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Private Banking

Discussion in 'Property Finance' started by God_of_money, 21st Aug, 2016.

  1. God_of_money

    God_of_money Well-Known Member

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    Does anyone know the benefit of becoming a CBA private banking customer?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sounds good when you tell your mates
     
  3. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    It's a bit of **** - nothing that amazing.

    I've found that it generally gets people worse price discounting on their rates - I have a mate with several mil with them and is locked out from anything over a 1% discount. (he's on the level above the 150k income tier). I'm sure if he really wanted to push it further they've potentially budge, but I don't really see the value.
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker

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    1. Some private bankers have direct DUA (ability to sign off on loans) of up to $100,000 which can be quite handle for small business owners.
    2. Ability to give larger discounts than other channels (even other channels within the bank). They often to this when they sell you insurance and wealth products.
    3. In theory better service than other channels but this is really dependent on the individual you are dealing with
    4. Quicker turnaround times compared to dealing with other traditional channels within the bank such as branches.

    The biggest problem with private bankers is that their revenue is driven by wealth products so they will always try and flog these products whenever they can.
     
  5. Bondi

    Bondi Member

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    The biggest benefit is when you call, the person who answers knows you.
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sometimes
     
  7. God_of_money

    God_of_money Well-Known Member

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    Hi Terry

    The criteria is not that excessive (income > 400k pa and/or asset > 2 millions). Nothing to brag about with my colleagues.
     
  8. God_of_money

    God_of_money Well-Known Member

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    I was looking to have a greater discount >1.5% across my portfolio.. not sure through private channel will be able to give 1.6+%.
     
  9. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    My guess is that the private bankers get a bigger bonus if they put you on a higher interest rate (lower discount). Every client I have dealt with that had a private banker had discounts 0.3% lower than the standard discount offered by CBA's pricing tool.
     
  10. sanj

    sanj Well-Known Member

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    Although my immediate anf instinctive reaction to private clients being charged higher interest rates than most people off the street, i guess ultimately there has to be some recognition that an option with a lot more service built into it vs the usual ok heres your loan now go away and you wont hear from us as long as you pay your bills option.

    I use private for some things and for others i dont. If you go in with eyes wide open and recognise when/where it adds value and considet any pitential cost then it can be a great option for some.
     
    Colin Rice likes this.
  11. Brady

    Brady Well-Known Member

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    You're mistaking 'Premier Banking' & 'Private Banking'

    This is just a silly pointless comment.


    Private Banking isn't for everyone. It's more along the lines of below.

    It's not to go get the best rate, they aren't looking to attract that type of client/business.

    They're for the client who wants be able to be looked after from a service POV. They have access to a very broad range of products services.
    Idea being that you have at your call the one spot that you can go to for Resi Lending, Comm Lending, Margin Loan, Accountants, direct shares, packaged shares, FUM, IPOs, Fin Planners etc.

    Find it extremely funny that brokers here bang on so much that it's not about the rate, it's about the overall service.

    And when a bank does exactly that they jump on the other side of the fence.


    Speak with them, disucss what you want from them, see what they can offer you.
    If they meet your needs then proceed, they might tell you that they can't assist and walk away.

    It's a two way street, if it's not walk away.
     
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  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I have found some people like to run around saying things like "my private banker..." to impress their mates.

    It is just a form of marketing with little substance.
     
    Perthguy likes this.
  13. sanj

    sanj Well-Known Member

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    Ive had new bank accounts for a few new businesses opened, a good forex rate, usd sent before cutoff and a couple of other things organised on a friday with i believe 1 call in total and 1 email.

    For me i would have paid thousands for that service and been happy due to the opportunity but in this case didnt pay a thing.

    So yes you might pay more for certain thinga but you win on others. The above aervice level meant i could get it all done while still making 2 key meetings.
     
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  14. sanj

    sanj Well-Known Member

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    See below, if every retail client can organise that with 1 email or call and tje above, ina super short turnaround time and with 100% comfort of ot being done in time then i might concede the point of there being little substance.

    Ultimately i view it as part servixe and part future proofing/almost insurance like. I dont know when exactly i might really need to call on their services where theres no ither realistic option (time critical etc) but knowinf its there is a positive for me at least.
     
  15. sanj

    sanj Well-Known Member

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    Ultimately its not good value in some instances and great value in others but by nature it doesnt need to and isnt trying to be everything to everyone.

    I do agree with the sentiment that for many its a waste of time and more about a pointless brag that achieves nothing but i do disagree with the entire concept being considered pointless. This makes a big assumption of the bank actually executing though because if they dont then the services truly would be a waste of time and money
     
    Perthguy likes this.
  16. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    I just called it out because it appeared that @God_of_money was price sensitive.
     
  17. Marty McDonald

    Marty McDonald Mortgage broker

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    PB are good for some people but a bit wasted / unnecessary for most. I had a small business owner a year or so ago that I thought geez that PB is not giving you a good rate but then when I explored further it was very complex structure (too complex for my channel to be honest) and the security mix included 2 boarding houses. So while his rates were not that great he wouldn't have had it financed through normal channels at resi rates so it was actually a good deal for him although he didn't understand that...just looked at the rate hence his discussion with me!.

    I know of others who are high income earners but have fairly simple PAYG affairs who are PB'd. They are getting ripped off but they like the service and not having to deal with the usual call centre non sense etc. One example I was given by a mate was he was be able to call up and ask his banker to arrange for Fijian currency to be made available at the local branch front desk in less than 4 hours for him to pick up on the way to the airport. Silly really but some people don't want to deal with pleb land I guess. Probably got ripped on the exchange rate too.
     
  18. Brady

    Brady Well-Known Member

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    This was what I was referring to. Pointless comment that you don't have an idea of.

    @Marty McDonald exactly right, for most they're not the right fit. Often PB won't take you on as a client if you don't fit. Looking for the best rate around, not the right fit. Looking for complex structures across multiple investment classes then worthwhile or like you pointed out client who just want that hassle free service.

    I would suggest that a fair chunk of PC wouldn't suit PB. Most on here are very hands on, those that would fit the model have likely already done a lot of it themselves for years already. There would be a good amount that would still be suited. It's up to yourself to sit down and work out what you actually want/need.
     
  19. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    A well rounded (not fat) broker could provide that service direct and via referral, and they would answer their phone using your name :)
     
  20. sanj

    sanj Well-Known Member

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    No they could not. They could provide the arranging of loans yes but not the banking services and i speak as someone who almost always recommends the use of a broker vs going dirext to a bank
     
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