MANILA, Philippines—International financial firm Citibank recently launched a full range of innovative banking for emerging affluent clients. It is meant to serve the needs of “rapidly growing market of about 500 million individuals around the region with investible assets from US$10,000 to US$100,000.”
Consumer Business Manager for Citibank Philippines Sergio Zanatti said in a briefing last week they are “focused on capturing this market in line with their commitment to serve clients as they grow in affluence and their financial requirements evolve through their wealth journey.”
“We introduced wealth management in the Philippines in the early 1990s, and we have been very successful in this front. In 2010, we outpaced the single-digit industry performance in Asia as we posted a double-digit growth in our customer base. We are tracking that success this year, but recognize that Citigold market is a finite segment. To continue to grow aggressively, we are looking to the emerging affluent and leveraging on our leadership in wealth management to grow our client portfolio,” he added.
Citibank said it sees the emerging affluent market as a vital part of its wider growth strategy in Asia.
Citing a Credit Suisse Global Wealth Report in 2010, Citibank said that the emerging affluent market is seen as one of the fastest growing in the financial services industry in Asia, growing at rate of 12 to 15 % year on year. The revenues from this segment are expected to grow 8 to 15% per year in most countries.
Citibank recently conducted a survey of 8,000 emerging affluent individuals in six Asian countries which revealed their profiles, lifestyles and banking preferences.
Daniel Baranowski, Head of the Emerging Affluent Segment for Citi in Asia Pacific, said that in their research, they found out that emerging affluent clients want a bank “that values their time, that immediately addresses their needs, and that offers world-class digital banking services.”
Thus, Citibank’s new value proposition seeks to deliver a distinctly higher level of service along all of these dimensions and asks clients to re-think the way they bank and aspire to a higher standard, he added.
The features of Citibank’s new value proposition, said Retail Banking Director for Citibank Philippines Vipin Agrawal, include: Unparalleled access and responsiveness, full suite of global banking services, and personalized products and services.
The Call-Me-Back service, Citibank Philippines will be the first market in Asia to launch this “innovative” feature, in which clients will be called back “anytime, anywhere,” said Agrawal.
“We see emerging affluent as a key growth engine for Citibank in the Philippines and we have a two-pronged channel strategy to address the needs of this market-through a superior digital banking experience and strategic locations of Citibank and Citibank Savings branches nationwide,” Zanatti also said.
Citibank said that the emerging affluent value proposition has been launched in Singapore, Hong Kong, China and Taiwan, and will be launched across Asia in the next 12 months.