Wealth management is nothing but a banking customer segments that offer some extra benefits. Among them, access to exclusive airport lounges, golf specials, birthday gifts and more.
If traced further, true wealth management banking services consist of (minimum) 3 basics:
1. Rewards and Benefits
2. Product
3. Advisory
The presences of the three Basics are to respond to market demands and regulations.
The breakdown is as follows:
Basic 1: Rewards and Benefits
Within these Basics clients can be pampered with excellent service such as access to an exclusive lounge at the bank branch or at the airport, a variety of gifts or special deal relevant to the customer as a birthday gift, Eid hampers, vacation packages, medical check-up packages, access to lifestyle events, as well as educational events, discount golf and so on.
Not only that, preferential pricing became one of the benefits being offered.
It can be seen that most banks are racing to provide rewards and exciting benefits for the High Net Worth customers.
Basic 2: Product
In accordance with banking regulations, there are some non-traditional products that are only offered to High Net Worth clients. For example, structured products can only be offered to non-retail customers (i.e. customers with liquid assets of over USD 5 billion).
Other than that, the consumer banking division may also be a sales agent for the capital markets and insurance products such as mutual funds or banc assurance.
The key to success for implementing this Basic is none other technology to administer non-traditional products, the permission of the competent authority, as well as a trustworthy partner to become a provider of non-traditional products.
Basic 3: Advisory
In accordance with the regulations that non-traditional products can only be purchased by customers that have an appropriate risk profile, the approach to the sale of non-traditional products must be advisory.
Not only that, the bank must also have sales personnel who can understand the non-traditional products.
After these two met meaningful conversation (advisory) between the customer and the bank can take place, an agreement for a transaction can be achieved, and the bank will receive a fee.
It should also be noted that in addition to product knowledge some of these products also require special licenses such as licenses WAPERD (Sales Agent Mutual Funds) or permission of AAJI. The key to success for implementing this Basic is none other than HR.
When you finish reading this article, please read the following article Boosting Performance Wealth Management (Part II)
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