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Understanding the Relationship Between Premium Banking Services and High Net Worth Individuals
Posted on Saturday, January 27th, 2024 | By IndusInd Bank
Indian banks perform two primary functions – receiving deposits and providing credit. Besides these, a bank typically issues drafts, transfers funds, offers foreign exchange services, and helps your funds grow, albeit at a low rate.
Anyone can avail of all these banking services by physically visiting their banking partner’s nearest branch or connecting with them online. But if you’re someone with a High Net Worth, you can get access to premium banking services, depending on your banking partner. But why do banks provide these services? Let’s take a look
Why do Banks Provide Premium Banking Services to High Net Worth Individuals?
High Net Worth Individuals (HNIs) earn a large amount of money and deposit most of it at a bank for safekeeping. Sometimes they also invest in shared equity, providing banks with an additional funding source.
Since banks want HNIs to deposit even more funds, they offer premium banking services to them. This includes banking privileges as well as additional perks.
What are these Premium Banking Services?
The premium banking services HNIs can avail of differs from bank to bank. That said, here is a list of premium services banks typically offer.
● Banking Privileges
As an HNI customer, one can avail of higher withdrawal limits, low charges, higher spending limits, quick service, lower charges, better offers, and more, thanks to premium banking.
They may also be eligible for premium credit cards with higher spending limits. The reason for these relaxed limits is simple. Banks trust that HNIs can pay off credit timely, given the funds they own. This gets HNIs better offers and better terms on banking products.
● Lifestyle Privileges
Many banks provide additional lifestyle privileges to HNIs. These may include access to airport lounges, premium bars and restaurants, discounts at spas, pharmacies, golf clubs and more.
● Wealth Management Services
Banks also provide wealth management services for HNIs. Through this service, the bank representatives understand the investment goals and the HNI’s tolerance for risk. Then, they help HNIs choose the right investment plan based on their risk appetite. Not just that. Post the investment, banks also keep the HNI investor informed about their progress. This way, wealth management services help HNI investors manage their investments end-to-end.
Over to You
The goal for the wealth management program is to make banking a convenient and enjoyable experience for the HNI customers by offering premium banking services.
Remember that different banks determine an individual with High Net Worth differently. So, your eligibility for premium banking services will vary depending on your banking partner.
If you’re an IndusInd Bank PIONEER client, you get access to personalized wealth management services at no extra cost. But if you aren’t one yet, you can apply online now! Visit our website to learn more.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
