Citibank finds success through trustee services
![Citibank Korea has seen significant success in the trustee services market. [CITIBANK KOREA]](https://koreajoongangdaily.joins.com/data/photo/2022/05/23/1d221ca4-7241-4d2f-810b-6a2f234103c0.jpg)
Citibank Korea has seen significant success in the trustee services market. [CITIBANK KOREA]
Citibank Korea is gaining attention with its remarkable growth in the trustee services market.
As of the end of April 2022, Citibank’s assets under custody growth has exceeded 11 trillion won ($8.7 billion) on-year, according to data provided by Korea Financial Investment Association.
With a successful institutional client-focused strategy, the bank’s growth has stood out among custodian banks with a robust 46 percent growth rate in its assets under custody. The data shows that assets under Citibank surged from 25.2 trillion won at the end of April 2021 to 36.7 trillion won this year.
A Citibank representative said that the bank greatly benefited from a strategy that focuses on overseas investment trustee services amid rising volatility in the stock and bond markets.
The bank endeavors to take the lead in the overseas exchange-traded fund (ETF) market and is coming to the fore in the industry by handling over 70 percent of overseas ETF assets.
According to asset management companies, private equity fund-related incidents that occurred in the past few years such as the Lime and Optimus fund scandals have led to stricter standards for trustee bank appointments.
Thus, banks have put effort into building and strengthening their infrastructure.
While most banks have seen improvement in sales with their efforts, Citibank stands out with its strong global network and disciplined regulatory compliance processes.
“Citi has strived to effectively utilize its internal infrastructure that has direct access to around 70 markets overseas and revamp its regulatory compliance process,” said KyoungHo Kim, head of Korea corporate banking at Citibank. “I believe our success in the trustee services market stems from our strategy of focusing in areas where we can differentiate ourselves with our superb capability and advantages while enhancing work efficiency through continuous process automation.”
BY HAJIN KIM [kim.hajin@joongang.co.kr]
with the Korea JoongAng Daily
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