(Bloomberg) — Citigroup Inc., whose U.S. wealth-management business oversees nearly $181 billion in client assets, created a new business to sell products through independent advisors as CEO Jane Fraser turned to wealthy individuals. paved the way for more money management.
“With the Citi Alliance, we will provide core banking and lending solutions to independent advisors and broker-dealers in one of the fastest growing sectors in the United States,” Jim O’Donnell, the company’s head of global wealth management, told the company on Wednesday. Investor Day.
The bank is working with InvestCloud to offer products on that company’s platform to about 150 wealth-management firms.
Fraser is charting a new course for the bank, which is underperforming its peers on key profitability measures. Citigroup is targeting growth in three core businesses — services, commercial banks and money — which it sees as high-return capabilities in those operations.
Read more about Citigroup’s Investor Day
Citigroup’s private bank has long served the ultra-wealthy, and counts as clients more than a quarter of the world’s billionaires, while the firm’s CitiGold offers $10 in assets to high-net-worth investors. Millions to complete. Now, the New York-based company is targeting the vast segment of wealthy investors between those two groups.
Overall, the firm expects a high-single-digit to low-teens compound annual growth rate in revenue in the global wealth-management business, according to a presentation Wednesday.
“We see this as a great opportunity in the months and years to come,” O’Donnell said.
–With assistance from Jenny Surane.