PCCW to give a date next week for B2C strategy
2001-06-21
Terms and Conditions
June 6, 2001 - Dao Heng Bank today announces the launch of its TOTAL PLUS banking service scheme, encouraging customers to use Dao Heng as their preferred bank.
Mr Randolph Gordon Sullivan, Managing Director of Dao Heng Bank and Overseas Trust Bank said, "TOTAL PLUS is a combination of innovative and value-added services with the objective of providing quality banking services and enhanced benefits to Dao Heng's customers. We use a revolutionary way in calculating customers' 'Total Relationship Balance', which is the sum of customers' assets and borrowings. With TOTAL PLUS, customers are not only rewarded with higher time deposit interest rates, but could also avoid paying service fees for individual savings or current account."
Mr Sullivan continued, "Hong Kong is entering a new banking era with the implementation of the second phase of the interest rate deregulation on Hong Kong dollar savings and current accounts on 3 July 2001. This will allow further liberalisation and diversification of the local banking industry. Increased transparency and better consumer protection are the key elements in the new banking era and Dao Heng will continue its tradition in delivering innovative and quality service for our customers. In 2000, we adopted a comprehensive Customer Relationship Management (CRM) system to analyse the pattern of our customers' savings, investments, borrowings and financial management style, allowing us a better understanding of our customers' behaviour and needs at different stages of life. Through CRM, we are able to devise creative products and service packages that are suitable for different customers of diverse backgrounds and needs. We are now making a step forward by offering our customers TOTAL PLUS, which rewards customers with better time deposit rates and a range of benefits. If a customer has an account each in Dao Heng Bank and Overseas Trust Bank, the balance of the two accounts will be added together to form the Total Relationship Balance."
Mr Sunny Cheung, Senior General Manager, Consumer Banking of Dao Heng Bank said, "The TOTAL PLUS banking service scheme is a revolutionary concept based on the total relationship between Dao Heng and its customers. The 'Total Relationship Balance' is the daily average balance of a customer's personal and joint name accounts including savings, time deposits, current accounts, investments, plus absolute value of their loan liabilities* such as personal loans, overdrafts, even credit card balance and mortgage loan balance. Every dollar of our customer's savings and borrowings will count. The higher their "Total Relationship Balance", the better time deposit interest rates they will enjoy. In essence, the more they bank with us, the more they benefit."
With TOTAL PLUS, Dao Heng calculates the appropriate Time Deposit Interest Rate Tier (see Appendix IV) for all its customers, based on their 'Total Relationship Balance' and the Dao Heng services they use. For example, our packaged-account customers enjoy higher time deposit interest rates than customers with single accounts, even if they are in the same interest rate tier.
Mr Cheung continued, 'Our TOTAL PLUS service scheme helps our customers enjoy higher time deposit interest rates and even free banking services. The "Total Relationship Balance" is the sum of assets and borrowings in the customer's personal and joint name accounts, and means an automatic upgrade for each customer.'
Under TOTAL PLUS, the calculation of "Total Relationship Balance" will commence on 1 June 2001. With effect from 3 July 2001, Dao Heng will offer the preferential time deposit interest rates to its customers, based on their "Total Relationship Balance". Mr Sunny Cheung added, "In order to get a higher 'Total Relationship Balance' and thus higher time deposit rate, customers should consolidate their personal and joint name accounts with Dao Heng during this period. In conclusion, the more customers bank with Dao Heng, the higher deposit interest rates and the better offers they enjoy."
From 1 July 2001, there will be a minimum 'Total Relationship Balance' requirement of HK$4,000 or equivalent per month, applicable to regular customers who do not have packaged accounts with Dao Heng. If a customer's 'Total Relationship Balance' falls below this requirement, a monthly service fee of HK$30 will be charged per customer with effect from 1 August 2001.
Under the new policy, the monthly fee will be waived from the following groups of customers: (i) customers aged 65 or above; (ii) customers aged below 18; (iii) existing Dao Heng customers receiving welfare allowances from the Hong Kong Government or; (iv) customers receiving disability allowances. The above requirements do not affect the bank's packaged account customers, who will continue to enjoy the service with the same fee structure.
Dao Heng also announces that all customers would be waived from the application fee and annual fee for the use of ATMs with effect from 1 July 2001.
In view of the interest rate deregulation on 3 July 2001, Dao Heng will also launch a four-tiered 'Dao Heng Savings Rate' structure (see Appendix VIII) to replace the existing mechanism where the Hong Kong Association of Banks determines savings rates for local banks. According to the new 'Dao Heng Savings Rate', customers will be given savings interest regardless of the account balance of their savings account. Details of the interest rates will be announced at the end of June.
Dao Heng will send letters to its customers in the coming three weeks, notifying them about the new service scheme and charging policy. For more details of the TOTAL PLUS service scheme and other criteria for monthly service fee and exemptions, please refer to Dao Heng's leaflet on the scheme. Customers can call the Bank's hotline at 296 12345 or visit Dao Heng's website at www.daoheng.com or any of its branches for details.
* Excluding loan balances in default.
Re-disseminated by The Asian Banker
Terms and Conditions
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