Hello, everyone.

Found out this discussion group by chance and thought I can contribute my views/ thoughts on Privilege/Priority Banking, and clear up any misconception.

I have been in the Retail Banking Industry for the past 8 years and had been an RM for the last few years in a foreign bank which shall remain nameless (hint: they have less than 10 branches at present nationwide) Am still in the industry thus far.

I'll check on this group regularly and strive to answer any queries you may have.

Cheers!

Welcome.
May be there are some your clients in this forum as well.

I guess one can easily guess out your bank also. Haha.

Cheers.

One thing I always wonder about is... why ? why priority banking ? If I had another 200K to spare, I'd get an apartment and rent it out.


This post has been edited by wodenus: Jun 13 2008, 08:40 PM

@wodenus,
Because some people use that $ to invest. It doesn't mean that priority banking customers have the RM200k in their FDs/Saving Accounts. It could be in the respective banks' Investment products.

Well, different individuals have different needs. True, some ppl have 200K-300K to spare. They probably invested in properties already and would just retain as cash and just leave the money there for some time (i.e. as emergency cash for personal or business). Or they might just wanna invest into some financial products other than FDs. It can be any reasons, actually. Since it can be considered a significant sum (in Malaysian standards), then might as well take advantage of what's being offered in the market.

In short, it depends on the individuals needs, preference and market/investment outlook.

@wodenus,
Also, the older folks would rather keep cash at hand than invest in some properties. Am sure ur folks would put the $ in the bank too, instead of buying a RM200k property.

Buying properties and rent it out doesn't mean will guarantee to get the net return higher than FD rate (after rental income - all the expenses). It still depended on property location and situation.
Also collecting rental from tenants sometimes is not as easy as taught.

We have enough property talk and calculation that shows not all properties will be generate te return rate higher than FD over the long run. So all depend on situation and property market and for those not willing the risk exposure, then FD still their choice.

Worst still if those property as seen by a lot of abandoned ready built shop lot is not having any demand, then basically, money down to drain every month for maintenance, quit rent etc.

So it depends on individual preference and risk they want to expose.

Also 200K is not a really big sum nowadays, can't even buy half portion of shop lot nor can buy a medium size/grade apartment.

Just my 2 cents.

This post has been edited by cherroy: Jun 14 2008, 10:59 AM

@cherroy,
It is true but the older folks [esp those in their 60s or 70s] would prefer something 'risk-less' or less risk hence would probably prefer to put the $ in the bank or in longer term investments; UT perhaps or these days, dual currency deposits, etc.

Personally I don't classify UT as low risk particularly equities fund on emerging market like China and Vietnam, which is the leading example, one can lose quite significant in UT.

Most China and Vietnam fund loss more than 25-30% over the year.

I fully understand UT or stock market *(buying UT is as same as buying stocks only will yield over the long term), one day it might recover the loss (not guaranteed though), but we don't know what is the time horizon. Typically example would be technology stock which has not recover half from its peak after 8 years plus or so. So buying at peak time for UT can be very risky.
Luckily we don't have technology fund at that time, because at that time Asian countries were only aftermath of financial crisis when tech bubble time, (also gov don't allow fund outflow or global fund to be set up at that time) so investment didn't have global fund or local technology fund either.

Mostly old folks are putting in FD in high portion, that's I had been observed over the time.

Besides, i have known few rich uncles n aunties who told me, after all the investments that they have done, the best returns they have is still fd tho some get lucky with shares and properties. Now i guess some r turned of by the FD rates.

Random Views and Statements:

1) Don't go into Vietnam funds now. The market there is getting hit very hard. Limited stock counters too. Not much case for diversification.

2) Most elderly folks put into FDs and non-revenue generating products. Only wants service but no revenue. (e.g. unit trust, bancassurance) - It's hard to service when it takes so much time - lotsa opportunity cost!

3) Got from a contact in citi that citigold charges rm240 per quarter if your average quarterly balance falls below minimum balance required (MBR). However, they can't debit from your account if you don't have a current/saving account! Ha... Instead they'll send you a letter asking you to pay - just ignore la

4) to the fellow who's desperate to open citigold a/c in sabah... well.. shop around first la... if you can, i would advise you to place your funds in a S'pore-based bank instead that will give you more product choices as compettion is much steeper! In m'sian, the banks only sell mainly run-of-the-mill products like unit trust, bancassurance and structured products.

5) got a mail earlier asking whether i know any RMs that screws around for a substantial sale. Sorry, can't help you guys as don't know anyone in my circle that does, or am aware of. I may be a private banker, that doesnt necessarily mean I take care of your privates too! haha....

6) Shop around and see what bank can give you the best balance of rates and services. Some banks are very stingy with rates (e.g. BLR is above others and FDs are consistently the lowest; will be the first to revise BLR upwards and the last to revise FD upwards if there are any adjustments) and dish out fees and charges like there's no tomorrow! Critical question you need to ask too - how many clients in their portfolio? Anything more than 200 is lot - not sure will help time to service you!


My 6 cents worth la....

@private banker,
Just wanted to check; know anyone with MBB? I apparently need a RM from MBB to give me an invitation if I want to hold an Amex Platinum Credit Card *sigh*

HAhaha sounds so like citi..

Let me check around - had a few ex-colleagues that was in MBB private banking. Not sure still there... Anyways, they might ask you to be a private banking customer before they extend the plat card to you. The plat card is just a hook, so take note. Will send contact to you directly if my ex colleagues still there.

Thought: Can't you just walked in and join MBB Private Banking and straight away request for Plat card? Anyways, knowing how the industry works, eventually I think the plat cards will be extended to all once the market starts becoming saturated. That's based on my experience!

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Added on June 19, 2008, 10:51 amYou said it, not me.... I admit nothing.



This post has been edited by private banker: Jun 19 2008, 10:51 AM

@private banker,
I apparently walked into a Maybankard Center not a Maybank Priorty Banking centre so she told me I had to go to the right branch office. I understand the hook; I guess I just wanted the Shangri-la benefits + the 2x reward points. I could settle for the Amex Gold Credit Card but what's the use when waiver can only be given if I had a Visa & MasterCard [I oredi haf 6 credit cards so I don't see a reason for needing a 7th, 8th or 9th] *grins*

RM100k is not a lot of $ to become a Private Banker with MBB, in my opinion. Except the benefits are probably not that great but parking is hell at most Maybank branches.

i see.... hmm...

checked with my ex-colleagues and no longer with MBB. Too bad...

Give it some time - think will be much easier to get card after market becomes saturated.

Btw, might need to pay annual fees too after 1st year - normally the card's annual fees by itself would cost over 2K! That was a few years ago when we analysed various plat card benefits.

Personally, i don't think the card is that big a deal la..

Do you mean AMEX Platinum Charge Card or AMEX Platinum Credit Card ? But since you said by invitation only, i guess you mean the AMEX Platinum Charge Card ? As AMEX Platinum Credit Card can easily be applied using your salary. The AMEX Platinum Charge Card annual fee is RM2000+ and cannot be waived.

@private banker,
Thanks for the information. I gave up and don't wish to bother about the MBB Amex CC oredi.

@MilesAndMore,
I guess people value things they can't get ! HAhahAHahHA.....

Trust me, plat cards are not a big deal - I see it so often it's become almost like....hmm... a regular credit card? Ha....

Sure there are always a lot of gimmicks to get you with promises of this and that, but at the end of it, it's just a card. You can easily use your existing cards for your purchases and spending. Just identify what you really want/need and take it from there - then you identify the card that will suit your needs. At this juncture, you can never go wrong with having a card that gives petrol rebates!

Anyways, that's just me stating the obvious and blabbering on..... Cheers!

@private banker,
You're most definitely right. I oredi hold 2 Platinum cards from 2 separate banks so I'm not v bothered about not getting this one.