The decision on the part of the Citi to hire 1,500 employees in Singapore, further reaffirms Singapore’s preeminent position as a wealth hub in the region.
In addition to boosting the wealth management business, the move will help consolidate Singapore’s position as a hub of financial services.
Needless to say, that a vibrant finance service sector will facilitate business across the regions via Singapore.
Tripling assets
The new hires will help Citi’s plans to triple its assets under management and enhance wealth clients by two and a half times by 2025.
Furthermore, Citi also adds its headcount in Hong Kong, another “wealth hub” that it is focusing on in the region.
It plans to hire about 2,300 new employees in Hong Kong and Singapore and that includes 1,100 relationship managers and private bankers.
The American banking group announced last week that it will pull out itself from 13 consumer banking markets in Asia and Europe due to the lack of scale to compete and will focus on wealth management.
These markets are Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam.
Citi will focus its global consumer banking business on four markets, namely, Singapore, Hong Kong, London and the United Arab Emirates.
Chief executive Jane Fraser said last week that with the refresh of its strategy, the bank will “double down” on wealth management where the growth opportunities are better.
Besides its plan, Citi intends to invest in “cutting-edge technology” in both Hong Kong and Singapore, the bank said in a press release on Monday.
Citi said that refreshed digital value propositions, such as a new mobile banking experience with enhanced wealth management tools, have helped to drive “significant” client momentum and growth in Asia Pacific in recent years.
Last year, it recorded more than US$20 billion in net new money inflows across the region, marking a record year for its global wealth franchise.
“The Asia Pacific wealth market stands out in its scale and growth potential. And this is not a cyclical opportunity – it is structural, driven by the emergence of a vast middle class and the rapid development of regional capital markets,” said chief executive for Asia-Pacific Peter Babej.
“Along with macro-level asset growth, Asian customers increasingly require portfolio advice, design and allocation geared toward diversification of asset types and geographic exposures,” he added.
Singapore is already home to Citi’s biggest wealth advisory hub around the world and expects to serve about 150 clients a day. Citi currently employs about 8,500 people in Singapore. Diversification and the spirit of innovation has made Singapore a vibrant business hub with Citi’s contribution, Singapore will continue to serve the region, creating and managing more and more wealth.
