Citizens Financial Group unveiled plans to launch a private bank later this year at the Barclays Global Financial Services Conference in New York City Monday.
Citizens Private Bank will offer personal banking, mortgage and retail lending, wealth management and business and commercial banking to individuals with $10 million or greater net worth and those who have more than $5 million in liquid assets.
Citizens Private will also target HENRY clients – high-earners-not-rich-yet – whose incomes, between $250,000 and $500,000 annually, poise them for potential future wealth.
With New York, Boston, South Floridamand California as its geographic focus for private banking, the firm has hired approximately 50 senior bankers and 100 support staff, as well as additional talent.
Consumer banking chief Brendan Coughlin said at Monday’s conference that the bank "will be grounded in offering a world-class, extraordinary customer experience," according to American Banker, which first reported on the launch.
Citizens’ focus on wealthy clientele has grown in recent years. Following its purchase of Clarfield Financial Advisors in 2018, it acquired Paladin Advisors in 2022.
"We've made no secret about our desire to continue to grow our wealth management franchise over the last few years," Coughlin said, according to American Banker. "We aim to bring together the breadth of the bank … to the client in a single, integrated client experience."
Citizens was one of multiple banks that scooped up former First Republic Bank private bankers this spring following its collapse in April.
“These teams have a demonstrated track record of delivering a truly differentiated white glove client experience that is second to none, which will create long-term customer loyalty across attractive growth areas,” Coughlin said at the time.
The bank also launched a private-client card later this spring.
Citizens Private Bank is scheduled to launch in the fourth quarter. While quarterly expenses during the 2023 buildout are expected to be about $40 million, break-even is expected by mid-2024 and fiscal year 2024 is expected to be accretive.
