@Kforce wrote:
@Revelate wrote:
@Anonymous wrote:
@Anonymous wrote:
The claim that US Bank cares about relationships is likely true.
The claim that a crappy brokerage account and checking account with $200 in it somehow counts as a RELATIONSHIP to a bank with $495bn in assets is DUBIOUS at best.
For the point of view of increasing the chances of a card, possibly. But works fine for meeting the AR relationship test. My daughter opened a joint checking account with me with less than $200, ($117.28 to be precise!) and that was enough for her to get the AR one week later.
Yeah, relationships have to start somewhere and I think every major bank is somewhat following the same pattern I know Chase is: Chase wants to be your bank for life and evolve the relationship as your own requirements change, but even just starting with just a direct deposit is something, or in LTL's daughter's case, a handful of yuppie food stamps in a depository account.
Longer term sure more assets are needed, I am still just a number to Chase with CPC, my guess is somewhere around the Private Banker level (10mm in assets with Chase) that you start really mattering to big giant bank to Dogbert's point.
I suspect all the banks are still figuring it out but when it comes to the AR at least the requirements of a relationship are pretty slight.
Trying to get a discount on your mortgage, if USB even offers that, is likely going to take substantially more than that just sayin'
Only those with real money have a relationship, everyone else is fooling themselves.
Yes and no.
To your other point credit cards are a gateway product (drug) in the sense they are cheap to offer, highly profitable as a whole, and don't expose the bank to non-trivial losses.
Every bank wants the high net worth individuals sure, but I'm also pretty sure they have all figured out there is a ton of money to be made off the mass and emerging affluent classes too.
That extends even further, all the way down to college students though all the major lenders have flirted off and on with them, point is just like the stock market and putting all your cash in one equity, or at the craps table putting it all on red, you need to cast a wide net and when we are talking big banks that net is measured in millions or maybe even tens of millions of consumers.
Some percentage of those will use the bank as their primary FI.
Some percentage of those will use them for comparatively non-trivial products (investment, mortgage, auto I suppose etc). The banks are all improving their self-directed investment tools this is an example of their chasing that market.
And some number of those consumers will turn into high net worth individuals (or even very high net worth or more) but even a large number of mass affluent is also highly profitable and that's what Chase for example seems to be focused on in terms of recent products over the last few years.
That said, going from number to name is a much bigger thing: I get some minor discounts being CPC (like .25% or so and a $750 origination credit on a mortgage) but if I had more assets betcha those discounts get larger and origination fees totally waived. I suspect there may be lines at 1mm, possibly under active management, and of course there is the private bank one at 10mm.
I make a broad assumption that every other major bank has tiered relationships similar to Chase.
@coldfusion wrote:
@VPExecutive wrote:
If you don't live near a U.S Bank, you're paying ATM fees, fees for this, fees for that, and $4.95 per brokerage trade.
Not if they're managing at least $25K worth of your assets in deposits and/or as a Wealth Management client, by virtue of qualifying you for a no-fee Platinum checking account. Platinum account holders have a wide swath of fees either waived or rebated.
There is a caveat in that there are a few banking services they provide that do require an in-branch visit.
If anything, that shows where they start considering an account as a relationship. They're actively trying to make themselves more competitive to keep you there
