Cambridge-trained Ms Fraser, who began her career at Goldman Sachs in London, will succeed current CEO Michael Corbat in February.
The promotion of the 53-year-old to one of the top corporate positions in the United States has been widely anticipated since she was appointed president of Citigroup last year.
She is also currently Managing Director of its Global Consumer Banking Division.
Ms. Fraser joins a small group of women who have reached the top ranks of large financial firms.
Among them, Alison Rose, who became the first woman to head a major British bank when she was appointed Managing Director of the Royal Bank of Scotland – now the NatWest group – last year.
Ms. Fraser joined Citi in 2004 and has held a number of senior positions within the company, including as Head of the US Consumer and Commercial Banking Unit and Director of its America Division. Latin.
Last year, she received $ 12.5 million in salary and bonuses, as well as a one-time payment of $ 12.5 million when she was promoted to president.
The bank explained that the single award was “in support of leadership continuity and management succession planning”.
Mr Corbat, who is retiring after 37 years at the bank, including eight as Managing Director, said in a statement announcing his appointment: “I have worked with Jane for many years and am proud that she is succeeding me. .
“With her leadership, experience and values, I know she will make an exceptional CEO. ”
Ms. Fraser said, “Citi is an incredible institution with a proud history and a bright future. I am delighted to join my colleagues in writing the next chapter. ”
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Married with two children, she has spoken publicly about the challenges of balancing her career and family life.
Asked by CNN in 2014, Ms. Fraser said, “You can’t have it all at once – you can have it all, spread over decades. ”
In a speech in 2016, she said, “I am a working mother. I always joke with my team and say that I have three boys at home: I have a 14 year old teenager, a 16 year old teenager and a 59- Age. ”
Citi, with others American banking giants, counted the cost of the coronavirus crisis on the economy – in July, it set aside $ 7.9 billion to cover the cost of the sour loans.
This provision led the company to report a 73% drop in quarterly profits.
Mr Corbat said at the time: “We are in a completely unpredictable environment… The pandemic has a grip on the economy, and it does not look likely to ease until vaccines are widely available. “