Would you find this Chase branch practice offensive?

[AllSeasons]

But people have been telling you, it’s not wealth segregation. You’re letting your own biases color your perception.

I disagree. I don’t usually trust Wikipedia, but FWIW, this is how they define wealth management:

Wealth management as an investment-advisory discipline incorporates financial planning, investment portfolio management and a number of aggregated financial services. High-net-worth individuals (HNWIs), small-business owners and families who desire the assistance of a credentialed financial advisory specialist call upon wealth managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management.

To me, that’s pretty clear. Plus I went to business school, so I have an inkling or two about this kind of stuff.

 

[Mrs_Sally]

I disagree. I don’t usually trust Wikipedia, but FWIW, this is how they define wealth management:

To me, that’s pretty clear. Plus I went to business school, so I have an inkling or two about this kind of stuff.

And what about the families and small business owners also listed in that definition? Is the door for them too or not?

 

[AllSeasons]

And what about the families and small business owners also listed in that definition? Is the door for them too or not?

Yes, the definition does include families and small business owners. But just think about it. It’s called wealth management for a reason. The families and small business owners would need to have wealth that’s in need of managing. And really, if you have so much money that requires the service of a bank to help you manage it, you are certainly not poor. When you’re talking about wealth management, you’re talking about millions, not thousands.

 

[jmcrae]

Yes, the definition does include families and small business owners. But just think about it. It’s called wealth management for a reason. The families and small business owners would need to have wealth that’s in need of managing. And really, if you have so much money that requires the service of a bank to help you manage it, you are certainly not poor. When you’re talking about wealth management, you’re talking about millions, not thousands.

I’m not rich, but I go for a meeting in the “wealth management” area of the bank twice a year to - um - manage my poverty.

They have good advice for poor people, too, and provide services to help people get out of debt, and borrow money at more reasonable interest levels, etc. You don’t need a million dollars to make use of their services - if you have an extra five bucks a month, they probably have a product for you.

 

[AllSeasons]

I’m not rich, but I go for a meeting in the “wealth management” area of the bank twice a year to - um - manage my poverty.

They have good advice for poor people, too, and provide services to help people get out of debt, and borrow money at more reasonable interest levels, etc. You don’t need a million dollars to make use of their services - if you have an extra five bucks a month, they probably have a product for you.

Good for you! Obviously, there’s nothing to prevent someone from making use of the wealth management services, regardless of the amount of money that’s in need of managing. That said, it’s how the bank has chosen to segment their customer base. It’s the way they have set up their services to cater to different segments within their customer base. Their employees in wealth management would have a different set of skills than those in consumer banking. Those in wealth management are probably better educated, better trained, and better paid. So in order for them to achieve the expected return on investment, they’d need to have customers who are, well, wealthy, to make it worth their while. If you went in for wealth management services, then that presents an opportunity cost to them, meaning that in providing you services, they’re missing out on the opportunity (time and resources) to provide services to a higher net worth individual, who could be a lot more profitable to them.

And really, you can’t use anecdotal evidence to conclusively prove anything, because it’s too small of a sample size, and it could very well be an outlier.

 

[jmcrae]

Good for you! Obviously, there’s nothing to prevent someone from making use of the wealth management services, regardless of the amount of money that’s in need of managing. That said, it’s how the bank has chosen to segment their customer base. It’s the way they have set up their services to cater to different segments within their customer base. Their employees in wealth management would have a different set of skills than those in consumer banking. Those in wealth management are probably better educated, better trained, and better paid. So in order for them to achieve the expected return on investment, they’d need to have customers who are, well, wealthy, to make it worth their while. If you went in for wealth management services, then that presents an opportunity cost to them, meaning that in providing you services, they’re missing out on the opportunity (time and resources) to provide services to a higher net worth individual, who could be a lot more profitable to them.

And really, you can’t use anecdotal evidence to conclusively prove anything, because it’s too small of a sample size, and it could very well be an outlier.

Right - I’m just making sure that people realize they don’t have to conform to the stereotypes that are out there. If you’re broke or practically broke, it doesn’t mean that you have to stay that way, and let’s face it, bankers are experts on money - if you want to figure out how to manage your money and break out of the cycle of poverty, get a meeting with your banker. It won’t cost you anything, and what it costs him is his problem.

 

[WingsOfEagles]

Good for you! Obviously, there’s nothing to prevent someone from making use of the wealth management services, regardless of the amount of money that’s in need of managing. That said, it’s how the bank has chosen to segment their customer base. It’s the way they have set up their services to cater to different segments within their customer base. Their employees in wealth management would have a different set of skills than those in consumer banking. Those in wealth management are probably better educated, better trained, and better paid. So in order for them to achieve the expected return on investment, they’d need to have customers who are, well, wealthy, to make it worth their while. If you went in for wealth management services, then that presents an opportunity cost to them, meaning that in providing you services, they’re missing out on the opportunity (time and resources) to provide services to a higher net worth individual, who could be a lot more profitable to them.

And really, you can’t use anecdotal evidence to conclusively prove anything, because it’s too small of a sample size, and it could very well be an outlier.

Providing a Wealth Management door saves a lot of time, especially in a larger bank. I know when I’ve been in a smaller bank, you end up waiting in the same line as people making basic deposits and withdrawals, only to then be redirected to one of the office areas. By having a separate area to begin with, it keeps the lines more manageable.

 

[1ke]

So what i have been able to gather is that there is no door marked “high net worth” and “regular people” but rather a door marked “wealth management” that leads to a separate set of offices from the regular bank lobby.

So it sounds like you have decided it is offensive and that it is only for “rich” people. I hope you are open to other’s (name removed by moderator)ut that you are mistaken.

Wealth management does not mean it is for “high net worth” individual or “rich” people. Ordinary people can and do use the bank’s wealth managemnet services to open IRAs, rollover 401Ks from a prior job, invest in mutual funds, start a college fund for their children, open a retirement account for a small business, buy stocks, bonds or treasuries, seek tax or estate planning, and any number things.

And one does not have to be a high net worth individual to do ANY of those things. In fact, one should do those things if one does not have high net worth.

 

[TheRealJuliane]

Yes, the definition does include families and small business owners. But just think about it. It’s called wealth management for a reason. The families and small business owners would need to have wealth that’s in need of managing. And really, if you have so much money that requires the service of a bank to help you manage it, you are certainly not poor. When you’re talking about wealth management, you’re talking about millions, not thousands.

You don’t like wealthy people do you?

 

[Allegra]

Good for you! Obviously, there’s nothing to prevent someone from making use of the wealth management services, regardless of the amount of money that’s in need of managing. That said, it’s how the bank has chosen to segment their customer base. It’s the way they have set up their services to cater to different segments within their customer base. Their employees in wealth management would have a different set of skills than those in consumer banking. Those in wealth management are probably better educated, better trained, and better paid. So in order for them to achieve the expected return on investment, they’d need to have customers who are, well, wealthy, to make it worth their while. If you went in for wealth management services, then that presents an opportunity cost to them, meaning that in providing you services, they’re missing out on the opportunity (time and resources) to provide services to a higher net worth individual, who could be a lot more profitable to them.

And really, you can’t use anecdotal evidence to conclusively prove anything, because it’s too small of a sample size, and it could very well be an outlier.

You might be a brilliant buisiness man but it seems obvious from this sample size that pretty much everyone understands “wealth management” to indicate the offices of the bank that are devoted to investments, special accounts, retirement funds, etc. I don’t know why anyone would want someone getting a spiel on a new IRA account clogging up the line of people who just want to make a withdrawl and change their address.

However, if you’ve really got your panties in a bunch over it and you just can’t get over the injustice of it all, you could always switch banks. I believe US Bank labels their banking areas as “tellers” and “personal bankers”. Maybe you would find that acceptable?

You don’t need a good reason to change banks. I changed banks once because I needed to quickly find out my balance and when I went in and asked, the snotty, little teller girl roller her eyes at me and said, “You know you can do this online, right.”

 

[BettyBoop416]

Wealth management does not mean it is for “high net worth” individual or “rich” people. Ordinary people can and do use the bank’s wealth managemnet services to open IRAs, rollover 401Ks from a prior job, invest in mutual funds, start a college fund for their children, open a retirement account for a small business, buy stocks, bonds or treasuries, seek tax or estate planning, and any number things.

And one does not have to be a high net worth individual to do ANY of those things. In fact, one should do those things if one does not have high net worth.

I spent several years working in the wealth management area of a mid-sized regional bank. (At my bank it was called the “private client group” as opposed to wealth management.) It is, indeed, for folks with over $500,000 in manageable assets. Yes, the retail banking group offers IRAs, mutual funds, a brokerage service, etc. And no, you don’t have to be rich to take advantage of those services. But the average retail customer with $1,000 in the bank isn’t going to get the personalized, kid glove service that a private client customer will get. (They’re not going to pay the outrageous fees either.)

 

[AllSeasons]

A fellow forum member kindly shared this link with me that could very well explain this observed behavior by Chase:

Banks target region’s wealthy (that’s where the money is)

Quoted from the article:

Affluent consumers have always been coveted by banks, but even more so during the weak economic recovery.

JPMorgan Chase launched its Chase Private Client service in Washington on Friday, starting in seven branches and aiming for 40 by the end of the year.

The service targets high net-worth customers with $500,000 to $5 million in investable assets, offering them better prices on investment products and a broader array of investments than the average customer.

Some branches will even have separate entrances and meeting rooms to give these clients more privacy.

 

[Lost_Wanderer]

Some branches will even have separate entrances and meeting rooms to give these clients more privacy.

And this is wrong… why? If I had ton a cash, you have no right to stick your nose in on it without at least a verbal form of warrant (and I say this term loosely).

If I had a stash of gold, you’d think me stupid enough to tell you where I buried it or who were with me when I made my deposit? :ehh:

 

[Havard]

And this is wrong… why? If I had ton a cash, you have no right to stick your nose in on it without at least a verbal form of warrant (and I say this term loosely).

If I had a stash of gold, you’d think me stupid enough to tell you where I buried it or who were with me when I made my deposit? :ehh:

You buried it on Easter Island, and you were with Captain Hook, Tupac, and Hadji from Johnny Quest. So… how close did I get?

 

[AllSeasons]

And this is wrong… why? If I had ton a cash, you have no right to stick your nose in on it without at least a verbal form of warrant (and I say this term loosely).

If I had a stash of gold, you’d think me stupid enough to tell you where I buried it or who were with me when I made my deposit? :ehh:

Quite frankly, I’m very surprised by your response. The bank is basically treating you differently based on how much money you have - call it wealth discrimination if you will - and doing so publicly and without shame. If say at a restaurant, they seated someone first, because he/she had more money than you or was more “important” than you, even though you had been waiting in line for hours, would you not be mad, offended, outraged? The bank is basically doing the same thing, saying someone else is “better” than you are, because he/she has more money. Every time someone uses that side entrance, it’s like a slap to the face, with the understanding that you’re not good enough to use the main entrance.

I don’t have anything against rich people, so long as they didn’t sell their soul to get rich. It’s the bank’s behavior that I find unconscionable.

 

[trevor1055]

I’ve banked with Chase for about 2 years and have not seen such an entrance. Interesting. I wouldn’t care, though. I don’t let a door offend me.

 

[_Jenn]

Yes, the definition does include families and small business owners. But just think about it. It’s called wealth management for a reason. The families and small business owners would need to have wealth that’s in need of managing. And really, if you have so much money that requires the service of a bank to help you manage it, you are certainly not poor. When you’re talking about wealth management, you’re talking about millions, not thousands.

I work at a bank. We have a wealth management department, & it is NOT, by any means, solely for rich people, & they work with people who have far, far less than millions. You could have nothing, but want to learn about what you should start to do at your age, & these people will meet with you, at the branch of your convenience.

Wealth management is not just about managing what you have, but learning what to do so that when it is time for retirement, you are financially prepared.

 

[AllSeasons]

I work at a bank. We have a wealth management department, & it is NOT, by any means, solely for rich people, & they work with people who have far, far less than millions. You could have nothing, but want to learn about what you should start to do at your age, & these people will meet with you, at the branch of your convenience.

Wealth management is not just about managing what you have, but learning what to do so that when it is time for retirement, you are financially prepared.

I don’t have anything against wealth management, per se. It is, after all, a service. However, the practice to treat their customers differently, based on the amount of money they have, does not sit well with me.

Going back to your comment, while it is true that not everyone who makes use of wealth management services is a millionaire, the truth remains that the vast majority of them do have more money than the “average Joe.” And you must know that the concept of segmentation is not an exact science; it’s an art rather. You’re going to have people who are at the higher end of wealth management clients and those at the lower end of wealth management clients. Just because you have a small number of wealth management clients who do not fit the bill, it does not change the intended targeting of the wealth management services, which are targeted at people who are considered rich.

 

[BettyBoop416]

The bank is basically treating you differently based on how much money you have - call it wealth discrimination if you will - and doing so publicly and without shame.

When you fly on an airline and buy a seat in coach, are you treated differently than the people in first class? Yes, you are. Are you being discriminated against because they have more comfortable seats and better food than you? No. The first class passengers are paying for the service they get. It’s the same at the bank. The wealth management clients are not treated better than the rest of us because they HAVE more money than us. They are treated differently because they are spending more money at the bank than we are. Those wealth management services come at a price.

 

[newf]

When you fly on an airline and buy a seat in coach, are you treated differently than the people in first class? Yes, you are. Are you being discriminated against because they have more comfortable seats and better food than you? No. The first class passengers are paying for the service they get. It’s the same at the bank. The wealth management clients are not treated better than the rest of us because they HAVE more money than us. They are treated differently because they are spending more money at the bank than we are. Those wealth management services come at a price.

Exactly.

I was just traveling on Delta and it makes me laugh the way they board people who are first class on the right side of the carpet and the rest of us on the left. Doesn’t bother me in the least. I chose not to travel first class and save my money for other things. If someone else wants to pay extra to have a cushier seat near the exit door, but still be able to crash with the rest of us if the plane goes down, that’s fine with me.