What is a Personal Banker and Do You Need One?

As banks merge with other banks and take on more automated services, it becomes increasingly difficult to find that personal service we used to all take for granted. Branch bank tellers are quick to route their customers to ATM, 1-800, and on-line banking services, while loan officers change as quickly as the seasons. This may be the future of banking, but is incredibly frustrating for customers who need a "real" person to answer questions about their banking accounts.

1-800 numbers can't explain why a free checking account is suddenly being charged a service fee, why an account has been charged for non-sufficient funds, or what is the best type of mortgage for our homes.

The personal banker

Many larger banks now offer a service called the "personal banker." A personal banker can be teller, loan officer, or even a branch manager whose job is to provide personal service to a select list of clients with specific banking needs.

A personal banker manages a customer's account much the same way a securities broker might manage a portfolio. They can advise a client as to investment options and have CD and money market rates at the tip of their fingertips. They also know what sorts of loans or mortgage options are available, the current interest rates and projected trends, and how to fast track the application. A personal banker is highly knowledgeable about all the different services your bank offers and even fix the mysterious fees that sometimes show up in a checking account.

Personal bankers aren't anything new. This individualized service has been around for years to help the affluent manage their bank accounts. But, as we baby boomers are aging and growing in personal wealth, we are needing more help with investment and financing options than a mere 1-800 number can offer.

When we applied for a business loan several years ago, it was our personal banker who put together the loan application for us. She was able to leverage money from our home and other investments, then invested the funds in a short-term renewable money market while the project was underway. Her knowledge got us the best possible loans for the project, and even earned us interest income in the interim.

Since that time, our personal banker has streamlined several other loans for us as well, and continues to keep an eye on all our accounts to make sure that automatic debits and credits are happening when they should be. Best of all, when there's a mysterious fee showing up on the account that shouldn't be there, our personal banker can take care of it over the phone, instead of directing us to a 1-800 number.

Smaller credit unions and some Savings & Loans still offer this type of personalized services to all their clients. But for those of us who bank at large commercial bank to take advantage of the wide range of options and traditionally lower interest rates, a personal banker makes the job of financial management so much easier.

The personal banking service is no longer limited to the affluent. Anyone who regularly borrows money for a new home or home improvement project, or invests in money market or CD funds, is eligible for a personal banker. Most banks do not charge for this service as long as the client maintains a certain minimum investment balance. How do you find out about this personalized banking service? Simply ask your branch manager for a referral to a personal banker who can handle all your mortgage, investment, and banking needs.