Citi Embraces Robo-Advising With New Citi Wealth Builder

Need to Know 

• Citi has launched Citi Wealth Builder, a new low-cost digital investing platform.
• The app was developed in partnership with Jemstep, a fintech firm that specializes in robo-advisor products
• With over 200 million customer accounts, Citi joins a number of other banks and apps offering automated investing services.

Analysis 

Citi bank has launched a new digital investing platform with an initial investment of just $1,500. 

Citi Wealth Builder is an easy-to-use, low-cost investing platform that works with new and existing clients to start investing and meet their retirement goals. 

With no advisory fees and an initial investment of just $1,500, customers can start investing in a matter of minutes. The new app matches customers to one of six portfolios based on their responses to questions such as their level of comfort with market volatility or their retirement goals. 

If a Citi account has over $50,000 in assets with the bank, the first Wealth Builder portfolio will be free. Beyond that, each account will hold a 0.55% advisory fee.

Citi Wealth Builder then automatically manages and monitors the customer’s diverse portfolios. Customers can adjust their investment levels with a real-time look at how any changes may affect their goals. This is the robo-advising aspect of the new tool—Citi will automatically manage portfolios and make changes depending on the customer’s risk levels.

Customers can also work with Citi’s wealth advisor product, a financial planning tool that pairs helps Citi customers with an advisor to help create personalized financial roadmaps designed to grow their wealth. 

Citi Wealth Builder was developed in partnership with Jemstep, a fintech firm that specializes in robo-advisors. 

“Jemstep is proud to partner with Citi to provide personalized, goal-based wealth advice to their clients,” said Jemstep President and CEO Simon Roy. “We have worked closely with Citi to configure the Jemstep digital advice platform to provide a compelling client experience that supports Citi’s unique value proposition, omnichannel delivery capabilities and robust operational and compliance requirements.”

While Citi is one of the world’s leading banks, with over 200 million customer accounts in over 160 countries, they are not the first to launch a digital investment app of this nature. 

Toronto-based Wealthsimple broke ground in 2015 with the launch of one of the first-ever digital investment apps. Goldman Sachs made headlines just last week when the bank announced the launch of a digital wealth management tool, available through its Marcus app. Today, other apps such as Acorns, Robinhood, and Wealthbase all provide a safe place for new investors, offering a little something different for everyone. 

It sounds like the launch of Citi Wealth Builder is the next step in a digital transformation for Citi. 

“Citi Wealth Builder makes it easy for clients to start investing so they can reach the next level of their financial journey,” explains John Cummings, Head of Citi U.S. Consumer Wealth Management. “It’s part of Citi’s holistic approach to banking and wealth management. In just a few minutes, customers can start building a solid foundation for years to come.”

And a digital approach is a good strategy to use: 63% of American smartphone users have at least one financial app.