Family Office

Citi Private Bank Launches Inter-Generational Website

Devina Shah, London, 12 August 2010

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Citigroup is testing a website exclusively for millionaires’ children to help them manage their allowances whilst notifying parents with alerts when money is spent too quickly, reports Bloomberg.

The site, created by money-managing software maker Tile Financial, is called “Spend Grow Give” and will allow the children of Citigroup’s wealthiest clients to logon to parent-financed accounts for spending, making investments and “one-click giving” to charities, according to the news site.

Founded by a former NYSE finance chief and Bear Stearns analyst, the site was developed by Amy Butte who believes “banks are trying to nurture relationships with clients’ children to ensure fortunes aren’t transferred to other financial advisors as wealth shifts to the next generation,” according to the publication.

“Inter-generational wealth transfer is a very big issue for the industry,” Butte added.

“It is estimated that $1 trillion in assets will shift from one generation to the next by the year 2025. Research indicates that 90 per cent of customers leave their financial advisor when they inherit,” Tile’s website states.

Spend Grow Give is available to Citi Private Bank clients, which caters to people with more than $25 million, notably a third of the world’s billionaires.

The website will allow heirs to access spending accounts linked to debit cards, craft investment portfolios in consultation with a parent’s private banker as well as donating via the one-click tool to pre-approved charities such as Rainforest Action Network and the Global Fund for Children, according to the newswire.

Citigroup, headquartered in New York, made an equity investment in the financial software maker last week, said the newswire. Tile typically charges website members an annual $150 subscription fee, Butte told the publication, declining to disclose how much Citigroup is paying.

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