He will also be invited to selected events, such as a golf event. In March, for example, HSBC sponsored the Indonesia Open 2006, a prestigious golf tournament participated in by world-class champions. According to Ravi Sreedharan, such offers are effective in maintaining customers’ loyalty and at the same time luring new customers to the premium program. HSBC has 12,000 customers in this premier program. The number of customers grows at an average of about 30 percent annually.
“HSBC’s premier customers,” Ravi said, “need more than just rewards, which the bank usually promises. It is their right to enjoy an exclusive and international-standard service, but they also deserve to enjoy a series of investment and banking products specially created to meet their needs. That is why a HSBC relations manager assists premium customers regarding all their banking needs. A relations manager not only appreciates a premium customer but also understands his individual needs.”
Also seeing the opportunity, Standard Chartered Bank launched a similar product, called Wealth Management Account, in September last year. This product, which is an extension of the Priority Banking service that the bank introduced in May 2001, requires an individual to deposit Rp 100 million and a business entity Rp 150 million.
Aside from offering high interest (adjusted to Bank Indonesia’s benchmark rate), Darmadi Sutanto, general manager of SCB’s Wealth Consumer Banking, said that this savings or check account provided comfort and facilities in transactions and had several other benefits. “We are highly optimistic that this product will enjoy an enthusiastic welcome from our clients because the premium market offers a good business opportunity,” he said, adding that up to late 2005 this exclusive product had attracted an estimated Rp 1 trillion.
Among foreign banks, Citibank may be considered the pioneer in priority banking schemes. With its head office located in the Golden Triangle, Citibank calls its premium service Citigold Wealth Management Banking. To be able to join this program, a customer must deposit at least Rp 500 million.
With an account of this size, a customer can enjoy special services — such as investment and financial management planning — and exclusive facilities at the Citigold Center, like safety boxes, special merchant discounts and invitations to attend exclusive events such as fashion shows, music concerts, seminars and so forth. In addition, with respect to more serious financial matters, a Citigold customer is served by a Citigold relations team, which is made up of a Citigold executive, an investment specialist and a foreign exchange specialist, and also is entitled to the support of global research and the knowledge of Citibank’s worldwide network.
Citigold Wealth Management Banking, which was launched in 2002 and has about 17,000 customers, is an extension of Citigold Priority Banking, a Citibank product introduced in 1980. While the Priority Banking program is focused more on exclusive services, the Wealth Management program is concentrated more on the management of a customer’s financial portfolio.
“It is no longer time for a bank to serve wealthy customers only with a sweet smile and a promise to understand their needs. Private banking was suitable about a decade ago. The service currently required is not product-centered, but rather customer-centered,” said Lanny Hendra, vice president of Segment Marketing of Citigold Wealth Management Banking.
Obviously, exclusive customers require exclusive services. A hypermarket concept could not be applied to these premium customers, they need tailor-made products like a boutique offers. Although there are several types of investment products, what matters most is how the services offered can help customers reach their financial goals. (Burhan Abe)
The Jakarta Post, April 25, 2006
