Citigold: A passion for wealth management
MANILA, Philippines - In any event that Citibank holds for its Citigold clients, you can almost draw conclusions about where the country’s wealth is coming from.
Where only members of old-rich families may have qualified or needed wealth management when Citigold was first launched in the country in the 1990s, today, you see more and more entrepreneurs and young, hardworking professionals as part of this elite clientele of investors.
“These are indeed exciting times as we’re seeing more and more clients who at a young age have already established themselves, be it in the businesses their families are engaged in or in the industries they themselves have ventured into,” says Citibank Branch Banking director Judith Go. “Of course, for the Philippines as a country, it’s the BPO (business process outsourcing) industry that’s really booming but for individual investors, there are numerous opportunities that we are seeing — be it in the food industry where we hear of big fast-food chains acquiring smaller businesses, making those owners instant multi-millionaires or even billionaires in some cases. There are individual companies doing well in retail, food, real estate, etc. Because of the really favorable economic conditions, no one industry stands out but rather it creates numerous opportunities for everyone.”
Citigold, the wealth management service of Citibank, has seen the market and the country evolve through the economic boom in the early 1990s to the global downturn in the last part of the decade, and then again the steady stabilization in the 2000s and now the positive environment for investors.
Citibank works hard to educate Filipinos of the need for wealth management, a highly personalized banking service catering to individuals whose needs have gone beyond merely growing their wealth but are already taking on a more sophisticated approach to managing their wealth, not just to protect it but to grow it for the next generation.
Citigold regularly holds its Gold Conversation Series for its clients where financial experts and analysts give talks on global and local economies and markets. In short, the talks make sense of what market studies and research mean to investors, whether they have been investing for a long time or are new to it.
Go explains, “Gone are the days when wealth management was something just for the retirees who have accumulated enough to start thinking about how to make their money work for them. Today, we see aggressive entrepreneurs who know what they want and at a young age are able to accumulate wealth born out of their own hard work. So I can safely say that our clientele now is more diverse — it’s no longer ruled by men as it used to be. Today, there are just as many successful women as there are men in the corporate world compared to 20 years ago and the same goes for women entrepreneurs. So in terms of demographics, yes, our clientele has changed significantly.”
Citibank marks its 200th anniversary this year — a most impressive milestone in light of the crises that rocked the financial world over the last two centuries. Since 1812, the bank has been committed to helping its clients move from ambition to achievement, enabling progress on scales both large and small. That commitment comes across quite strongly in its Citigold proposition.
She says that one must have the right attitude and a mindset that looks to the future instead of just today. “It’s a matter of being ready for this type of service and having the mindset that you’re not just focusing on the money that you have in the bank but you’re already looking at your assets as a whole. Being the pioneer in the wealth management industry, we believe that for one to start considering engaging with a wealth manager, they should have at least P4million in investible funds to be able to fully maximize the services of a wealth manager. Wealth management is all about having your financial goals, planning towards achieving it, allocating your assets with your goals in mind, monitoring and re-balancing your assets if need be. It is not so much your age when wealth management becomes relevant but rather one’s mindset towards their wealth that determines this.”
Not all clients start out as Citigold clients from the outset. Some of have been banking with Citibank for many years and have seen their savings grow enough to need a personalized and professional wealth management team — and that’s what Citigold offers: an entire team dedicated to help you grow your wealth. Some are referred to by existing clients who are happy with the service they are getting and Citigold rewards this trust under its Client Referral Program. Until June 30, Citigold clients who successfully refer a Citigold or Citibanking client earn cash credits or Apple gadgets depending on how many they have successfully referred.
“This is just our way of thanking our clients who are like our Citigold Ambassadors. We believe that in terms of acquisition efforts, nothing can beat the endorsement of a happy client,” says Go.
In terms of what it brings to the table, Citigold likes thinks out of the box. It’s not just about offering products but about understanding their clients’ needs and financial aspirations so these can be turned into realities. “We place a very high premium on our relationship with our clients. We acknowledge that because of that relationship, they see us as their partners in managing their wealth and helping them achieve their financial goals. We take this role very seriously as we are very passionate about our clients’ success. This is the type of personalized relationship you can expect as a Citigold client, nothing less.”
Exactly how does Citigold manage its clients wealth? A client is assigned not one banker but a team of financial professionals that furnish him with personalized service, information and analysis on global economies, financial markets and innovative products to help him make sound investment decisions. In his wealth management team are a Relationship Manager and Investment Specialist who help him select among a global array of services to enhance the performance of his portfolio; a Service Relationship Manager who facilitates his banking transactions; a Citigold Phone Executive who is at his service 24/7.
“They will also have the benefit of a Wealth Planning Session with their Citigold Team. In this session, they will discuss the best opportunities for their clients to reach their financial goals based on thorough assessment of their goals, risk profile and time horizon.”
Go adds that Citigold has an edge to other financial institutions offering wealth management services. “Being a global bank, our Citigold clients have access to global benefits such as world-class products and research and services and exclusive rewards and privileges including access to special events such as the Citigold Gold Conversation series. We are very proud of the Gold Conversation series where aside from our regular market outlook, we also bring to our clients industry experts who can widen their appreciation for matters, which are of value and ultimately form part of their wealth. This year we’ve had an art lecture and a talk on real estate which our clients appreciated very much. Talks such as these aim to provide helpful insights so our clients can make informed decisions — not just about financial matters but also on related aspects affecting their wealth.”
Being a global bank, clients can get offshore referral services who may have the capability, capacity, knowledge, and experience to invest regionally and even globally. “Given Citi’s wide network, we are able to provide information and insights to our clients on global markets, equities, bonds, currencies and economics. It is our global presence, which allows us to have access to a wealth of information that we in turn share with our clients.”
Go stresses the importance of having a team of experts on your side to guide you in growing your wealth. Too often, even the rich are misinformed about how and where they should put their investments.
“We promote diversification as a wealth management concept but a lot of people think that by ‘diversification’ it’s literally just spreading their money across several institutions in anticipation of a just-in-case scenario. But more importantly, they should be able to spread their risk by having several asset types in their portfolio. One simply cannot just put his money in time deposits only or be recklessly aggressive and put everything in stocks. Diversification is allocating assets in different classes so it’s a balanced portfolio. Of course depending on your risk profile and the information you have at that point, you can be overweight on some asset classes and underweight in some.”
Whether or not the client has holdings abroad, “we make it a point to share this information with them because our economy does not operate in a silos — we are not only affected by what’s happening locally but we are also impacted by movements in the global economy. Having access to market information on a timely manner gives our clients the advantage of identifying opportunities in order to grow their wealth.”
Knowledge, as they say, is power and financial knowledge is gold.
