Pre­mium-Qual­ity Ser­vice for VIP Cus­tomers

Pre­mium-qual­ity bank­ing ser­vices are get­ting more and more popular in Be­larus

Economy of Belarus - - CONTENTS -

Pre­mium-qual­ity bank­ing ser­vices are get­ting more and more popular in Be­larus

They say si­lence is the sound of money talk­ing. Money also likes com­fort and cus­tom-tai­lored ser­vice. Pri­vate bank­ing that emerged in West­ern Europe about three cen­turies ago as a way to pro­vide ser­vices to high­pro­file clients con­firms the state­ment. Later on pre­mium-qual­ity bank­ing was made avail­able in the for­mer USSR. This kind of ser­vices emerged in Be­larus af­ter Rus­sia and Ukraine. It is typ­i­cal that the banks par­tially or wholly owned by for­eign fi­nan­cial bod­ies with a record of ser­vic­ing wealthy clients were the first to ex­plore the new branch of the bank­ing busi­ness. Ex­perts say that VIP bank­ing in Be­larus is in its nascent phase but al­ready en­joys solid de­mand. The num­ber of clients in­ter­ested in luxury ser­vices rises steadily.

Priv­i­leged Sta­tus

The banks that have de­cided to pro­mote pre­mium-qual­ity bank­ing as an in­de­pen­dent ser­vice call their un­der­tak­ings dif­fer­ently: pri­vate bank­ing, pre­mium bank­ing, VIP bank­ing. The thing is that there is still no com­mon term for VIP ser­vices and the strat­egy to han­dle the priv­i­leged sec­tor in Be­larus yet. How­ever, the core of this busi­ness is al­ways the same: banks pro­vide clients with ex­clu­sive fi­nan­cial and non-fi­nan­cial cus­tom-tai­lored ser­vices with a cer­tain de­gree of com­fort.

Some banks tar­get well-to-do com­pa­nies while oth­ers tend to care for wealthy in­di­vid­u­als. By the way, there are quite many wealthy Be­laru­sians. Ac­cord­ing to the World Ul­tra Wealth Re­port 20122013 com­piled by the in­ter­na­tional con­sult­ing com­pany Wealth-X, there were 115 peo­ple in Be­larus, whose in­di­vid­ual wealth was es­ti­mated at many mil­lions of U.S. dol­lars, with their com­bined wealth as high as $13 bil­lion. The re­port ranked Be­larus 27th among 45 Euro­pean coun­tries. The top coun­tries were Ger­many, the UK, and Switzer­land. Priv­i­leged sta­tus can also be granted to for­eign cit­i­zens, who have a busi­ness or other in­ter­ests in Be­larus.

Cer­tainly, ev­ery banker dreams of hav­ing a VIP client with mil­lions to his or her name. But in re­al­ity ac­cess to Be­laru­sian pre­mium bank­ing is much more af­ford­able.

For in­stance, ini­tially Al­faBank’s A-Club – the di­vi­sion that caters to VIP clients – in­cluded clients with at least $100,000 in their ac­count. At present one needs at least $100,000 in their de­posit or $50,000 in their cur­rent ac­count to be able to join the club. If the client has less than that, the A-Club membership will cost Br2 mil­lion on a monthly ba­sis. Alfa-Bank’s A-Club in­cludes both cor­po­ra­tions and in­di­vid­u­als.

Bank BelVEB is ready to give VIP membership to an in­di­vid­ual, pro­vided the av­er­age daily bal­ance in the last 12 months has been the equiv­a­lent of at least $50,000 or at least $100,000 at the be­gin­ning of the day. As an­other way the VIP sta­tus can be granted to a nat­u­ral per­son with a pos­i­tive credit his­tory as part of a credit agree­ment worth the equiv­a­lent of at least $100,000.

“Priv­i­leged sta­tus can also be granted if the bank caters to the em­ployer of the in­di­vid­ual as part of a salary pack­age while the av­er­age monthly salary trans­ferred to the in­di­vid­ual’s ac­count in the bank in the last three months was the equiv­a­lent of at least $3,000,” said Niko­lai Sha­randin, Deputy Direc­tor of the Re­tail Ser­vices Depart­ment of Bank BelVEB.

It is pos­si­ble to en­joy Raif­feisen’s Pre­mium Bank­ing ser­vices in Pri­or­bank if the client sat­is­fies at least one of the two re­quire­ments. The av­er­age monthly sum trans­ferred reg­u­larly to cur­rent ac­counts, in­clud­ing cur­rent ac­counts that come with a bankcard, has to be the equiv­a­lent of at least 1,000 in the last six months. Al­ter­na­tively, the av­er­age daily bal­ance on the cur­rent ac­counts and de­posit ac­counts has to be the equiv­a­lent of at least 30,000 in the last six months.

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