Sheet 03 / Premier banking feeRHB Bank Malaysia
Experience
Premier banking fee
RoleProduct and programme roles, Group Retail Banking
BankRHB Bank Malaysia
RolloutAll 9 regions
Customer reviewAgreed with Group Compliance
01Results
- At cost1the fee was set at about the average monthly cost of serving one Premier customer
- Recoveredmost of the cost of serving customers below the Premier balance, through a new monthly fee income
- All 9 regionsrolled out nationwide, with a customer review process agreed with Group Compliance
02The situation
Premier banking comes with extra service, and that service costs the bank money. It is meant for customers who keep a minimum balance with the bank, but many Premier customers no longer did. The bank was carrying that cost.
03How we did it
- Worked out the cost to serveWe worked out the average monthly cost of serving one Premier customer, and set the fee at about that level.
- Won approval for a new feeA new fee needs Bank Negara Malaysia's approval, and getting it took real effort. We got it.
- Decided who paysWe screened out sensitive customers and worked through every combination of joint accounts, such as a secondary holder who keeps the balance when the primary holder does not.
- Rolled it outThe fee went live across all 9 regions.
04What I took from it
One of the highlights of my time in Premier banking. I learned a lot about the Premier segment along the way.
- 1The bank's own cost-to-serve analysis, used to set the fee.