HVB Bank Romania, part of one of the most powerful German banking groups, is tapping into the market niche of the so-called "private banking" services, by providing cash management solutions for wealthy individuals.
To support its new offer, the bank is preparing the entry of some investment funds of the group on the Romanian market, which should make it easier to invest the clients' money.
"We are working on bringing several investment vehicle options in form of funds here. We are expecting clearance from the National Securities Commission (CNVM) in this regard," Liliana Damianov, HVB's official in charge of HVB Romania's private banking department development told Ziarul Financiar.
She says the authorisation procedure will take some time, as CNVM has requested exact information about the investment markets of the respective funds.
Until the funds arrive in Romania, HVB offers its customers with an appetite for more sophisticated investments direct access to the products of the group's centre in Vienna, which provides countless options for markets and investment instruments. Damianov says HVB Romania gets discounts for its customers that conclude transactions in Vienna, even though small amounts are involved. January 1, 2003 came with the deregulation of the investments made by Romanian individuals abroad, yet NBR demands proof the money in question is actually used for investments, which means the local presence of some investment funds is bound to reduce red tape.
The minimal amount the bank requires if private banking services are to be provided is 100,000 euros. "A higher amount is easier to work with. This is a really painstaking work and the time is tight, so that you need to move as much money as possible in order to preserve quality," Liliana Damianov explained.
A requirement of the bank is that the assets considered should be liquid and flexible. "We are not talking consumption or spending money here, but the availabilities for savings," Damianov says.
HVB has been focusing on the existing client portfolio, using the new service offer as means to ensure customer loyalty or even regain some clients. The people in this customer segment are 50 to 60 years old on the average. Young heirs or entrepreneurs that have built a business after 1990 account for a small part of this segment.
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