Naveed Anwar – Our man at Citi

There is a special place in every Pakistani banker’s heart for Citibank. Despite not being the biggest foreign bank in Pakistan by any estimation, Citibank has had a disproportionate impact on financial leadership  in the country. In both Corporate Pakistan – as well as the government – it means something special to be able to call oneself an “ex-Citibanker”, more so than any other financial institution.

The bank’s alumni in Pakistan include two former federal finance ministers – Shaukat Aziz and Shaukat Tarin – one of whom (Aziz) went on to become Prime Minister. They also include two provincial finance ministers – Murad Ali Shah of Sindh and Hashim Jawan Bakht of Punjab – one of whom (Shah) went on to become provincial chief minister.

That, of course, is the place of Citibankers within Pakistan. Now imagine a Pakistani that is not just a Citibanker but is one of the institute’s leaders on a global scale. That is the unique place that Naveed Anwar holds. Born in Kuwait to Pakistani expats and later raised in Lahore, Anwar is currently the driving force behind Citibank’s global digital strategy in a tech world where Pakistani talent is sparse. 

How did this happen? Anwar’s career trajectory is a compelling story of transition and adaptation. His career started in the tech hub of Silicon Valley, with his formative experiences in major tech companies like Netscape and AOL, which provided the essential building blocks for his subsequent move into the fintech sector at PayPal. Subsequently, he challenged himself by venturing into the banking sector, starting with Capital One and eventually landing at Citi – a global bank with a presence in more than 90 countries where he works as the managing director, global head of digital and data platforms in the treasury and trade solutions division.

The beginning

It all began in 1993. A younger Anwar had just completed his Fsc from FC College in Lahore, and was now faced with a monumental decision: join the Pakistan army or venture abroad to the United States for studies. The allure of the U.S. beckoned, leading him to the Wichita State University, where he initially pursued industrial engineering. But an electrical engineering class caught his attention, shifting his academic trajectory, as he switched his degree from industrial engineering to electrical engineering.  

Two years later, he ventured to UC Berkeley for a brief but transformative summer school. It was here that California’s allure, with its burgeoning tech scene, captured his heart, diverting him from Wichita State. 

Thus, Anwar’s academic journey took him through three different schools, starting at Wichita State, meandering through UC Berkeley and ultimately, San Jose State, where he completed a degree in electrical engineering and computer science.

Career trajectory 

Anwar’s professional journey kicked off as an intern at Netscape, a web browser company. He worked as a quality assurance engineer focusing on internationalisation and localisation.

As a quality assurance engineer, he had been breaking and testing products to shape product experiences with different teams. “There would be bug reviews where we would sit together with the product, engineering, design and quality assurance teams, and I would have debates over how a feature should be built”, he recalled. 

That’s when something happened. It was a senior vice president who saw his potential during one such heated bug review session and encouraged him to explore the world of product management.

“One day,” Anwar narrates, “as I was having a heated bug review session one of our VPs asked me to stay back afterwards” – a moment he feared might lead to his dismissal. “To my surprise, he asked, ‘Have you ever thought about product management?’” 

“What is product management?”, I asked in response. “What you are doing now”, he replied. That vice president was Marty Cagan, a well-known industry expert in product management. 

This marked the beginning of a journey that would define Anwar’s career. “I transitioned into a role where I defined requirements, crafted customer experiences, and guided the product’s development. From that point forward, I never looked back”, he said.

The unexpected transition to product management led him to oversee technology products for platforms at Netscape. Later,  Netscape was acquired by AOL (America Online) in 1999. Netscape’s acquisition by AOL marked the start of his 12.5-year chapter devoted to security, safety products, parental controls, and authentication products. 

Anwar joined another major technology company in 2009, pivoting to PayPal where he was entrusted with the developer platform and technical integrations. This chapter spanned over six years. Subsequently, he joined Capital One, where he was tasked with spearheading agile data and digital transformation. 

And then, in 2021, he made the leap to Citi. Since joining in November 2021, his role has evolved to oversee digital and data platforms for trade and treasury solutions globally. 

Role at Citi

Anwar’s career has mostly been at tech giants like Netscape, AOL, and PayPal, which were operating in an unregulated environment. In this domain, innovation soared without the constraints of regulation. However, this is not the case with the banking sector, as it is one of the most highly regulated industries. So what prompted Anwar to switch to banking, of all sectors?

He recalled, “I asked myself a question: Could I replicate the same scale of innovation in a regulated environment?” The prospect of taking the same principles of innovation but applying them in a regulated setting and at scale was what pushed him to take up this challenge. 

“You might wonder, did I ever question my decision? Indeed, there were days of challenges. Yet, it was fulfilling. Changing the hearts and minds of regulators and educating them about the transformative potential of technology-based solutions was a rewarding pursuit.”

He added that in this era of rapid technological advancement, regulators worldwide are also recognizing the importance of embracing innovation

In his current role, Anwar is laser-focused on innovation. He and his team constantly seek ways to improve the client experience, make processes smoother, and provide valuable insights.

One significant change he and his team have introduced is design-led research. Instead of diving straight into coding, they begin by thoroughly understanding the business problem and conducting user research. “By involving design, product, and engineering experts, we ensure that we are solving the right problems in the best way possible. Our strategy revolves around assessing industry trends, competitors, and what our customers truly need”, he added.

Anwar and his team are focused on enhancing client experience. He believes that corporate clients deserve a consumer-like experience. One major focus is on speeding up the onboarding process. They achieve this by automating repetitive tasks using machine learning and simplifying user interfaces. “We are asking ourselves the big question: How do we digitise non-digital processes? How do we automate the digital ones? And how do we make it instantaneous?”, he said.

The team is now using machine learning to automate the experience by simplifying the documentation process, obtaining client information from public sources, and pre-filling forms. “This way, clients can get to business faster without the hassle of tedious form-filling.”

Citibank’s role in the digital evolution of banking 

But Naveed Anwar’s story is not just about his journey alone. The fact is, he is the global head at a bank that just so happens to have an outsize impact on Pakistan’s banking sector. 

What makes Citi unique is the fact that – among the major global capital markets players in the world – it has been in Pakistan for more than six decades. Citi opened its first branch in Karachi in 1961 and has continuously maintained its presence in the country since then. 

 It is also the only major global investment banking franchise left in the country. That cannot be said of other global financial institutions, most of which have all left Pakistan by now, with very few exceptions. Chase Manhattan left in the 1980s, Bank of America in the 1990s, and JPMorgan and Credit Suisse tried in the early 2000s, but gave up within a few years.

So if the federal government wants to issue dollar-denominated bonds to investors outside the country, the only bank with a local office it can talk to is Citi. And this is not just a theoretical capability: it is one that Citigroup has actively cultivated, having served as the government of Pakistan’s investment banker on nearly all global bond issuances, and several privatisation transactions as well.

Citibank plays a crucial role in Pakistan’s financial ecosystem, facilitating local subsidiaries of multinational companies, e-commerce companies, shipping lines, and more in conducting cross-border payments, trade financing, and cash flow management. 

It is not just its ability to offer global investment banking services in Pakistan that has given the institution an outsize level of influence in the country. It is also the fact that a majority of innovation in Pakistani banking has come from Citi.

In the early 1990s, Citibank revolutionised consumer banking in Pakistan by introducing products like credit cards, and auto loans, and expanding the mortgage market. Additionally, it localised its offerings. For instance, Citibank was the first bank in Pakistan to start issuing cheque books in Urdu. It created Pakistan’s first 24-hour customer service centre. It basically invented the concept of “priority banking” for high-net-worth clients in Pakistan.

While Citi initially focused on revolutionising consumer banking in Pakistan, it later exited consumer banking in 2012 and shifted its focus back to corporate and investment banking services for large global clients, local financial institutions, state-owned enterprises, and the government.

(Read: “Citibank Pakistan scaled back and became bigger than ever” to learn more about why the bank scaled back)

Anwar shared his vision of Citi. “At Citi, we have set an ambitious goal – to bank a billion people as an ‘invisible bank.’ We aim to embed our financial capabilities and experiences into various platforms, including enterprise resource planning (ERP) systems, treasury management systems, and e-wallets, to power the digital economy. Take an example: you take an Uber ride and pay Uber. Then, Uber needs to pay the driver – that is where Citi comes in. Our mission revolves around connecting people and creating value in this thriving digital economy”, he elaborates. 

How does Citi accomplish that? Citi has several digital products under its belt, of which two are also available in Pakistan – CitiDirect and CitiConnect.

CitiDirect

CitiDirect is akin to a user-friendly web portal. Just like a mobile bank application or a web application that enables customers to make daily transactions, CitiDirect empowers treasurers and chief financial officers to manage corporate finances efficiently. It simplifies tasks such as making payments, checking payment statuses, and even supplier financing. It’s a dashboard of financial control that echoes the convenience of consumer banking but for corporates.

So let’s say you are a multinational corporation that wants to avail transaction banking services with Citi because Citi, owing to its network in more than 90 countries, enables you to operate payments internationally. The first step is simple – opening an account, much like you would as a consumer. Once the account is open and funded, you can begin to transact globally, and see all your account information in an easy-to-use, streamlined and intuitive experience. 

CitiConnect

On the other hand, CitiConnect offers the same functionality but through seamless API (application programming interface) integration. (API is a set of rules and protocols that allows different software applications to communicate and link with each other).

Companies like SAP, and Oracle have provided ERP systems for the finance or treasury departments to manage their day-to-day operations. In CitiConnect, the Citi experience is woven into these systems through APIs. Picture this: you are sitting at your desk, using ERP, and you need to pay a supplier. Instead of taking a detour to the CitiDirect portal, you do it right here, within your ERP. 

In other words, you click pay on your ERP system, and the payment is made through your Citi account in the background. You could even set up a recurring payment schedule for your supplier. Every month, like clockwork, the specified amount effortlessly transfers from your account. You are instantly notified of the transaction, allowing you to maintain a firm grip on your financial transactions.

Let’s make it more relatable. Think of when you are shopping online, say on Daraz, and you decide to pay using your Jazz Wallet. You do not open your Jazz Cash account to make payment, instead, you enter the required information on Daraz’s payment gateway, and the amount is deducted from your JazzCash account. CitiConnect provides the same convenience but to the corporate world.

Tokenization

One of the recent initiatives launched under the leadership of Anwar is tokenization (tokenization is digital versions of coins or bills that represent real money).

Imagine a massive ship approaching a port by the border of Pakistan. Before the ship can park and unload its cargo, it has to make sure it pays all the fees required for entering the harbour. 

Now, envision a smarter way – powered by tokenized deposits and smart contracts. (Think of a smart contract as a digital agreement that does things automatically when certain conditions are met). 

Here is how it works: as the ship reaches the shores, a special digital agreement (smart contract) with a tokenized deposit comes into play. This digital agreement is like a virtual handshake. It’s programmed to do specific things automatically. It triggers a chain reaction of automated payments. 

First, it checks if the ship has paid all the necessary fees. If it has, the port authority gets its money right away as soon as the ship docks. 

But it doesn’t stop there. The smart contract also takes care of other payments, like when the ship needs to be cleaned. It makes sure that the people who clean the ship are compensated promptly, too.

With each pivotal point, payments flow effortlessly, and the beauty of it lies in transparency and traceability. There is no need for someone to carry invoices and engage in lengthy processes including bank guarantees for the payments. Besides, these payments are recorded on a secure digital ledger, like a digital notebook. This ledger shows every step of the process, and it’s really hard for anyone to mess with it. It is transparent and easy to trace.

“This is the future of financial transactions where every step is seamlessly tokenized, payments are automatic, and the entire journey is recorded on a secure ledger”, declared Anwar.

Helping clients harness the power of data

Apart from these solutions, Citi also empowers its clients’ decision-makers through data. “Data is the currency of the digital age, and at Citi, we recognize its profound value. In today’s digital economy, mere transactions no longer set banks apart; it’s the intelligence we derive from data that truly empowers our clients,” explained Anwar.

Citi empowers its clients by providing insights like in a given month, these are the types of transactions you engage in. Consequently, you should maintain this specific balance in your account. It’s not just about the past; it’s about shaping the future with data-driven decision-making. It offers real-time insights and guidance. 

“But we don’t stop there. We elevate your financial prowess with predictive billing. We don’t just tell you what’s in your account; we anticipate your needs. We reveal that, based on your typical cash balances, these are the liquidity levels you should aim for when conducting certain transactions. It’s a tailored, personalised approach, transforming data into actionable insights,” he added.

A vision for Pakistan’s digital economy

Despite his prolonged absence from working directly in Pakistan, his optimism about the country’s future remained unwavering. He pointed to the transformative impact of the gig economy, exemplified by platforms like Uber, on Pakistan’s job market and the concurrent rise in digital payment adoption. Moreover, he highlighted initiatives like Raast, which provided secure payment solutions, and the evolution of 1Link, originally an ATM network, which enabled utility payments.

“We have come a long way from the early days of the internet. Now, we are entering a new era – the internet evolution of financial services,” he remarked.

Anwar’s perspective extended beyond current advancements; he envisioned a new era in financial services driven by technologies such as distributed ledger and tokenization. This paradigm shift could potentially revolutionise the concept of money itself. He believed that central banks’ adoption of digital currencies could expand financial access, lower costs, and open new economic avenues, potentially reducing the size of the informal economy.

However, to realise this vision, Anwar emphasised the need for public-private partnerships, stressing that Pakistan was positioned to harness the benefits of the global digital economy. “Pakistan is standing at a pivotal juncture, armed with a burgeoning young generation that has grown up in a digital world. With over 190 million mobile phone users and growing penetration of smartphones, Pakistan is ripe for innovation” he said.