Citizens Financial Group

Moat components and weights: deposit franchise and switching costs (40% weight): 60/100. Citizens has a long‑standing footprint across 14 states with sticky primary relationships, plus an emerging Private Bank that is adding high‑quality, often non‑interest‑bearing deposits.

Still, deposit betas rose across the industry, and switching is easier with digital options.

Evidence: non‑interest‑bearing demand deposits were ~37.4B out of ~174B (≈21%) in Q2 2025; Private Bank NIB mix ~34% and deposits reached ~$12.5B by Q3. Intangible assets and brand (20%): 55/100. A 190‑year heritage, but brand is not a decisive moat versus money‑center banks and fintechs.

Regulatory licenses help but are standard. 2024 10‑K notes the scale and multi‑channel capabilities. Cost scale (20%): 60/100. Efficiency ratio trending mid‑60s with room to improve as TOP 10 and ‘Reimagine the Bank’ mature; scale helps in technology, compliance, and funding costs, but Citizens is mid‑sized vs national leaders.

Network effects (10%): 40/100. Limited for traditional banking aside from capital markets distribution and private wealth networks. Efficient scale (10%): 65/100. In certain New England and Mid‑Atlantic markets, branch density and customer density discourage new entrants, but national banks remain formidable. Weighted result approximates 58.