Battle of the banks over accounts worth several million euros

At least half a billion euros. That is how much the accounts are worth that the big banks are managing for their over 3,000 individual customers with at least 100,000 euros in cash each. Market estimates, however, point to one billion euros that have been left in the care of the banks by the richest clients. Despite substantial amounts of cash, these clients are generally conservative, preferring traditional placements such as bank deposits to instruments that expose their money to risks.

The first to tap into the market niche of private banking was ING Bank in 2001, which, before starting retail operations, rushed to attract the clients with lots of cash. Meanwhile, this segment has become a regular battlefield, with banks out to lure clients with tempting offers.

At present, the 600 clients of the Private & Personal Banking services put in the care of ING several hundred thousand euros to several tens of millions of euros to seek the best yields. If taking into account a minimum amount of 100,000 euros required for a client to be accepted in this category, the amount ING manages stands at least 60 million euros.

“Compared with the same time last year, the number of clients has gone up by over 10%, and the volume of assets managed by over 35%,” Sorana Tetik, the head of the Private & Personal Banking department of ING Bank Romania told ZIARUL FINANCIAR.

Even though it launched such services later, BCR boasts no less than 2,000 clients, yet the minimum threshold for such a client is 75,000 euros instead of the 100,000 euros required by ING and by most banks that provide luxury services. Even so, the total funds managed stand at 150 million euros, up over 50% on last year, according to the data provided by the bank.

Another major player on this segment is HVB Bank, whose Private Banking department manages about 100 million euros, almost 60% more than in the same time last year.

“We are managing portfolios that exceed 5 million euros in some cases,” says Monica Ionescu, head of HVB”s Private Banking division.

The highest amount Raiffeisen manages for a single client is in the range of tens of millions of euros, with ING having such clients, too.

“Over 25% of the balance of deposits attracted by Raiffeisen Bank from individuals are generated by the clients of the private banking department,” says Ioana Varga, head of Raiffeisen”s liabilities management department.

BRD-SocGen established a specialised department two years ago, but will not reveal any figures as it fears the competition. “We target niche clients, with an outstanding financial potential. The minimum amount to use the bank”s services is over 100,000 euros. Besides this, we also look at the clients” assets and at their growth potential,” stated Dana Baju, head of BRD Dorobanti group.

Bancpost is getting ready to enter this market niche in its turn. “We are now finalising recruitment of the experts we need. We will probably come up with a service offer by the end of the year, considering the vast experience of EFG Eurobank, our majority shareholder in this field,” stated Mihai Bogza, Bancpost chairman.