Andy Sieg (Citi): "Nuestra prioridad es captar los 5 billones que nuestros clientes tienen en otros bancos"

Andy Sieg, a former Pennsylvanian, joined Citigroup in 2023 with the task of transforming one of the bank's major strategic businesses into a global powerhouse. As head of the group's wealth management division, Sieg has spearheaded a comprehensive restructuring of the high-net-worth client sector over the past three years. He has streamlined the division's structure, cut costs and personnel, and eliminated activities deemed non-essential for competing at the top tier of international private banking.

These moves have bolstered profitability and raised the division's profile, positioning it as a strong asset for the bank. Sieg's name has been linked to the post of chief executive, Jane Fraser, though his management style has also drawn attention. Citi aims to become one of the world's largest private wealth management businesses, Sieg explained during an interview in Madrid with EXPANSIÓN during a visit to discuss with clients.

The bank manages around $1.3 trillion in assets belonging to high-net-worth clients, but it aspires to achieve much greater scale and has set a target to grow organically at a double-digit rate in private banking, in line with its recent performance. Citi is targeting the $5 trillion in assets its own clients hold with other banks, Sieg said.

The bank is focusing on capturing the $5 trillion held by its existing clients in other institutions, as they represent a significant portion of global wealth. Citi works with approximately 30% of the planet's millionaires, with the average client holding over $500 million in investment balances, but the bank only holds a fraction of their wealth.

The company has restructured its private banking business after a series of bold changes under CEO Jane Fraser, who made some difficult decisions, including a shift in strategy for the division. The bank decided to sell its investment management arm, Citi Investment Management, with $80 billion in assets, to BlackRock and unify its investment and analysis teams into a single global structure.

These changes have improved the division's profitability and reduced costs, but Citi acknowledges it is only halfway to its goals. Spain will be one of the markets where Citi accelerates its growth, Sieg said, as the country continues to grow, the bank will invest and expand alongside Spain. While the bank does not disclose the exact asset figures for its private banking business in Spain, it assures that the sector is growing at a double-digit pace this year, and Sieg anticipates more private banking hires in the coming months after reinforcing the team during the previous year.

One growth opportunity in Spain is the increasing connection between the market, especially in Madrid, and the large Latin American fortunes. Citi has strong private banking relationships with many Latin American millionaire families, many of whom have close ties to Spain. As Citi builds its Spanish business, there is a strong synergy with private banking in Latin America.

Finally, Sieg rejects the recent trend of lowering the minimum net worth requirement for private banking clients, as he is concerned about sacrificing quality for quantity. Citi will maintain its strict $25 million minimum requirement for entry into private banking, focusing on serving the world's largest fortunes.