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The story is about big banks adapting to the new smart payment systems.  But it won't be smart phones, but smart cards.

Citi announced the creation of a financial technology unit that will focus on making the US bank ready for a “mobile-first future,” according to an internal memo obtained by the Wall Street Journal. The move is reportedly the first step in a company-wide reorganization that will place smartphone-based banking at the forefront of Citi’s strategy, according to PYMNTS.
The unit was designed to create a fresh mobile banking solution for Citi.

• Citi has long tried to keep itself at the forefront of banking technology. The bank launched its smartphone app in 2007, making it the first major US bank to do so.
• Citi hopes to roll out its new product to US users in late 2016. A global rollout is expected soon after.
• Heather Cox, Citi’s current head of client experience, digital, and marketing, will lead the unit. Cox was Capital One's head of card operations before moving to Citi in 2014. Last week, Capital One became the first large US bank to launch a native mobile wallet for Android users. 

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Citi is adjusting its model to reflect a significant shift in transaction activity to digital channels. In the bank’s Q3 earnings call, CEO Mike Corbat noted that Citi has closed or sold over 200 branches and plans to exit about 50 more by the end of Q1 2016. Instead, it's doubling down on encouraging customers to embrace digital channels. So far, this strategy has been successful for the bank. In Q2 2015, operating expenses fell 3% while average checking account balances rose.