POSTOVA: ALL INFO ABOUT PRIVATE BANKING

In these times of finantial storm, it is crucial to make the right decision when choosing a bank. This gets more important if what we need is a foreign bank. Overall, three common scenarios justify opening an account abroad. The first question a company with branches in other countries, it is logical that the firm has accounts tied to their business. In this case, working with the banks in each locality is faster and more simple normal financial operations, such as charging for services or goods, payment of wages or deposit of checks, since it avoids the costs and the slowdown of a bank transfer. Another common scenario, and in the field of private customers, is when someone owns property in another country and works with banks in that state to address domestic issues such as payment of the community or the debiting of bills supplies. Perhaps less glamorous than the idea of investing outside of Spain as a matter of monetary or fiscal convenience, but it is certainly a much more frequent, and even necessary. In turn, with the emergence of new technologies and capital market liberalization, it is increasingly common for the small investor or saver particular recourse to foreign banks in search of profitable investments, or better terms for their savings, credit and mortgages.

Telephone and internet banking: Pros and Cons

The user can perform the same queries and telephone banking as safe as those made from the entity itself. The telephone banking is a system that allows the user to make inquiries and transactions via a telephone number that the entity makes available to those wishing to use this service. Thus, the physical presence of the customer in the branch is not necessary when checking the latest movements of the account, make transfers, pay bills or block for lost cards. These are just some of the operations, with the same security as those made in the institution itself, can be made without the need to move home or workplace. The banking services offered by phone are almost the same as those performed in the office, except, of course, for cash. Normally, the client can use either a landline or mobile for a call from Spain or from anywhere else in the world. Although some banks and savings banks have a limited schedule for operations-from 8:00 to 22:00 from Monday to Saturday-, others allow communication 24 hours a day throughout the year including holidays. This system also depends on the customer to choose when you call. Often, users have the option of using an auto-response system that interprets the words or customer information through the telephone keypad and prompts the data it needs to address the query or transaction, or speak to a telephone agent . In the latter case, the schedule is usually lower.

What customers need in banking

The first step to take advantage of this service, which is usually free, is to register. This requires that the client comes to your branch, it may pass through the phone or order online. In any case, the customer will receive a secret key, usually by hand or by mail. It is a personal access code has four digits, similar to that used for ATM transactions or turn mobile phones. With this key identifies the client when you can call and make inquiries about the status of their accounts. The telephone banking can be available to clients 24 hours a day. For safety and confidentiality, the user also receives a code card with which you can make their operations, something that can not be accessed only with the secret key. As explained from Bankinter, the code card contains letters and numbers, and each time the client wants to make a transaction in their accounts, for example a transfer, is asked one of the keys listed. It is the means used to confirm the orders, ie electronic signatures. This is a personal, non-transferable card that allows transactions in all accounts in which the user is the owner or authorized.

Each card contains a reference number that distinguishes it from all others because it brings a unique combination of coordinates and so the bank verifies that corresponds exclusively to a particular customer. As with credit cards, in case of theft or loss, the question has to contact to cancel phone service and the organization will provide a new one that will be received at the usual residence of the customer. Some bank cards coordinates replaced by other keys as a nickname or signature key for strengthening the security of operations. The key signature is issued automatically by a computer system, so that the attempt to access the key signing incorrect entry or block the operation to prevent any attempt to impersonate the user's personality.

Online bank: How it works

Once the client is in possession of the secret key and code card, you can use telephone banking service. This has to make a call to the number that the bank offers users access to this service. Some institutions use numbers with the cost of a local or provincial, and Caja Navarra. Other banks provide numbers 901-cost shared between the user and the receiver, or 902-where only the caller pays, with a higher price than the local call and less than the inter-. If it were a number with prefix 900, the call would be free, because the company providing the service bears the cost. Once the customer dials the phone number, the automatic response service channels the call. The user identifies with their personal password, and usually has the option of conducting the operation with the automatic response system or a telephone agent. The service automatically interprets the words and directions from the keyboard. It has the advantage of being quicker and be available in open later. You just type in your key operation that wants to do or say the word. For example, if the customer wants to check the balance of their accounts has 010 press or say "balance" if you want to know the movements of their accounts must type or say 020-movements. It also provides for the possibility of moving to an employee by dialing a code or saying "step by manager." The disadvantage of the typing system is that those who still have rotary phone can not use it, although they do have available the option to choose automatic or verbal attend them an agent.

Safety of new technology financial operations

The user can perform the same queries and telephone banking as safe as those made from the entity itself. What operations can be done. When the system has verified the customer's identity through their personal passwords, it can start operating typing codes or indicating what steps you want performed. The options are almost the same as those that can be done in the office. The service allows general queries such as schedules, location of offices, trading, although sometimes other entities have more specific services for these types of issues in which the caller can ask without identifying yourself. The client, without leaving home, you can also check the global position, the balance of their accounts, recent movements have been carried out or request extracts. In this way you will know if you have entered the salary or any amount due, if you have passed the bills paid or if you have money available for any type of transaction. You can also see the balance of the cards or the latest moves have been made with them. This option is useful when the client is not the only person using the card and want to have some control when you're interested in checking purchases or is suspected to be stolen. In the latter situation, like if there was a loss, the owner is able to immediately cancel the card to block the accounts and that no one can withdraw money or buy them.

Some institutions offer a higher return or smaller commissions to customers who use the phone Another option that provides telephone banking is to make transfers between accounts of the entity or transfers to other banks. Sometimes they charge a lower commission if these operations are done by phone if made in the branch. The telephone banking also offers the ability to receive stock information, see the General Index of the Stock Exchange, buying and selling securities, to know the balance and presentation of the personal portfolio and modify or cancel orders. It also allows, among other steps, check the status of investment funds, pension or deposits.

The advantages and disadvantages with traditiona banking

This system has, in short, characteristics that make it very attractive when performing operations. Its use is simple because the user simply follow the steps that the automated system is giving him and, in addition, most institutions are given the option to talk to a telephone operator at any time. The hours are much broader than in bank branches, which faciilta who work for their work, by the difficulty of leaving home or find one near you, find it more difficult to find a spare moment to perform efforts in traditional banking. Another advantage is that today almost all european citizens with at least one phone at your disposal, so that accessibility is broader than whether to use Internet banking. The ability to make calls from both a landline or from a mobile, either in Spain or abroad, provides great flexibility when controlling an account, cancel a card or make a transfer. This immediacy that provides telephone banking is one of the features by which users choose this system: allows any operation without leaving home at the time of day that is considered most appropriate without having to go to the office. Thus, the user saves time, money and delays.

Some institutions also offer more attractive terms to customers using the telephone as a means to access their accounts: higher profitability, smaller commissions for transfers, or deposits to a higher interest rate. On the down side, customers include the insecurity that causes them to make transactions via telephone, personal data or think you can replace his personality more easily. Although this is not the case and the control that the system undergoes the same, many people are still reluctant to use it for security reasons. Others think they will not know to use it and will be lost when dial numbers or choose the operation you want performed. We must also take into account the personal factor, which in traditional banking is very important. Many customers like to go through the branch, talk to the employee, often known for years and who is considered almost a friend, and be advised directly by him and that financial matters of trust and personal contact very important. Banking services through mobile phones are one step ahead of those offered by the telephone banking itself, as well as making available to the client the same operations that can be done by phone, incorporating more advanced entities other news. The last is to conduct negotiations through the video call with a 3G mobile phone. Customers using this service on your screen are a number of options as if it were an ATM. Pressing the keys on the phone, the user can perform the same operations as in online banking entity or traditional ATM except make money.

Other steps that can be done for several years via mobile are taking tickets for a show, recharge your phone, receive alerts to which you have subscribed before the client-entry of payroll, transfer agent, refunding of Finance , paying bills, or pay for purchases. It is also possible to make transactions via SMS, a system that allows check your balance, make transfers, money orders, recharge your mobile phone, checking the latest movements of the card or buy a product through a short message. The counterparty delivers a key customer that correspond to the operation to perform, such as "S" means "balance" or "T" card-check. The user has been discharged from the service sends the code via your mobile phone number of the entity, and it sends a short message informing you of the account balance on which the consultation has been, or the latest movements of the card.

Go to the private banking

The exclusive management of large estates involved the payment of a fee equivalent to 1% quarterly portfolio volume. The exclusive management of large estates, known as private banking, is a careful and personalized attention. Investment products (securities, funds, term deposits, accounts, etc..) Suit the financial needs, prosecutors and relatives of the client. But it is a free service. The institutions charge a commission which in most banks, is set at 1% per quarter the size of the portfolio. Offices that offer private banking services are distinguished from other branches of the same bank. Differentiation is sought for the customer instantly receives preferential attention, with maximum comfort in the investment business. The first characteristic, and recognized benefit is the personalized management. It offers its customers products that suit their preferences.

When a regular customer of a bank branch suddenly rises from asset level is derived, as a rule, specialists of their private banking financial institution. In this first contact, provides the basis for personalized treatment of the fortune of the user. The consultants investigated its special circumstances (family, professional and prosecutors), and discuss and consult their preferences and financial needs: immediate cash, have a monthly income of cadence, half-yearly or yearly, to know the level of risk you are willing to assumed to increase capital. With the responses, experts designed a number of proposals that diversify investment in various products. It offers a personalized management and distinguishes its customers with products that suit your preferences. From the outset, the client has available the phone number of your personal financial advisor, plus a quarterly or half yearly contact to assess the evolution of their investments. An added advantage of private banking is to maintain constant attention on the state of the investment, plus a comprehensive control of cash income to avoid unwanted loss or unexpected surprises.

Investments for private banking client requires a wealth of at least 300,000 euros. However, in theory, it meets upon request or sent by an office, regardless of the amount of your balance. Some people turn themselves in for advice. At other times, they are the professionals who seek to attract new investors and also may be that users are derived from network offices banking financial centers specializing in the management of large incomes. Each entity, depending on income level of customers, sets its own schedule, so can not describe a particular profile. Nor is comparable client a bank office in a rural area, with an Arab bank. Customers in these large banks invest generally in a basket of shares of companies and funds (more or less risky depending on the profile of the investor). In addition, they are given the opportunity to place their savings in the institution's own products, which are usually paid bank deposits: time deposits, subordinated to the bank, preferred shares or emissions.

EXAMPLE OFFERS FROM SOME BIG BANKS

* Santander Private Banking. It provides potential clients with a team of experts to manage your assets holistically. Structure their service offering in four columns that accommodate the particular needs of their customers, according to the level of risk they want to assume: advice of real estate investments and real estate, tax advice and structuring equity, investment banking financing and corporate restructuring, and banking services exclusive. After studying the financial needs of each particular transmission offered, among other possibilities, consumer credit, a loan with a pledge and its wide range of mortgages. They claim to have the leading insurer in the Spanish market, Santander Insurance, which sells through its 3,000 offices-Risk Life Insurance, Home Savings. Your offer is completed with a wide range of credit and debit cards with insurance related services, discounts and gifts, such as Santander Platinum or Gold Cards.
* Banco Popular. Its private banking based on criteria of "rigor, transparency and professionalism." Provides an accurate diagnosis, independent advice, the continual monitoring of investment and service and personalized communication.
* Caja Madrid. On behalf of this entity, Altae Private Bank offers quality products and services for high income and high net worth.
* La Caixa. Refers to his service as the "first author's private bank." It has a wide range of investment products (mutual funds, investment companies, managed portfolios), forecasting, structured and alternative. Propose mediation to invest in markets around the world and cover the financing needs of customers.
* BBVA Private Banking. The entity has joined Personal Banking (for customers with balances between € 300,000 and two million) and BBVA Wealth (for fortunes from two million) in BBVA Private Banking.

The advantages of private banking are many, but we can not ignore drawbacks, including the service charge. All large banks charge about 1% per quarter the size of the wallet. To some experts, the customer bears the risk of being victim of a possible advice by the bank concerned, which would base operations for their own benefit. This practice would find its justification in the return they get the banks, which earn more when moving the money you have available. When the characteristics of the products are equal, without prejudice to the client, the entity that hires the more favorable. The banking professionals say, however, set a series of criteria on personal and financial characteristics of each client, who offer different investment alternatives. Although in cases of equality of product characteristics, and without prejudice to the client, the entity may choose to support the recruitment of that is most beneficial. As managers who charge their own fees, the bank will ensure that its manager is selected, since this way increase the number of committees. In both cases, the customer would pay the same.

The general crisis of confidence towards the institutions also affects the big banks due to fraud such as pyramid scheme or the case of Lehman Madoff, in addition to financial market instability and chaos of real estate. A poll published by the investment bank Merrill Lynch and consultancy Capgemini shows that 46% of high net worth clients that bring together the world in 2008 lost confidence in their entity and their private consultants. According to a 2008 report by the consulting firm Accenture, only one third of the great EUROPEAN heritage works with specialized agencies. It can be inferred, therefore, that private banks in Spain now faces a large piece of land to conquer. In the last edition of the meeting "Private Banking", organized each year by IIR, which was held last June in Madrid, agreed to strengthen consumer confidence as the key to breaking the deadlock in the sector. In the event, announced that directors and managers of large fortunes are seeking new strategies to overcome the general distrust of the investor as well as mechanisms to achieve protect you from fraud.

PROS AND CONS OF PRIVATE BANKING

Advantage

* Management and exquisite custom.
* Offer products that meet specific needs and preferences of the investor.
* Customer support permanently.
* Attention constant on the evolution of the investment.

Disadvantages

* The customer must pay a fee for service.
* Risk of advice concerned the benefit of the entity.