Advisor360° Wins 2025 WealthManagement.com Award for Digital Onboarding Innovation

Advisor360° has won the 2025 WealthManagement.com Industry Award for Next Generation Digital Onboarding. Their Digital Onboarding capabilities, Account Transitions, help accelerate advisor transitions to new firms by uploading client account data, automating error detection, and drafting new account information. The platform strengthens the firm's competitive position and minimizes disruption for clients. This is Advisor360°'s third Wealthies Award for Digital Onboarding.

In a significant move that underscores the evolving landscape of wealth management, Citigroup (Citi) has partnered with BlackRock to outsource $80 billion in client assets. This collaboration, set to launch in Q4 2025, is a testament to the industry's shift towards cost reduction, technological integration, and specialization.

The partnership aligns with broader trends in the financial sector, with 73% of managers citing cost reduction as a primary reason for outsourcing, according to a report by Reuters [1]. By delegating investment management to BlackRock, Citi is refocusing its wealth management unit on client advisory services and financial planning, areas where personalized expertise remains irreplaceable. This strategic move allows Citi to leverage BlackRock’s extensive capabilities in managing core, opportunistic, and thematic strategies across various asset classes.

The integration of BlackRock’s Aladdin Wealth platform into Citi’s operations is expected to boost data insights and portfolio management efficiency, further reducing operational friction [2]. This technological synergy is part of a broader industry trend, with 72% of asset management firms adopting AI and cloud computing to streamline data storage and decision-making [1]. The partnership also reflects the growing reliance on AI-driven tools, with 43% of mid-tier asset managers adopting AI-enabled software to enhance trading accuracy and reporting [1].

In addition to operational efficiency, the Citi-BlackRock deal is a strategic bet on long-term asset management trends. BlackRock’s involvement in managing Citi’s $80 billion portfolio includes exposure to private markets, a sector where the firm aims to raise $400 billion by 2030 [1]. This aligns with a broader industry shift towards alternative assets, such as private credit and hybrid funds, which are gaining traction due to their potential for higher returns and diversification [3].

The partnership highlights the growing importance of specialized asset managers in navigating complex markets. As noted by BCG, asset managers are increasingly outsourcing noncore functions like mid- and back-office operations to focus on core competencies [2]. This trend is particularly relevant in private markets, where expertise in due diligence and long-term capital allocation is critical.

The Citi-BlackRock collaboration sets a precedent for how banks and asset managers can collaborate to stay competitive. For Citi, the move is part of CEO Jane Fraser’s broader restructuring efforts to enhance profitability and operational resilience [4]. For BlackRock, it solidifies its position as a dominant player in global asset management, with the firm now overseeing a portion of Citi’s $635 billion in client investments [1].

The Citi-BlackRock partnership exemplifies the convergence of strategic operational efficiency and long-term asset management innovation. By outsourcing $80 billion in assets, Citi is not only reducing costs but also future-proofing its wealth management division through access to BlackRock’s technological and investment expertise. As the industry continues to prioritize specialization, automation, and alternative assets, this collaboration serves as a model for how traditional financial institutions can adapt to an increasingly dynamic market.

References:

[1] BlackRock to run $80 billion for Citi as bank refocuses wealth unit [https://www.reuters.com/business/blackrock-run-80-billion-citi-bank-refocuses-wealth-unit-2025-09-04/]
[2] Citi to Deliver New Customized Portfolio Offering Powered... [https://www.citigroup.com/global/news/press-release/2025/citi-customized-portfolio-offering-blackrock-citi-wealth-clients-globally]
[3] 2025 investment management outlook [https://www.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/investment-management-industry-outlook.html]
[4] BlackRock to run $80 billion for Citi as bank refocuses wealth unit [https://www.marketscreener.com/news/blackrock-to-run-80-billion-for-citi-as-bank-refocuses-wealth-unit-ce7d59d8da89f125]