Tapping into rich clients through privilege cards<\/p>\n
Rudijanto, Contributor, Jakarta<\/p>\n
The continuous hunt for affluent clients has picked up among
\nbanks but, unlike the tapping of middle- and low-level clients,
\nbanks are not doing it with promises of spectacular rewards or
\nprizes such as luxury cars and a huge amount of cash but more
\nwith what these holders of premium cards actually desire.<\/p>\n
Though comprising less than 3 percent of total bank clients,
\npremium clients constitute major contributors to the total funds
\nabsorbed by the banks. No wonder that for these special clients
\nthe banks offer premium cards that promise a variety of benefits.<\/p>\n
Given special cards with specifically selected terms such as
\nPrimaGold, BII Platinum Access and BII Syariah Platinum Access,
\nAmex GoldCharge and Citibank Platinum, these clients have to open
\nan account of up to Rp 1 billion (about US$117,600) with the
\nrespective banks or have an annual income above a specified
\namount.<\/p>\n
Such amounts entitle them to become a member of an exclusive
\ngroup with other premium card holders. Banks usually consider
\nthese clients an affluent group that must be provided with
\nspecially formulated benefits or even tailor-made services.<\/p>\n
Each bank has its own formula to cater for the needs of these
\nhigh-end clients. They offer a variety of individual benefits
\nwith an emphasis on family, such as family-related, traveling and
\neducation, and wealth management programs.<\/p>\n
Bank Internasional Indonesia (BII) director of consumer
\nbanking Rudy N. Hamdani emphasizes that the benefits provided for
\nholders of BII Platinum Access and BII Syariah Platinum Access
\nare mainly focused on individuals and their families, such as
\nlife and education insurance.<\/p>\n
"To have these cards, clients should have a deposit of at
\nleast Rp 1 billion in our bank," Rudy said.<\/p>\n
But holders of these two prestigious cards can also take
\nadvantage of Platinum Access Centers. Among the services provided
\nin these centers are wealth-management services, including access
\nto various investment products.<\/p>\n
"We offer safer investment products such as mutual funds
\nbecause shares in the stock market always fluctuate. Our client
\ntrack record shows that they are more conservative types. That is
\nwhy we offer them safer investment products," Rudy added.<\/p>\n
Currently, BII has six Platinum Access Centers, of which three
\nare located in Jakarta, with the rest in Bandung, Surabaya and
\nMedan. Rudy expects each center to bring in 1,000 customers this
\nyear.<\/p>\n
While other banks consider a minimum deposit of up to Rp 1
\nbillion as a requirement, Citibank does not link the amount of
\nmoney deposited or the credit limit that the cardholder may have
\nin order to get the bank's Platinum Card.<\/p>\n
But Citibank emphasizes that the Platinum Card is positioned
\nas the most prestigious card in the world that also provides a
\nhigh credit limit. For this card, Citibank uses the "by
\ninvitation only" method on prospective customers.<\/p>\n
Citibank does not limit the benefits for Platinum cardholders
\nto only family and education but also offers unlimited and
\nexclusive services in a variety of areas such as shopping,
\nbusiness, vacation and travel with first-class carriers and
\naccommodation throughout the world.<\/p>\n
As a business and leisure companionship, Citibank Platinum
\nCard also provides emergency payment, legal and luggage
\nassistance, medical travel emergency services and many other
\npersonalized services.<\/p>\n
American Express (Amex) is also attracting more affluent
\nclients through its Gold Charge Card. The bank says that the Amex
\nGold Charge Card has been globally acknowledged as one of the
\nmost prestigious of its type.<\/p>\n
Among the benefits offered by the card are a special financial
\nfacility for those who travel frequently, in which overseas
\npurchases are charged in US dollars and purchases made in
\nIndonesia are charged in rupiah. This facility reduces currency
\nfluctuation risks.<\/p>\n
As with other banks, Bank Danamon has been quick to tap the
\nimmense potential of this upper segment. The bank studied and
\nevaluated its formula to grab more clients from this segment in
\nJune and July of last year. Early this year, Bank Danamon
\nlaunched its new concept to attract affluent clients through its
\nPrimaGold Card.<\/p>\n
"What differentiates us from other banks is that we focus on
\nindividuals but we can also solve their business-related
\nproblems," Carolina Dina R.S., executive vice president for
\ncustomer wealth management, said.<\/p>\n
Underlying this approach is the basic conviction that affluent
\nclients rarely have family concerns, since all their family-
\nrelated needs have already been taken care of. Carolina believes
\nthese affluent clients are more concerned with developing and
\nmanaging their wealth and businesses.<\/p>\n
While this approach is not that much different from the wealth
\nmanagement of other banks, she emphasizes that the difference is
\nin the fact that other banks usually separate wealth from
\nbusiness management.<\/p>\n
"What we offer to these clients is totally relationship-based.
\nOur motto is we take care of you and your business," said
\nCarolina.<\/p>\n
With such a concept, a client's need for credit is also taken
\ncare of without asking the client to go to a different service
\nsection of the bank. In other words, Bank Danamon offers its
\npremium clients a one-stop service.<\/p>\n
Like BII, Bank Danamon also offers various investment products
\nin its investment galleries, which are connected online with the
\nJakarta Stock Exchange. The bank provides a fund consultant to
\nguide PrimaGold cardholders in selling or buying stocks.<\/p>\n
Currently, Bank Danamon has 10 hubs that serve to attract
\nthese affluent clients. Each hub has 10 spokes. With all its hubs
\nand spokes, the bank is aiming to increase the number of its
\naffluent clients by 50 percent this year.<\/p>\n
Banks say that the ongoing campaigning and legislative
\nelections next month will have no significant impact on their
\nclients, although many people fear that these political events
\nmight incite political conflict and social unrest.<\/p>\n
"I don't see any impact from the election because I think
\naffluent people have decided to stay and expect a windfall from
\nwhatever is happening here. They lost so much opportunity during
\nthe last crisis when they took out their funds and the interest
\nrate sharply increased," Carolina said.<\/p>\n
BII's Rudy also expresses optimism on the prospect of grabbing
\nmore clients through BII Platinum Access and BII Syariah Platinum
\nAccess this year. Apart from targeting a significant increase in
\naffluent clients, he is also trying to maximize the funds of
\nexisting affluent clients.<\/p>\n
"As of now we have over 3,340 affluent clients with savings
\nand deposits amounting to about Rp 9 trillion. Their number is
\ncertainly smaller since they constitute only around 0.3 percent
\nof our total clients," Rudy added.<\/p>\n
Competition among banks will be tougher this year as more and
\nmore banks target affluent clients. Most of the banks use
\npersonal approaches to net this particular market.<\/p>\n
To intensify the contacts, Bank Danamon has trebled the number
\nof its Personalized Relationship Officers (PROs) compared with
\nlast year's total. All banks are also continuing to develop their
\nprograms, including offering tailor-made benefits.<\/p>\n
"But the most important thing is that we have to deliver what
\nwe have promised to them, and to continue with the development of
\ncommunity networking because a satisfied client will tell his or
\nher friends about the services provided by our bank," Carolina
\nsaid.<\/p>\n
The fight is tough, though, as banks seem to use literally any
\nmethod to attract existing affluent people, including those who
\nmay have become their competitors' clients.<\/p>\n
Just like the saying, "money has no nationality or knows no
\nboundary", the banks cannot expect loyalty from their affluent
\nclients. If they throw only peanuts, they should not be surprised
\nthat affluent clients will not emerge, but monkeys.<\/p>",
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