NEW DELHI: Banks classify customers into different categories based on their income and assets with the bank. This helps th provide targeted services. Individuals with high net worth, or HNIs as they are generally known, are a key segment for banks.
Banks offer several premium services to customers deemed as HNIs. “These include personalised and customised banking services, special pricing on banking products, exclusive lifestyle privileges, customised investment solutions, and much more,” said Adhil Shetty, CEO, Bankbazaar.Com
According to Shetty, as there is no precise definition of how much net worth makes you eligible for this category, banks usually use their internal data for the purpose of classification. Most commonly, banks check for a minimum average monthly or quarterly balance in your account. Depending on this, the bank will determine your eligibility for one of the HNI tiers. The services offered vary depending on the tier you fall in.
With premium banking, all services become premium. Customers get higher withdrawal limits, bigger spending limits, faster service, lower charges, bigger loans, and more. For instance, the debit card associated with an HNI account may have a daily ATM withdrawal limit of Rs2 lakh and domestic shopping limit of ₹5lakh or more.
HNI customers may be eligible for premium credit cards that have high spending limits. They are entitled to priority services at the branch, and get preferential rates and discounts on charges on loans, forex, lockers, etc. “The mainstay of HNI banking is personalised services for all the banking, borrowing or investment needs of a customer via a personal banker who is accessible over the phone or on video chat,” said Shetty.
A wide range of services, maybe even the entire portfolio of services offered by the bank, could be conducted from home with help from a personal banker, with customers passing on instructions and getting doorstep delivery of services.
Shetty points out another important aspect of premium banking – wealth management and investment advisory for the HNI clients. These typically include dedicated and personalised portfolio management services spanning mutual funds as well as other alternative investment avenues tailor-made for the investor depending on their goals and risk appetite.
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