Why Citi’s global wealth merger makes sense
In creating a single wealth management platform, called Citi Global Wealth, the US bank is recognizing its shortcomings and planning for the future.
Citi’s decision to create a single wealth management unit called Citi Global Wealth makes sense on many levels.
The new division, announced on January 13, builds on the success of a scheme first unveiled in August 2020, when the US bank set out to extend its Citigold Private Client services to more Asian families – many of which were previously underserved or overlooked – with $1 million-$10 million in investable assets.
It was described at the time by Citi’s Asia CEO Peter Babej as a “phenomenal opportunity” to capture entrepreneurs when they were already a few rungs up the wealth ladder, but before they got rich.
Citi is now rolling out the scheme worldwide and its timing could not be better.
In a press release, it said Citi Global Wealth will create a single wealth management platform that pools together its global consumer banking and institutional clients group teams. The aim, it said, is to serve clients “across the wealth continuum, from the affluent segment to ultra-high net-worth clients [UHNWs]”.
The new division will be led by Jim O’Donnell, previously global head of investor sales and relationship management, and will incorporate Citi Private Banking and Citi Personal Wealth Management.