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08.05.2008 /Investing
 Russians more concerned with the protection of their savings than growing their wealth
Citi introduces a new first in the market solution to help Investors diversify to guard against financial uncertainty
Moscow, April 10, 2008 - ZAO Citibank today presented its new investment solutions for Russian affluent clients, allowing individuals to invest in international assets with as little as $10,000. Citibank also strengthens its Citigold program by introducing unique Global Access privileges for customers who travel abroad.
Citibank is also expanding the lifestyle part of Citigold program, by introducing unique Global Access privileges. "Global Access" is the concept developed specifically for Citigold clients around the globe and offers complimentary privileges to those of them who travel abroad.
Citigold customers can call 24X7 phone line from 40 countries and do all banking transactions at the cost of local call. If Citigold customer loses his debit card abroad he can get "Emergency cash" of $2000 from select branches world-wide. When Citigold customer is traveling on business he can access 537 Citibank branches world-wide for conference rooms, business amenities etc.
These new product are based on a recently conducted Citibank research which analyzed how Russian affluent customers manage their wealth. Research indicated that protecting their money matters more to customers than growing it. This stems from fears of insecurity of their savings, caused by turmoils in Russian banking industry - f banking crisis, devaluation and hyper-inflation. As a result, customers usually invest only for 1-3 year periods or even less, diversifying their savings by investing in real estate and deposits only. Majority of affluent clients try to achieve liquidity by keeping a significant portion of their money in cash or safe box. Majority of them lack knowledge about other investment products and the need to diversify their investments beyond property and deposits to enjoy a steady return.
Common stereotypes for this segment is the belief that tangible assets like real estate is the most risk-less and profitable investment and that real diversification is possible only with substantial amount of money (over $ 1 MM).
After implementation of new changes in the regulations effective from January 2008, Citibank customers in Russia can achieve strong diversification by investing in widest range of assets brought by World's Top Fund managers with just $10,000 and leading local funds with just $2,000. And they would not need to open an offshore account, since it's available locally thru an account with Citibank.
Citibank's research also indicated that that the majority of affluent customers travel abroad up to 6-7 times per year on business and on average 2-3 times a year on holidays with their family. More than 63% of Citigold customers call Citigold Citiphone service from abroad.
Joel Kornreich, Head of Citibank Consumer business in Russia, noted: "The only way to protect and grow money is by investing in diversified assets. With the addition of International Wealth Management, our affluent customers can have access to widest product range in Russia. This, coupled with our trained financial advisors, world-class research and sales process, would enable our affluent customers to protect and grow their money effectively."
Kumar Ramachandran, Retail Banking Business Manager, Citibank, said: "Citibank is the leading provider of consumer investment services to the mass affluent segment in Russia through its Citigold package and is one of the biggest distributors of local mutual funds and structured investment products in the market. This new range of investment opportunities further strengthens the position of Citigold as the most attractive premium account in Russia today.
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