Banks take services to top customers

Many financial institutions offer the same types of products, but what often distinguishes one from another is the level of customer service provided.

Great Southern is the latest area financial institution to launch a program specifically targeted at affluent clients. The now VIP program was introduced early this year.

To qualify for the VIP program, clients must have at least $250,000 in investable assets or $150,000 in net income.

"What makes VIP Banking program unique is the ability ... to bring all that Great Southern has to offer to the customer," said Heather Ramsey, director of VIP Banking.

"We make banking easier and more efficient by coming to them. We adhere to our client's schedule, not ours," she added.

VIP clients are entitled to a variety of services. The services are: no-fee interest checking; free checks, money orders, cashier's checks and traveler's checks; a free safe-deposit box; preferred rates on certificates of deposit and consumer loans; prime-rate home-equity loans; tailored mortgage loans with no processing fee; house calls and 24-hour service; and a single point of contact.

"It's something we've identified as an important part of serving a particular segment of customers, and it's something that we've had in the works for quite some time," Ramsey said.

Great Southern is in the process of identifying current customers who will be transferred into (the) program, she said. VIP Banking is staffed by Ramsey and one assistant.

The program is being introduced to targeted customers through direct mail marketing, Ramsey said.

Jim Johnson, managing director for the US Bank Private Client Group, said US Bank introduced a similar service, called Private Banking, to the Springfield area market in 1998.

US Bank private bankers take a proactive management approach to their clients' needs, Johnson said.

"We look at providing integrated financial solutions for affluent clients," he said.

US Bank Private Client Group defines "affluent customers" as those who have adjusted gross incomes of $150,000 or $500,000 of investable assets, or they are in a professional practice such as a physician, lawyer or CPA.

As the bank develops new products, the private banker approaches clients and suggests which products can best serve their individual financial situations, Johnson said. Private bankers meet with their clients on a quarterly basis to review their accounts, he added.

"It's a very proactive, client-centered approach, which is different from the typical retail side of a bank," Johnson said.

Clients with certain investment or trust accounts with US Bank are granted a private select capital line, he added.

"For instance, if they have a $500,000 investment account with us, they would automatically have a $250,000 line of credit," Johnson said.

Having that automatic line of credit means the client does not have to go through a long loan application process, Johnson said, because the private banker will take care of that for him.

"It makes it a very easy process for them," he said.

Steve Gassel, managing director of private banking for US Bank Private Client Group, said private bank customers are relationship-driven customers and each relationship will determine how they market to that client. He said representatives ask clients in the opening stages how they want to be approached (e-mail, phone, lunch), how often and where they'd like to meet, such as the client's office or at the bank.

"The expectations on service are extremely high," Gassel said.

Robin Robeson, senior vice president and market executive for The Commerce Trust Company, said the company introduced Private Banking 10 years ago. At that time, the focus was on physicians and other high-income professionals in the medical industry, she said. The service has evolved over the years and now focuses on professionals and executives in other fields as well, she said.

Robeson said the program is not just product driven.

A personal relationship manager, or private banker, facilitates all of the clients needs, she said.

That means the client may not even have to go to the bank; private bankers will go to them, Robeson said.

Each client is assigned a private banker who will travel to his or her home or office as needed to conduct business.

"I believe that if we were not able to provide that very high level of service, we probably would not have those clients," Robeson said.

"The relationship manager is a real resource for that client, and basically they are looking for ways to either help the client make money or save money. It's a very customized program."

Three people work in Commerce's Private Banking program, she said.

About 75 percent of Private Banking referrals are derived from existing clients, Robeson said.

In addition to word of mouth referrals, she said area physician recruiters and a select group of real estate professionals refer clients to the program.

"The bottom line is that we want to be the financial institution of choice for these high net-worth individuals. What we try to focus on is providing a very high level of service," she said.