The Citigold standard
MANILA, Philippines - Looking at the long list of awards Citibank Philippines has received in recent months, one wonders no longer why this foreign bank is the preferred bank of wealthy Filipinos, or why it has such a high recognition rate in the country (80 percent or eight out of 10 consumers know Citi).
To tick off the list: Citi won seven regional awards from Euromoney, Global Finance, Asiamoney, and Trade Finance including Best Regional Bank in Asia, Best Global Cash Management Bank, Best Bank for Liquidity Management, and Best Overall Trade Finance Bank. In the Philippines it won 13 awards — including Best Domestic Cash Management Bank, Best Consumer Bank, Gold Award for Cards Busines, Best Foreign Investment Bank, Best Trade Finance Bank and Most Outstanding Consumer Bank — given by institutions as diverse as Reader’s Digest in its Trusted Brands awards and Consumers Union of the Philippines.
Sanjiv Vohra, country head and Citi country officer, says, “One advantage that has been underlined consistently is our ability to provide information on global markets, with our access to 300 analysts, covering some 2,600 companies in over 50 countries and 140 industries worldwide. So whether it’s information on equities, bonds, currencies, or economics, our clients can rely on us to provide them with thorough research.”
Vohra explains that Citi’s access to this wealth of information helps its Filipino high-net-worth clients make informed financial decisions. “This is relevant to our clients because economies do not operate in silos — portfolios are not only affected by what’s happening locally but are also impacted by movements in the global economy. I am proud to say that Citi’s research as well as advisory proposition remains unmatched by any local, regional, and global competitor. And it’s not just information, which thanks to today’s advances in technology can be available to the public from the Internet and all other real-time news streams, we also bring to the table market insight as well as timely and relevant advice to help our clients take advantage of opportunities and turn these pieces of information into profit.”
Who are Citi’s top clientele and what does it take to be a Citigold client? A Citigold relationship begins at P4 million, an amount that Vohra explains is the ideal size of liquid assets for a client to be able to take full advantage of the bank’s wealth management services. And it begins with a personal wealth planning session. “With at least P4 million, the client is in a better position to make the best use of our services, which include customized financial planning and portfolio tracking.”
Vohra explains the basics of wealthy management: “Simply put, wealth management is a highly personalized and sophisticated banking service. It caters to individuals whose needs have gone beyond merely growing their wealth but are already taking on a more complex approach to managing their finances. This would mean not only protecting it, but also growing it, and not just growing it for their own use but also for the next generation.”
Speaking of the next generation, the Philippines has always been a country where the real wealth is concentrated on a handful of families who have grown it through generations, but we are also seeing today a new breed of entrepreneurs who have made their wealth in this generation or the last through entrepreneurship.
Vohra agrees that the new wealthy are changing the culture of the affluent. “The ‘new wealthy’ are different compared to the ‘old wealthy’ in several ways. One, the new wealthy are open to new and innovative ways of doing business — Internet, trade fairs, going regional/global. Two, they are more open to taking risks, trying new strategies compared to just sticking to the tried and tested. Three, the new wealthy respond to targeted marketing and are spending more. Of course, these are general trends and there are always exceptions to the rule.”
It’s the same trend for second and third-generation entrepreneurs, who are leading their industries more aggressively — diversifying their holdings in different and sometimes unrelated industries — than their grandparents or parents but at the same time are professionalizing the companies they have inherited to see bigger growth. “Gone are the days when a family corporation is run like a small enterprise managed only by the members of the family. This is good in the sense that it secures the future of the businesses established by the previous generation.”
Vohra believes that given the prevailing economic landscape and the new breed of business leaders who have taken note of the lessons from two financial crises — the Asian crisis that gripped the region in 1997 and the global slowdown starting in 2007 — Citibank is positioned to give the expertise to guide its clients in managing their holdings.
“Our global presence is a big plus,” he says. “We are in more than 100 countries, with over 4,000 Citibank branches worldwide. We can leverage on our global footprint for our clients in a number of ways; whether it’s providing up-to-date information on global markets, or helping them access global investments, or simply making it convenient for them to bank wherever they may be. We also actively engage our clients. We initiate regular portfolio reviews and then there is the Gold Conversation, which covers events where we share updated market outlooks, introduce new products, or simply come together to celebrate milestones during the year. We consistently receive positive feedback from clients on Gold Conversation initiatives, saying they appreciate the effort we put in towards educating them about the markets and how they can better manage their portfolios.”
Launched in 1984, and in the Philippines the following decade, Citigold was the first to offer wealth management services in the country and has served generations of high net-worth clients.
“There are many things that differentiate the Citigold proposition but one thing I want to highlight is the premium we place on relationship,” says Vohra. “At Citi, it’s not about pushing a particular set of products to our customers, but understanding their needs and wants and helping them develop a plan to turn these dreams into realities. Everything we do in Citigold is in support of our clients’ financial aspirations.
“Our Citigold clients do not just get one banker — they get an entire wealth management team. It starts with a Relationship Manager who will take the lead and pull the team’s effort to help our clients better manage their financial portfolio. They will be assigned a Citigold Associate who will assist them in their day-to-day banking transactions and an Investment Specialist, who will work with their relationship manager to offer them a range of investment tools and products best suited for their needs, risk profile and time horizon.”
Apart from the Relationship Manager handling the client’s day-to-day banking needs, the team periodically updates him on his portfolio holdings. In the region Citigold clients can do their private banking in 230 Citigold Centers in 12 Asia-Pacific countries.
How is Citi different from other foreign and local banks in managing its clients’ wealth? “One of our marketing campaigns summed it best so let me quote it here: ‘We are passionate for our clients’ success.’ We consider ourselves their partner in managing their wealth, and in helping them achieve their financial goals. This involves a careful blend of thorough planning, setting realistic goals, matching appropriate financial products, providing relevant information and driving an ongoing discussion to monitor their financial portfolio.”
Vohra adds that whether there is a crisis or not, expert financial advice will always be in fashion. “In good times and in bad, clients demand optimum returns on their investment. It is, in fact, the current economic environment that creates a need for wealth management banking, as customers are now looking at ways to preserve and grow their wealth, more than ever.”
But growing one’s wealth is not just about depositing it in a bank and hoping interest rates would miraculously shoot up. Many Filipinos mistakenly interchange wealth “preservation” with “management.” Vohra characterizes the wealthy Filipinos who handle the majority of the investible funds in the Philippines as “conservative.”
“If you take a closer look, deposits comprise more than 90 percent of these holdings. We’re still looking at the usual savings and current accounts, time deposits and special deposit account, all of which are deposit products that simply come by other names. From a wealth management perspective, this type of portfolio is ideal only for those who wish to preserve their wealth, but not if you want to grow it. Interestingly, when asked, they will tell you they want to see their wealth grow at a more aggressive rate. That’s where Citigold steps in — to bridge the disconnect between risk and reward. Periodic financial planning sessions are there to guide clients through their financial needs, goals, risk profile and time horizon. All these will be taken into consideration before a recommended asset allocation can be done — and hopefully they end up with a diversified and better yielding investment portfolio.”
Vohra says that the global slowdown has made many investors cautious of where to put their money and that is to be expected — “a conservative outlook in the short term with primary focus on really just protecting and safeguarding their assets at this time. But then, there are always opportunities in any cycle and we are here to help clients navigate through the crisis. Of late, we noted that the pendulum of investor expectations appears to have swung the other way. There is growing confidence in economic recovery and in fact anticipating that we are nearing the peak of the recovery momentum, they are now taking positions to profit from the upside.”
And that, for many investors, is news as good as gold.
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For inquiries about Citigold, call the Citigold hotline at 995-9888 (Metro Manila), 234-9888 (Cebu). Abroad, call the toll-free number that connects you from anywhere in the world to the Citigold hotline in the Philippines at 1-800-CITI CODE (1800-2484-2633)
