Kuala Lumpur, Malaysia Citibank aims to capture about 10 percent of the emerging affluent market share in Malaysia over the next four years with the launch of a new and improved comprehensive set of services tailored for its emerging affluent consumer banking clients. In Malaysia, the emerging affluent market comprises some 1.2 million individuals with an annual income of RM48,000 to RM180,000 or equivalent investible assets.
It is estimated that in Malaysia, these clients account for 15 percent to 20 percent of the total consumer financial services revenue pool (or $1 billion to $1.5 billion of the $7 billion market), and revenues from the segment are growing at 10 to 15 percent per annum.*
To develop Citibank’s new emerging affluent value proposition, extensive research was conducted across seven Asian markets, including Malaysia. The research focused on clients’ banking preferences, financial needs and lifestyles. In Malaysia, 150 individuals were surveyed online, and extensive focus groups were also conducted. The research revealed that Malaysian emerging affluent consumers are:
The launch in Malaysia is an integral part of Citibank’s strategy to serve clients across the entire wealth continuum, giving each segment a customized proposition as they grow in wealth and sophistication of financial needs.
“We understand that the emerging affluent segment is one that is growing and is very aspirational. This segment continues to challenge the way traditional banking is conducted and increasingly want a bank that values their time, makes things easier for them and addresses their needs, immediately, locally and globally,” said Fabio Fontainha, Consumer Markets Head for Citibank Berhad.
“With the launch of our new value proposition, we want to provide customers with increased convenience and responsiveness, a full suite of global banking services and personalized products to meet their financial needs, in addition to allowing them to share the benefits that come with a global banking partner,” he added.
Key details of the new value proposition include:
“The emerging affluent segment is a top priority for Citibank across Asia. Emerging affluent people are well educated, upwardly mobile, and early adopters of technology. They are very focused on their personal and financial futures and have high expectations for themselves and for their banks. Our new value proposition seeks to deliver a distinctly higher level of service to support all of their banking needs and asks clients to “rethink” the way they bank and to aspire to higher standards,” said Daniel Baranowski, Head of the Emerging Affluent Segment for Citi in Asia Pacific.
*McKinsey, Citibank Analysis
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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