Enhancing the value proposition of priority Banking in SriLanaka

Abstract

Priority banking has become a vital strategic focus for banks and financial institutions aiming to retain and grow affluent, high-net-worth client segments. In Sri Lanka, despite significant investments in branded premium offerings, evidence suggests that the actual value perceived by customers often falls short of expectations. Past studies highlight key issues, including a lack of personalization, insufficient digital integration, reactive relationship management, and limited lifestyle benefits. Customer feedback reinforces this gap, with many clients perceiving “priority” services as symbolic rather than substantive. This research investigates how Sri Lankan banks can enhance the value proposition of their priority banking services by aligning more closely with evolving elite customer expectations. Using a mixed-method approach, the study integrates surveys and interviews with relationship managers and priority clients in certain states and private banks in Sri Lanka, supported by secondary data from reports and academic studies. Findings reveal that while customers value exclusivity and trust, true loyalty is undermined by generic service delivery and limited proactive engagement. To address these gaps, this study proposes the P.E.A.K. Model, a strategic framework emphasizing Personalization (tailored financial and lifestyle solutions), Experience Integration (seamless digital- physical journeys), Anticipation (proactive, predictive engagement), and Knowledge Empowerment (financial literacy and advisory tools). The model underscores the importance of leveraging AI- driven personalization, omnichannel CRM, and well-trained relationship managers to create a more differentiated and meaningful client experience.