Beth Johnson has worn many hats in the 10 years she has worked at Citizens Financial Group, including leading the bank's direct marketing efforts, orchestrating home and small-business loan programs and expanding into new markets, including New York City. Last year, Johnson took on another major role as head of the bank's environmental, social and governance initiatives (ESG).
"The first focus for us is governance, which means that we are thoughtful about having safe and sound banking practices," Johnson said. That not only means having comprehensive risk management practices in place, but also ensuring the bank is providing opportunities for advancement to its employees through things like career development and education programs.
As for the environmental component, Johnson is focused on training bankers in Citizens' commercial and small-business divisions "to have real conversations with their clients about what they think about a transition to a greener economy and what it means to them." For example, Johnson said Citizens would like to see its clients answer questions about how their supply chains affect the environment.
Citizens has also rolled out a carbon offset deposit account for its clients, she said.
Johnson also helped spearhead a loan program for small businesses with yearly earnings of less than $1 million, and a home refinancing initiative for borrowers with low to moderate incomes. And, as part of the bank's obligations under the Community Reinvestment Act, Johnson oversaw the disbursement of $2.1 billion in loans toward affordable housing and economic revitalization in local communities and $2.3 billion in loans to either small businesses or businesses located in low- to moderate-income communities. According to Citizens, these efforts resulted in $50 million in net income and $1.1 billion in loans and investments for the bank in 2022.
Johnson has led Citizens' marketing efforts since 2015. But she describes herself as a math person by training, not a marketer. She spent 15 years at Bain & Company focused on local risk management and interest rate derivatives.
One way that Johnson has used data to inform her strategy at Citizens is with the rollout in New York City, which began in 2021. Johnson anticipated that Citizens might never be able to grab the Big Apple market share of a JPMorgan Chase or Citigroup. But she used data to identify underbanked neighborhoods where Citizens could make inroads.
Citizens kicked off its New York City launch with the Living Portrait of NYC, an interactive exhibit that included facts about the city and invited New Yorkers to share their experiences. Based on survey data, New Yorkers responded positively to the exhibits and developed positive associations with the bank, Johnson said.
Citizens has since launched a Chinatown Renewal fund, doling out grants to 22 minority-owned small businesses in the Manhattan neighborhood. In the city's Little Ukraine neighborhood, Citizens commissioned a mural by Ukrainian artist Misha Tyutyunik and donated money to the Ukrainian National Women's League of America.
"It's good for us from a community perspective, but also we got business from it," Johnson said of the Little Ukraine effort. "Some of the local businesses were really attracted to something that mattered to them."
Citizens declined to say how many New York consumer and business clients it has picked up since expanding into the city, but it described the launch as its "largest growth initiative in over a decade."
