Priority clients: Small but lucrative market

Ari Darmawan, Contributor, Jakarta

Priority customers are not huge in number, but due to their enormous amounts of funds and transactions they are undoubtedly regarded as "fat" accounts, and therefore categorized as clients who deserve priority banking services.

Two state banks, Bank Mandiri and BNI, for example, provide such customers with exclusive service packages called Mandiri Prioritas and BNI Prima, respectively. Bank Mandiri refers to these clients as "prominent persons", while BNI's term is "special persons". Obviously, they deserve these names as they let the banks manage funds for them amounting to billions or even trillions of rupiah. Normally, to be classified as one of these special individuals, the amount deposited in the bank must be at least Rp 300 million.

A number of private domestic banks and major foreign banks also provide similar services. Bank Niaga has Niaga Private Banking, while Hongkong Shanghai Banking Corporation (HSBC) features HSBC Premier. Some local banks provide similar services for their major customers, but due to their own internal reasons prefer to maintain a low profile for these services and do not give them any grand names.

Bank NISP, for example, provides priority services to certain customers based on the quality of their relationship.

"A huge amount of funds is not a prerequisite. We tend to look at our relationship with the customer, for example how long he or she has been our client, rather than the amount of money entrusted with us. So our classification of priority customers is more flexible. We always strive to provide such customers with something extra, something more satisfying, even including a special interest rate," said Pramukti Surjaudaja, president and CEO of Bank NISP.

The bank has not created a special service package for its "special" customers, because since its establishment its target market has never been major corporations or "top" individuals.

"The majority of our customers belong to the middle class ... this has been from the start of our business. This particular segment, though rarely comprising multibillionaires, is very resilient and each of them is entirely focused on his or her business," Pramukti said.

Just like the name priority banking, banks specializing in this segment provide a wide range of prioritized services for their special customers, including personalized staff, special luxury office, consultation on investment and financial matters and, of course, the entire range of products and services available to all customers, only with more ease and convenience.

Bank Mandiri operates its Mandiri Prioritas service in most of the country's major cities, such as Jakarta, Medan, Palembang, Bandung, Semarang, Surabaya, etc. The bank's specially trained and highly professional staff -- called Personal Bankers -- are available round the clock to attend to a customer's needs, be it administrative, financial or consultative, plus the execution of investments.

Naturally, these Personal Bankers are equipped with a vast knowledge of current financial and business trends, which enables them to provide a customer with solutions and investments with the highest probability of profit. Plus, they serve customers with sincere enthusiasm and friendliness. They attend to even the smallest requests from customers, though, of course, in today's high-tech era their telephone and computer will suffice.

Bank Mandiri's priority customers are also allowed to transfer amounts higher than those permitted for ordinary customers, up to Rp 50 million per day, and they can use the bank's safe deposit boxes for free. Another acknowledgement is the Bank Mandiri Prioritas Card, which, of course, gives customers privilege services at all of the bank's branches, the use of Executive Lounges at certain airports, discounts at various star-rated hotels and exclusive restaurants, and special invitations to exhibitions, shows, entertainments, seminars and so forth.

Last year, for instance, Bank Mandiri Prioritas offered privileged customers a special tour -- Art & Shopping Tour -- to the city of Yogyakarta and its surrounding areas. The tour included, among other things, special discounts at the Bhumiprama Gallery, the Ardiyanto Batik Gallery and the Ullen Sentanu Batik Museum, which has a collection of the entire range of royal dresses of the Yogyakarta Palace from past to present.

The customers on the tour also were taken to the Yogyakarta Palace and were personally received by the Sultan's wife, Gusti Kanjeng Ratu Hemas. Next, they were taken on a scenic tour of Tembi village on horse-pulled carts, where they enjoyed the fantastic view of traditional houses and local scenery. The guide was none other than the famous movie star Rima Melati. Consistent with the theme of the tour, the lunch for these special customers was held at the Losari Coffee Plantation, well known for its beautiful panorama and cool weather.

"This was part of our program to retain clients and to maintain their loyalty," said Kostaman Thoyib, manager of Bank Mandiri Prioritas. Other specially packaged programs to pamper these special clients are golf tournaments, fashion shows, seminars and exhibitions. During a recent exhibition of Arie Smith's paintings, for example, these special customers were given a special price -- half the market price -- for a book containing the collection of Arie Smith's paintings.

Similarly, Bank Niaga Private Banking also offers its priority customers various special programs, including every available convenience in the management of their funds and worldwide access. The bank's staff for this exclusive service are called Customer Relationship Managers and they make sure that customers really get all the highly professional services plus the "perks", just like the bank's motto: "At Bank Niaga Private Banking You Get Your Own Personal Financial Manager."

Meanwhile, HSBC's priority banking service -- HSBC Premier -- assures its privileged customers of truly worldwide service and international access. As a major global and long-established bank, HSBC's Relationship Managers provide their customers with the bank's entire range of products and services, including consultation and the execution of investments.

HSBC Premier customers can carry out any kind of banking transaction 24 hours a day, seven days a week through the bank's Personal Phonebanking from anywhere in the world. They are also automatically protected from bounced checks. Cash withdrawals at all HSBC Automated Teller Machines (ATM) are free of charge, and special discounts are also available at certain world-class boutiques.

Apparently, these types of customers, with their huge amounts of deposits and subsequent transactions make a tremendous contribution to these banks' profits.

Bank Mandiri has some six million customers comprising corporate and individual clients. With roughly half a percent of these customers with at least Rp 500 million each -- amounting to Rp 15 trillion -- they form a lucrative market segment.