Global financial services giant Citi Group is planning to boost the presence of its Sydney-based securities services team, as it onboards a suite of new custody clients.
Citi is expecting to build out its Sydney footprint after it finalised a client transfer agreement with the Royal Bank of Canada which sees clients of RBC transition to the global bank's local securities services arm over the next two years.
At the end of the process, Citi anticipates its market share will have grown such that it is one of the leading custodians in the Australian market. Its clients will stand to benefit from the eventual sheer scale of the bank's local asset servicing arm, it said.
"Citi provides clients with in-depth local market expertise, advanced processing technologies and value-added services, like data management, in-house unit registry and ETF servicing," Citi Australia head of securities services Martin Carpenter said.
To service its new suite of clients, Citi will also take charge of a number of RBC's Kuala Lumpa-based employees, which will boost the bank's regional operations site in the Malaysian capital.
"In addition to working with new clients, we look forward to welcoming a large number of new employees to Citi, and the added operational scale will be of great benefit to our new and existing clients," Carpenter said.
Citi said its newly-boosted Sydney team would complement the bank's "strong existing presence in Melbourne".
"This transaction reflects Citi's ongoing investment and commitment to the Securities Services business both globally and locally," Citi regional head of custody and fund services Julie Kerr said.
"Australia is a targeted growth markets for Citi's Custody and Fund Services business."
RBC general manger Andrew Allen said the bank was proud of the business it had established in Australia, but noted the complexity of the local market made it "difficult" for RBC to grow to the local operation to the size and scale "required to deliver meaningful value for our shareholders and clients".
"We consider that it is in the long-term interest of our clients and employees to seek a transfer of our business to an organisation with a client focus and strong offering in the market," Allen said.
Recently, Citi appointed former Westpac had of strategic initiatives, digital and marketing Ketih Miranda as its new head of investment partnerships.
Miranda's new role will see him responsible for promoting Citi's wealth management business, which sits within its retail banking arm. In 2019, the division grew its assets under management by 32%.