Citigroup is planning a hiring spree for a new wealth management unit aimed at employees of financial institutions, according to news reports.
Over the next three years, the company is planning to hire 500 people for Wealth at Work, the unit launched last year catering to employees at private equity shops, consultancies and accounting firms with the hope that they’ll translate to ultra-high-net-worth clients, Bloomberg writes.
“We acquire clients when they have more debt than money,” Naz Vahid, who heads the unit, told the news service. “We get them when they’re early in their careers, when they’re not yet wealth clients and they’re extremely busy individuals.”
“We get them young and we keep them,” she added, according to Bloomberg.
The unit posted $353 million in revenues for the first six months of 2022, which was 3% higher year-over-year, according to the news service. The division was also the only one of the firm’s wealth units to post an increase for the first half of the year, Bloomberg writes.
Vahid became head of the Wealth at Work division after overseeing the private bank’s law firm group, whose clients include 50,000 lawyers and 1,000 firms, according to the news service.
“We are already the undisputed No. 1 in the space, and we’re going to take that law-firm group model and apply it to these other verticals,” Vahid told Bloomberg.
The new unit is part of Citi chief executive officer Jane Fraser’s plans to overhaul the firm’s wealth management business, which lags behind rivals such as Bank of America and JPMorgan Chase, according to the news service.
Prior to taking over as CEO last year, Fraser already combined Citi’s wealth management and private banking segments.
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