In many service-based industries, it’s common for companies to identify their most valuable customers and retain their loyalty by offering privileges and perks to them.
Similarly, once your bank account balance hits a certain threshold, you become eligible to your bank’s private banking services. Being a private banking client comes with benefits such as access to personalised service, wealth management solutions, preferential rates for loans and perks that are only available to a few.
What Is Private Banking?
Private banking is a range of financial services and products that are offered to high-net-worth individuals. For reference, you can generally qualify for private banking with most Malaysian banks once you hit the RM3 million mark.
You might have noticed that banks have a line of products or services termed as priority banking, premium banking or privilege banking. These services are available to affluent customers who deposit a certain savings amount or investments with the bank and they’re regarded as VIP customers of the bank. As VIP customers, they are privy to benefits like wealth management solutions, special rates for loans and an assigned relationship manager to assist them.
Although priority banking and private banking are similar in some ways, private banking is generally a tier above priority banking with a higher entry requirement.
Private banking is typically by invitation only and is open to Malaysian citizens, permanent residents and foreigners with valid work permits.
How Do You Qualify As A Private Banking Customer
The requirements to be a private banking client differ from bank to bank. You generally need to meet a minimum asset under management (AUM) to access private banking services.
This differs from the entry requirement for priority banking, which has a lower threshold. For example, you need to have over RM3 million in investible assets generally to be a private banking client.
The following are the minimum AUM required to access private banking services with some banks in Malaysia. Most of the banks listed below require you to have an AUM of at least RM3 million.
Maybank has the highest entry requirement at around RM4.3 million. Meanwhile, CIMB allows members of its Preferred Banking platform to upgrade to Private Banking if they have an AUM of RM1 million and a savings account balance of RM500,000.
Notably, Maybank is also the only bank that denominates the entry requirement amount in USD.
| Bank | Minimum Entry Requirement |
| Maybank Private Wealth | US$1 million (RM4.3 million) |
| UOB Private Bank | > RM3 million |
| Hong Leong Private Banking | RM3 million |
| Standard Chartered Priority Private | RM3 million |
| OCBC Premier Private | RM3 million |
| AmBank Priority Private | RM2 million |
| CIMB Private Banking | RM1 million & savings account balance of RM500,000 |
Your private bank membership may be reviewed so you should try to maintain your private bank eligibility by keeping the minimum AUM account balance.
What Do You Get As A Private Banking Client?
After accumulating a sizeable wealth, you will have to consider many things such as maximising your wealth with efficient tax planning strategies, preserving and distributing your wealth to future generations.
As a private banking client, your bank will assign you a private banker to help identify your needs and provide suitable solutions including tax advisory, estate planning, portfolio management and financing solutions.
These solutions are not limited to your personal banking needs but also extends to your business requirements as well.
For example, CIMB Private Banking provides clients with corporate finance advisory for mergers and acquisitions, flexibility to access financing in local or foreign currencies and funds to acquire properties locally and abroad in Australia and London.
Read Also: 10 Richest Billionaires In Malaysia And The Businesses Behind Their Wealth
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