Citi to hire 500 people for new wealth unit – reports – Citywire Americas

Citigroup is planning to hire around 500 new employees over the next three years for a new wealth management unit focused on junior staff working in the private equity, consultancy and accounting industries, according to a report from Bloomberg published Tuesday.

Launched last year under the leadership of wealth management executive and 36-year company veteran Naz Vahid, the new Wealth at Work unit looks to bring in younger affluent clients with the expectation that they become much wealthier years down the line.

Vahid has spent much of her time at Citigroup managing and building out its law group division which caters to law firms, their partners and employees in a similar highly-specialized wealth management approach.

She looks to bring the same tailored approach to the Wealth at Work unit, she told Bloomberg in an interview.

‘We are already the undisputed number one in the space, and we’re going to take that law-firm group model and apply it to these other verticals,’ Vahid said.

Her coverage of the group’s law clients has included a granular strategy that takes into account payout structures, changes in income and more.

‘We know when they’re likely to buy a house, when they’re likely to begin planning for college, and more. We know the career life cycle,’ Vahid added.

However, her plan to build out the Wealth and Work unit has a larger focus on age as part of Citigroup’s approach to financial planning.

‘We acquire clients when they have more debt than money,’ she told Bloomberg. ‘We get them when they’re early in their careers, when they’re not wealthy clients and they’re extremely busy individuals… We get them young and we keep them.’

However, revenues across Citigroup’s Global Wealth Management (GWM) have remained relatively stagnant over the past year even as company CEO Jane Fraser has looked to revamp private banking, brokerage and investment advisory services across the bank.

Citi GWM’s revenue was $1.9bn in both quarters this year and did not change year-over-year according to quarterly results the group posted in July. Meanwhile, Citigroup’s total headcount for client advisors grew year-over-year by 8% to 2,869, quarterly figures showed.

Last year, the group embarked on an aggressive recruitment drive focused on hiring investment advisors as its wealth management unit incorporated a more fee-based profit model for its money managers.