This publication brings latest news of product and service launches in the Asia-Pacific wealth management industry.

Citibank is developing a new business model for wealth management in South Korea, the US-listed bank is quoted as saying in local media.

Park Jin-hei, chief executive of Citibank Korea, reportedly told a press conference last week: “We are about halfway through our goals three years later. Rather than focusing on short-term performances, for example by increasing loans sales to boost profits, I am more focused on materialising a new banking model here.

“Our board members have allowed me to do so, and I will concentrate on meeting customers’ needs and avoid reckless growth, by which I believe we are contributing to stabilising the country’s financial system,” he was quoted by the Korea Herald as saying.

The report said Park has decided to focus on “smarter mobile banking” for Korean consumers, and opened South Korea’s largest wealth management centre in Cheongdam in the affluent southern area of Seoul. 

As part of the three-year plan, Citibank Korea has opened a five-story wealth management centre in Cheongdam-dong in Gangnam, equipped with about 70 financial experts and staffers.

(Wealth management, for the purposes of definition in this case, is not to be conflated with Citi’s private bank, which focuses on clients in the ultra-high net worth bracket, with assets of at least $25 million.)

The report did not go into specific detail about the “new business model” of wealth management. This publication has contacted the bank seeking further details and may update in due course.

In August 2012, Citibank Korea opened its first Citigold Private Client Center. Citigold Private Client targets clients with a minimum balance of KRW1 billion (around $854,000) of which at least KRW500 million are in investment assets. These are clients who would benefit from more professional investment advice than others.