Have you ever wondered if priority banking will bring you more benefits?
Before we delve into the advantages of priority banking, we will first discuss what it means and why banks offer such service.
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What is priority banking?
Priority banking, which is also called premier banking, refers to the services, advantages, and privileges that a bank offers to high-net-worth clients who can afford to deposit and transact sizable sums of money. In other words, you become a bank VIP member by using priority banking.
A minimum quantity of assets must be parked with the bank in order to be eligible for priority banking. These resources could be cash that has been deposited in savings or fixed deposit accounts, as well as securities like bonds, shares, unit trusts, exchange-traded funds, and real estate investment trusts.
The minimum standards are not often so high, as you will see in the following section.
If you have assets with a bank that total $100,000 – which many average Singaporeans do – you may be eligible to join their priority banking program.
However, it does not follow that you should or must qualify just because you are able to.
Instead of depositing all of your money in one bank simply to obtain priority banking status, it is preferable to shop around for the bank or banks that can offer you the best return on your savings or investments.
But why do banks even offer priority banking services?
The amount of cash on hand that a bank has to work with has a significant impact on how efficiently it can operate. Giving some customers preferential treatment encourages them to conduct more business with the bank thus increasing the bank’s revenue and allowing it to continue functioning and providing services to all of its customers.
The banking sector makes use of its financial expertise by providing guidance, minimizing paperwork, and generally holding the priority clients’ hands throughout their financial interactions with the bank.
A regular client, for instance, would consider a secure location like a fixed deposit to produce a consistent flow of interest revenue. On the other hand, the priority customer can be advised to choose financial instruments and other options that demand a greater investment and greater risk in exchange for better rewards.
The bank gains as well as the customer when they assist their most cash-rich clients in conducting business. Customers receive better service and better money management, which results in increased business for the bank. The situation is actually beneficial to both parties.
Pros of priority banking
You receive special treatment as a priority banking client, such as better rates, a personal relationship manager, and other benefits that will all combine to make you even wealthier.
Although benefits differ from bank to bank, you generally get to take advantage of the following:
• Priority queue: You can ignore those long lines and take the priority queue at bank branches or even show up at branches that cater to priority banking clients.
• A dedicated relationship manager: Quit listening to a recording that instructs you to push 1 for English while you are on hold. Your relationship manager will be at your disposal, helping you with your requests and guiding your asset investments.
• Superior interest rates: A lot of bank account interest rates tend to be quite pathetic. Worry not, yours should be a bit better.
• Better foreign exchange rates: Continue being a jet setter at more advantageous rates.
• Preferential loan packages: You are seen to be less of a danger because you are wealthy, so anticipate more alluring interest rates when you loan money.
• Fee waiver: Banks frequently offer cost waivers as an incentive for you to utilize them, such as for international ATM transactions.
• Other perks: The majority of banks with priority or premier banking facilities have specialized counters, lounges, and employees to cater to these privileged customers as soon as they enter the building. Along with these benefits, you can also get access to airport lounges, discounts on golf, and more.
How to be a priority banking client
Those perks might have sounded appealing to you and you want in, well typically, banks are the only ones that extend an invitation to a prospective priority banking customer. Even while it is always up to the bank’s choice, other priority customers occasionally have the ability to recommend another client.
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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
