Citigold targets the young rich

Citi

Thailand aims for 25% growth this year in the customer base of Citigold, a wealth management business for those with high net worth, driven by increasing demand from 30-somethings seeking a platform to help them diversify investment overseas.

Young customers are well educated and are more eager to diversify their assets beyond Thailand than in the past, said retail banking head Don Charnsupharindr.

The bank advises customers to diversify into multiple asset classes to mitigate risk, given that wild swings in the capital market are likely to continues in the second half, Mr Don said.

The bank still recommends Asian equities, as their valuations remain attractive and the US dollar’s appreciation is expected to be restrained in the medium and long terms.

To reach its target, Citigold recently launched four strategies: advisory; insightful information and research conducted by more than 400 global analysts; an expert team comprising both investment consultants and relationship managers; and privileges and benefits.

Mr Don said Citi Thailand’s high-net-worth (HNW) clients are divided into the emerging affluent segment (City Priority), defined as those with deposits or investments at Citi Thailand of 1 million baht but less than 5 million; and the affluent segment (Citigold), those with deposits or investments worth more than 5 million baht.

“Citigold customers’ gender is evenly split,” he said. “We also see a number of young generation investors [in their 30s] increasing and the average age of HNW is declining.”

The overall wealth management business expanded rapidly in 2017, at 9.7% globally and 12% in Asia-Pacific, driven by demand for investment diversification and higher returns.

Vira-anong Chiranakhorn Phutrakul, consumer business manager at Citi Thailand, said Citigold has more than 30,000 customers and the client base is expected to grow by 25% this year after a 30% rise in 2017.