According to this story in the Wall Street Journal, Citigroup announced today that they are re-organizing their wealth management division into units based on the individual client's net worth.
All of the particulars of this reorg aren't in the article, but I can infer that customers in the "emerging affluent" category with assets under $500K will get low rung service while customers at the top "ulta-high net worth" category (25 Million+) will get the best service.
This may make some sense, but it could also backfire in a bad way. Consumers at the lower end of the scale are often the ones that make the most "noise" about any business regarding the service (or lack thereof) that they receive. I would speculate that there are more 500K net worth investors than investors with 25 million + to manage- this means that if the reorg is not implemented right Citi could be driving the "cheap" droves of 500K investors to other wealth management firms.
Only time will tell...
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