Michael Corbat, CEO, Citigroup, talking on the World Financial Discussion board in Davos, Switzerland, January 21, 2020.Adam Galica | CNBCCitigroup
Michael Corbat, CEO, Citigroup, talking on the World Financial Discussion board in Davos, Switzerland, January 21, 2020.
Adam Galica | CNBC
Citigroup is making a push for buyers’ {dollars} with a brand new digital robo-advisor that is free for patrons with at the least $50,000 in deposits or investments on the financial institution.
That is the brink wanted to qualify for the financial institution’s Citi Precedence bundle of banking providers, which can quickly embody entry to an automatic investing program, in line with paperwork seen by CNBC.
This system works like most robo-advisors: Customers reply just a few questions associated to threat urge for food and investing timelines, and the software program places them right into a premade portfolio of investments. Prospects with Citi Precedence or increased standing can use this system, known as Citi Wealth Builder, for one free portfolio; those that do not qualify are charged a payment of 0.55% of property underneath administration.
Whereas Citigroup is among the many final of the most important six U.S. banks to launch a robo-advisor — JPMorgan Chase, Bank of America, Wells Fargo and Morgan Stanley have all launched one — Citigroup undercuts its rivals on worth. The banks usually cost 0.35% to 0.45% of property underneath administration.
The transfer is consistent with a broader race to zero within the retail investing world. In October, Charles Schwab introduced it was abolishing inventory buying and selling commissions, a transfer that was…