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Citigroup Consolidates Global Wealth Management Business

By Miriam Rozen January 14, 2021

Citigroup has created a single wealth management organization — Citi Global Wealth — in line with the bank’s efforts to boost revenues, according to an internal memo announcing the new business.

Citi Global Wealth is a single, integrated platform serving clients from the affluent segment to ultra-high-net-worth individuals, according to an announcement.

It unifies its wealth management teams in Global Consumer Banking and the Institutional Clients Group, and it includes Citi Private Bank and Citi Personal Wealth Management, according to the bank.

“Making wealth management a key differentiator and source of enhanced returns for Citi will be a key element of our strategy going forward,” Citi CEO Michael Corbat and Citi president and incoming CEO Jane Fraser say in a memo sent to the bank’s employees on Wednesday.

“Putting the full force of our firm behind an offering in this way is indicative of the approach we’re taking to transforming our bank,” they add.

In the memo, Corbat and Fraser say they “are seeing once in a generation wealth creation in many parts of the world, particularly Asia."

Citi Global Wealth will be led by Jim O’Donnell, the bank says. O’Donnell, who joined Citi in July 1999, was previously Citi’s global head of investor sales and relationship management. In that previous role, he was responsible for the distribution of global markets products to Citi’s equities, fixed income, currencies and commodities clients, the bank says.

O’Donnell will report to Anand Selva, CEO of Global Consumer Banking, and Paco Ybarra, CEO of the Institutional Clients Group. O’Donnell will develop an organizational design for the new business, according to the memo. The bank has not yet selected a replacement for O’Donnell’s previous role, the memo adds.

“Our clients are increasingly global in their presence and in their financial needs, and we are committed to helping them preserve and build wealth for themselves, their families and for future generations,” O’Donnell says in a statement.

Creating a unified wealth organization will help Citi deliver “the full, global power” of the bank to clients while ensuring the preservation of the products, capabilities and expertise of Citi Private Bank and its consumer wealth businesses, according to O’Donnell.

Citi will seize the opportunities created by its global footprint, capital market expertise, broad client base and “ability to source the best asset managers for our clients based on their needs rather than our own offerings,” Corbat and Fraser say in the memo.

The new business puts under one umbrella about 3,300 employees from Citi Private Bank and roughly 3,000 from the consumer wealth management units, a bank spokesperson tells FA-IQ.

The spokesperson didn’t say how many financial advisors would be employed by Citi Global Wealth.

The bank says Citi Private Bank has around $550 billion in total client business and serves more than 13,000 UHNW clients with an average net worth above $100 million. Those clients include 25% of the world’s billionaires and more than 1,400 family offices across 50 cities in over 100 countries, the bank says.

Citi’s Global Consumer Bank has around $200 billion in investment assets under management globally and serves clients in the U.S., Europe, the Middle East, Asia and Mexico, according to the bank.

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Tags:  Finding and winning new clients , Client retention , Staffing and recruiting , Investment strategies , Portfolio management , Behavioral finance , Marketing , Citi Personal Wealth Management , Citi Private Bank , Citigroup

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