Local Banks Lower Barriers for PB Services
By Kim Jae-won
Staff Reporter
People in the middle income bracket are getting easier access to local banks' private banking services as banks have moved toward lowering the barriers for such premium services to attract more potentially-wealthy customers.
Seo In-seok, senior manager of Woori Bank's Yeouido branch, is trying to attract more VIP customers. The veteran banker, who is in charge of Royal Customers division, has sought to lure back customers who canceled their accounts in the wake of the global financial crisis.
``Many VIP customers canceled their fund accounts, which were hit hard by the stock market crash following the crisis. We want to get them back,'' Seo told The Korea Times, Monday.
``Especially, we focus on those who own about 100 million won, because they are sensitive to interest rates and can easily to switch to other banks.''
Kim Hyung-sang, deputy general manager of the business department of Kookimin Bank's Yeouido branch, agreed on the importance of the bracket.
``Customers who have 200 million won to 500 million won are the most sensitive to rates. They are the main target of business,'' Kim said.
Banks are lowering the barriers for their private banking services to grab such customers.
Shinhan Bank recently lowered its barrier to 100 million won from 200 million won. Korea Exchange Bank (KEB) is allowing households that own more than 100 million won to get the private banking service.
The representatives of the banks said that many of these VIPs are wives of high income professionals such as doctors and lawyers.
``High income professionals are very busy, so usually their wives are in charge of the money. They are the main VIP customers,'' Kim said.
However, VVIP (Very Very Important Person) customers, those who own more than one billion won, hardly change their main banks. They get special treatment including tax consultation services.
``VVIPs prefer stability to short-term profit. Also, they don't want to be exposed to others. That's why they do not change to other banks,'' the Kookimin Bank official said.
A 71-year-old Kookmin Bank VVIP, identified only as a Yeouido resident, said he has no reason to change his main bank.
``I have used this bank for 20 years. They are kind, and I am satisfied with the service. I cannot find any reason to move.''