In this interview, HNB’s Head of Private Banking, S. Nandakumar, elaborates on what differentiates the bank’s ‘Priority Circle’ from other high net-worth offerings, the process by which the bank arrived at its proposition and the potential for wealth management in the country.
Q: What differentiates HNB’s Priority Circle from the other high networth offerings available in the country at present?
A: At HNB we saw the high net-worth sector in the country as an area with significant potential for improvement of their suite of products and services.
We moved beyond the standard offerings like free access to airport lounges and similar facilities, to offer all that plus personalized advisory services, the likes of which have never before been experienced in this Country.
HNB’s Priority Circle adds tangible and significant value to customers – especially the availability and easy access to advisory services on a range of topics, over and above the usual privileges enjoyed by high net worth customers.
HNB has within our group the expertise on investment and wealth management products and services to insurance through HNB Assurance and Acuity Partners and we have developed a network of strategic partners for legal, travel, real estate and others, based on Client needs to offer seamless services in these areas.
Therefore Priority Circle facilitates access to Wealth and Legal Advisory, Insurance Services and even Travel Concierge services plus the comfort of using one of our ‘Priority Circle Centres’, located in select branches across the country.
Priority Circle clients will have access to Exclusive Meeting Rooms and Lounge Facilities at our Priority Circle Centres which can be used for key meetings, consultations or even to meet a business client - in a refined/luxurious environment.
Airport Lounge Facilities and other standard features of High Net Worth banking will all be bundled in our offerings.
We have expanded this pool of consultancies in key areas which has enabled HNB Priority Circle to serve as a ‘one-stop shop’ solution for our clients.
Furthermore a dedicated Relationship Manager will be assigned to each of our clients to look-after all their banking needs and to co-ordinate and assist the clients in building a portfolio aligned with their aspirations and goals.
There are a host of other benefits as well.
These include attractive interest rates on deposits and advances, reserved vehicle parking at Priority Circle Centres, a pre-approved ‘World MasterCard’ Credit Card, and free of charge Travel Cards as well as internet and mobile banking facilities, SMS alerts on credit and debit cards and Bank Account transactions, competitive rates on foreign currency issuance and a branded Priority Circle Cheque Book and Debit Card.
Q. Since you have Priority Circle Centres only at select branches how do you intend to serve Priority Circle customers when they choose to visit other branches ?
A. The benefits to which HNB Priority Circle members are entitled to extend beyond our Priority Circle Centres.
These customers get preferential services at all of our 250 HNB branches around the country and will be served by the Branch Manager of the Branch they choose to visit even if there is no Priority Circle centre in that location.
Q: HNB has placed significant emphasis on advisory services. Can you explain the rationale for this?
A: The proposition for Priority Circle was arrived at after in-depth research and analysis of a range of factors – we looked at customer insights and probed the requirements and expectations of the targeted customer segment.
It took us about 9 months to work on this and come up with what we believe is an unmatchable proposition!
This is an extremely busy customer segment and places convenience above everything else.
They are looking for much more than just banking transactions from their bank.
They look for a long term relationship and they expect their bank to understand their needs and aspirations.
Clients are increasingly on the lookout for investment options, insurance services, legal advice on various matters, business advice plus the fun things like travelling abroad – in keeping with their lifestyles needs.
The trust factor and our legacy also play a major part in their decision to bank with us.
So the natural step was to bring the solution to those under our roof.
We are confident that our personalized consultancy and advisory services, together with the bundle of other life style offerings and the standard of efficiency and service will be key differentiators in enhancing customer convenience and elevating it to a whole new level.
Q: What other Special benefits can Priority Circle Customers expect?
A: This is a segment that is looking for access to special events and privileges.
HNB being a Bank that emphasises and thrives on building relationships will be putting together a range of activities and events that complement the life style and interest of our customers.
These will range from outdoor adventures to experiences that money cannot always buy.
Q: What potential does HNB see in the High Net Worth segment in Sri Lanka?
A: The past few years have seen an increase in incomes in the country as well as the aspirations of the people.
We are witnessing the emergence of increasingly discerning customers who have lived or travelled abroad and hence have high expectations and who also face significant time constraints.
In this scenario Private Banking in general and Priority Circle in particular has significant growth potential.
As I previously mentioned, the offering with regard to personalized banking in the country had significant room for further improvement – which has been identified by HNB.
Reflecting our confidence on the growth potential of this segment, we have embarked on a very aggressive expansion and enhancement programme.
Q: How can one become a HNB Priority Circle Member?
A: To be eligible, customers must maintain deposits of Rs. 7.5 million in Rupees or Foreign Currency equivalent in a Savings Account or a Fixed Deposit.
A customer with a combined portfolio will also be eligible.
Q: Can a regular income earner become a Priority Circle member ?
A: Yes. If a customer who derives a monthly income of Rs.300,000 which is credited to an account with HNB, will also become eligible for this proposition.
About HNB
Hatton National Bank is a premier private sector commercial bank with one of the largest branch networks among private sector commercial banks, spread across the length and breadth of Sri Lanka and caters to all segments of the market through its diverse product and service offering.
The Bank is also involved in insurance and capital market operations in the Country through its Group companies.
As at end of 2015, the Group assets surpassed Rs 750Bn, while the Group recorded a post-tax profit of over Rs 11Bn for the year.
In 2012 HNB became the first Sri Lankan bank to obtain an international credit rating and was assigned a foreign currency issuer rating of B1 on par with the sovereign rating by Moody’s Investors Service, while it has a national long term rating of AA- (lka) by Fitch Ratings (Lanka) Ltd.
Photo Caption
1.) HNB’s Head of Private Banking, S. Nandakumar
2.) HNB PC lounge
3.) HNB Priority Circle lounge
