Relationship banking


The banking industry is highly competitive. To retain and acquire new customers, {especially those that fall under the ‘High Net worth Individual’ (HNI) category} banks launch several innovative products. An increasing product portfolio is coupled with a high level of quality customer service. Assigning a Personal Relationship Manager (PRM) to an HNI customer is a part of this initiative.

Initially celebrities, high profile businessmen and wealthy professionals were favored with PRM. Now any individual who is categorized as a ‘HNI’ by his bank is assigned a PRM. However, the definition of an ‘HNI’ differs from bank to bank.

The aim of a PRM is to help the customer save time and effort that the customer otherwise would have spent in undertaking banking activities.

The various banking activities that can be undertaken through a PRM are:

Access to Regular updates:

Several banks offer various seminars and newsletters that aim to bring forth the correct investment techniques and products that an investor must opt for in order to create wealth. As the customer’s personal banker, PRM is well aware of his / her needs and can nominate any or all the services.

Borrow Funds:

If the customer wishes to opt for a loan from the bank, the PRM is there to help identify the correct loan structure that would be best suited to the customer’s requirements, keeping in mind his or her financial status and overall repayment capability.

Portfolio management service:

If the customer wishes to opt for the portfolio management service that is offered by the bank, PRM can be approached. The PRM will create a complete financial plan that will aim to meet the customer goals and will offer a customized investment solution. His role does not end here. He will regularly monitor your investment portfolio and intimate you if your portfolio needs to undergo a change.

Retirement Planning:

No customer is ‘too early’ to undertake retirement planning. PRM can help in this regards to plan for the customer’s retirement in a manner that will ensure that post-retirement years are truly your golden years.

Peripheral Services:

PRM can also undertake routine banking services (such as payment of bills, fund transfers, check and DD pick-up and delivery, etc.) for the customer thereby making routine banking activities as effortless and punctual as possible.

Cost of PRM:

Depending on the banking activity that the customer undertakes through PRM, a small fee may be charged. However, this fee is inconsequential in comparison to the benefits that the PRM brings to the customer.

Our comments:
PRM offers tailor made advice and services to suit a customer’s requirements. No two clients are the same for them. With their personal focus, one can be rest assured that the money is in safe hands. But at the end of the day one should also keep in mind that the PRM is working for the bank. Therefore there could be a tendency for him to promote and sell the bank’s products even though you might get a better deal on the same product from a competing bank.