved by consumers now. But I would observe that I have found it way easier to get retention offers on anything from Citi versus Chase. I have never gotten anything from Chase despite pretty good real spend on everything we've used. Citi, pretty much universally, only charges us for one thing (Prestige) where the bait to keep it as gone away in recent years. At least there we get the $100 discount for opening in branch.
#119
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Citi's approach to co-branded cards is different than other issuers. They partnered with one, and only one, airline and hotel chain, but those partners did not reciprocate the exclusivity. However, I do think Chase is ripe to lose one airline and one hotel partner, and Citi should be well positioned to pickup something to replace Hilton.
#120
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https://www.businesswire.com/news/ho...ell-Costco-U.S.