MANILA, Philippines - US financial giant Citi is aggressively reaching out to the growing young and affluent market in the Philippines and the rest of emerging Asia, estimated to number over 500 million individuals.
Specifically, these are Asians, aged from 20 to 45 years, with a net worth of between $10,000 to $100,000 and in search of places to invest their expanding wealth.
In a press briefing yesterday, consumer business manager for Citibank Philippines Sergio Zanatti said this segment of Asian society will be the future affluent population that will eventually dictate the region’s economy.
“They will also be prime candidates for Citigold,” Zanatti added. Citigold is a wealth management product aimed at millionaires.
For the Philippines and the rest of emerging Asia, the emerging affluent segment of society comprise 12-15 percent of the region’s population, and is forecast to expand between eight to 15 percent per annum.
Citi Asia Pacific emerging affluent segment head Daniel Baranowski said the Philippine market has a potential market worth over $3 billion, or some 30-40 percent of total revenue stream.
“It is attractive as it has a potential revenue stream growth of 10-12 percent per annum,” Baranowski told reporters.
In 2010, Citi outpaced the single-digit industry performance in Asia, posting a double-digit growth in its customer base.
“We are tracking that success this year,” Zanatti said. “We are looking to the emerging affluent, and we are leveraging on our leadership in wealth management,” added Zanatti.
“These clients are living increasingly global lifestyles and want a bank to support them with their international banking, traveling and investing needs. Our 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,” Baranowski explained.
The Asia Pacific region accounts for a record 332 people making the Forbes list of the world’s richest in 2011, up from 234 a year ago. Three quarters of Asia’s 105 new billionaires got the bulk of their fortunes from stakes in publicly traded companies.
Citibank is the leading consumer bank in Asia Pacific with over 31 million retail and card customer accounts and has pioneered the use of internet and mobile banking across Asia. In 2010, Citi’s Asia consumer unit was the largest for Citi globally, generating $2.1 billion in net income or around 20 percent of Citi’s global net income. Citibank is the largest wealth manager in Asia Pacific with over $185 billion assets under management.