Memo: Citi shakes up leadership after $136 million in fines for data quality issues

“Over the last few months, we’ve been clear that our Data efforts have expanded significantly from our original plan as we’ve progressed the work,” said the memo, signed by Ryan and Selva. “We’ve also been clear about our need to accelerate our progress in this area and, consequently, we’ve committed to dedicating additional resources to it.”

Citi has spent a massive amount of resources on a firmwide initiative to appease regulators. According to earnings reports, the head count for the so-called “Transformation” program has soared to 12,000 from some 3,000 since 2021. Citi spent at least $7.4 billion on the endeavor from 2021 through 2023. The bank is now hoping fresh blood will help right the ship.

Here are the new leaders

Ryan joined Citi in June from PricewaterhouseCoopers where he ran its US business for seven years. He was in the running to become global chair and lead the consulting giant until he announced his decision to retire in October.

He was brought on to modernize Citi’s tech and simplify its processes. The bank is known for its outdated technology and patchwork systems. One of its biggest blunders is the accidental transfer of $900 million to Revlon lenders due to outdated technology.

The memo touts Ryan’s “extensive experience implementing large-scale technology projects,” which includes a digital transformation at PwC.

“Data and technology are intrinsically linked and the maturity and sustainability of our Data Transformation plan require that we leverage technology more,” the memo reads.

Citi is also appointing a new leader to run its Chief Data Office: Ashutosh Nawani, who previously led enterprise risk management. Nawani will report to Ryan and serve as head of enterprise data office and data transformation. He was a partner at PwC in London, leading its financial risk advisory practice, before joining Citi in 2021.

Citi’s current Chief Data Officer, Japan Mehta, will move to a new role after Nawani “transitions into his new role over the coming months,” the memo said. His future role was not specified.

Selva’s rocky tenure as COO

Selva is a Citi lifer who started with the bank in 1991 in India and rose the ladder to run consumer banking in Asia. In 2018, he moved from Singapore to New York to run the US consumer bank, reporting to Jane Fraser. Selva succeeded her as global consumer banking chief in 2021 when she was made CEO.

Selva was made COO in March 2023 and tasked with the Transformation program. Despite Ryan’s new involvement, he is still in charge of the sprawling initiative and the bank’s controls and operations.

This past May, Selva and the bank were sued by a former Transformation executive, Kathleen Martin, who served as interim data transformation chair.

According to the suit, Selva, pressured Martin to hide information that would make Citi “look bad” from the OCC. After repeated refusals, she was fired in September 2023. Mehta became chief data officer the following month.

Citi denies the accusations and filed a counterclaim in late August, alleging Martin was fired for underperformance.