Banking Industry Extends Personalized Service to More Clients

By Daniel Dunaief Bloomberg News | THE JOURNAL RECORD, November 18, 1997 | Go to article overview

Banking Industry Extends Personalized Service to More Clients


Daniel Dunaief Bloomberg News, THE JOURNAL RECORD


MINNEAPOLIS -- John Hagen is well-to-do, but he never thought of himself as rich. So when the telecommunications executive returned home from having heart surgery last March, he was surprised to receive visits from a Norwest private banker to help with his financial affairs.

"I've been working and dealing with banks for 40 years, and I've never had any service that approached this," he said.

While Hagen, 61, may not be as wealthy as your typical professional ball player, he is well off enough to qualify for special attention from Norwest and a growing list of U.S. banks. That's because banks are now extending to a wider group of customers the kind of personalized service that in the past was reserved only for their wealthiest clients. To qualify for private banking at Norwest, for example, clients need only have $1 million in assets to invest, loans of at least $250,000, or trade an average of $500,000 in securities a year. "The banking industry is really changing its focus," said Lucy Stoffels, whose title is affluent marketing manager for private client services at Minneapolis-based Norwest. "Banks have the credit and deposit business, and are looking to the future." Her department, created in April, provides investment management to its Minnesota customers. Banks have historically provided customized services to the wealthiest 5 percent of their customers, but are expanding that to the top 20 percent, said Fred Cummings, a bank analyst at McDonald & Co. Investments in Cleveland. BankAmerica, the third-largest U.S. bank, recently created a group called "financial relationship management" to direct special services to customers with balances of at least $75,000. The bank hired about 400 officers, and transferred another 1,000 executives into a division that provides estate planning, insurance, and deposit products -- a range of offerings and personal attention that's unavailable to traditional retail customers. "For a client preparing to retire, the bank would historically want to make sure they had a checking account with the right direct deposit and maybe a safety deposit box," said Kim Burdick, who heads BankAmerica's relationship management in Southern California. "Now, we take a much more complete look in terms of expanding the services into long-term disability insurance and investments." Analysts say banks are starting these programs to fend off competition for their well-heeled clients. "The traditional high-net-worth marketplace is at risk" as discount brokerages and mutual fund companies pursue those clients, said Kurt Reisenberg, a consultant at VIP Forum, a division of the Washington-based Advisory Board, an industry research and consulting concern. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Banking Industry Extends Personalized Service to More Clients
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.