Bank of Boston bets on splashy approach to advertising.

Bank of Boston is coming on strong with a new advertising campaign for its private banking services.

The ad splash is the first since the New England bank recruited Susan Haney from the Boston Co. to reorganize private banking in early 1990.

The one-page and two-page spreads are appearing in The New York Times Magazine and regional editions of upscale publications like Business Week and Town and Country. The ads began running last month and will continue through early next year.

Silk-and-Gold Approach

"It's my job to know what my clients need before they do," reads one ad, depicting a full-page portrait of Judy Staubo, an account executive dressed in a creamy-white blazer, white silk blouse, and gold accessories.

Other spreads feature trust officers and investment counsellors.

Many banks forgo advertising private banking and trust services, relying instead on more discreet word-of-mouth marketing among affluent clients and their friends. But Bank of Boston officials said they want to promote a new effort to dedicate teams of officers to handle a client's banking, personal trust, and investment needs.

"It's more of an imaging ad," said Susan ?Dick, the division's national director of sales. "Why not show them the professionals, hypothetically all the professionals, that might appear on the team with them."

Ms. Dick, whose phone number is included in each ad, said several dozen potential customers have called each day or written to the bank since the ad campaign began.

Ms. Haney aims to gain 5,000 new clients in the Northeast and Florida within the next three years. She estimates that each could represent $10,000 a year in fee-based income.

Commercial Bank of New York, which was set up by Brazil's Safdie family three years ago, is putting out linen for a party celebrating next week's opening of a branch on Manhattan's Fifth Avenue.

The office, the bank's second, is expected to handle both commercial and private banking business. Commercial Bank, headquartered next to the Waldorf Astoria Hotel, plans to open a new branch every year, said Jacob Berman, the bank's president.

Private banking makes up half of the bank's $410 million in deposits and about 40% of its $102 million loan portfolio, he said.

Steady Progress Since '88

While hardly in the big leagues of private banking, Commercial Bank has grown steadily since opening in 1988, according to Mr. Berman. Its assets have grown to $450 million from $329 million at the end of last year. Mr. Berman has a target of $500 million by yearend.

About 60% of Commercial Bank's private banking clients are South Americans and Europeans, Mr. Berman said, adding that he is striving for a greater mix of international and domestic business. As part of that effort, the bank will soon unveil an advertising campaign in The New York Times and make a concerted effort to have lending officers call on midtown businesses.

Morgan Guaranty has shifted some private banking officers, making Finn Longinotto head of a group serving northern European clients from Zurich.

He was a vice president in the international private banking division, serving Argentinian customers from the bank's New York office.

A bank spokeswoman said Mr. Longinotto replaces Markus Graeff, who left the bank. Mr. Longinotto reports to William Oullin, managing director of J.P. Morgan (Suisse).

Morgan's private banking operation in Switzerland is headquartered in Geneva.

AMERICAN BANKER /Banker Rate Monitor's [TM]

Consumer Money Index

Personal loan rates and fees

Here are the personal loan rates and fees charged by selected large banks and thrifts nationwide on October 1. The rates are for a $3,000 unsecured personal loan with a fixed rate and a 24-mo. term. The 8-week trend is based on rates charged by the 10 largest banks and thrifts in each of the nation's 10 largest markets on the dates shown.

BanksBANK RATE FEESAmerican Security Bank, 17.90% None Washington, D.C.Corestates Bank, 14.24 None PhiladelphiaFirst Interstate Bank, 18.00 None HoustonMellon PSFS, 15.00 None PhiladelphiaRiggs National Bank, 16.00 None Washington, D.C.

ThriftsTHRIFT RATE FEESCitibank, 16.00% None Washington, D.C.Crossland Savings Bank, 17.00 None New YorkGermantown Savings Bank, 16.49 None PhiladelphiaNeworld Bank for Savings, 17.00 None BostonStandard Federal Bank, 15.00 None Troy, Mich.Source: [C] Bank Rate Monitor, North Palm Beach, Fla.33408. All inquiries: (407) 627-7330

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