Citigroup Inc., 18 percent owned by the U.S. government, is testing a website to let millionaires’ children manage their allowances, while alerting parents and bankers when scions blow through cash too quickly.
Heirs to Citigroup’s wealthiest clients can log in to parent-funded accounts for discretionary spending, investments and “one-click giving” to charities. The site was developed by Tile Financial LLC, founded by former New York Stock Exchange finance chief and Bear Stearns Cos. analyst Amy Butte.
Banks are trying to nurture relationships with clients’ children to ensure fortunes aren’ transferred to other financial advisers as wealth shifts to the next generation, Butte said in an interview. New York-based Citigroup made a minority equity investment in Tile last week, said Chris Kay, head of the bank’s Growth Ventures and Innovation unit. He declined to disclose the size or price.