Private banking services are designed for people with substantial assets, and customers will receive a far more individual service, with personal attention from their account manager, than they would receive if they had a personal account with a high street bank.
Along with the usual banking services, such as mortgage arrangement, credit card services and loans, private banks usually offer a range of wealth management services including investment services, and trust and fiduciary services.
Private banks once had the reputation of being used by royalty and upper class families, but today they are used by many professionals, including wealthy businessmen and business women, sportsmen and women, young city slickers and entrepreneurs, who want to ensure that their money is managed effectively.
What are the benefits of private banking?
The main benefit of private banking is that you will get a more individual service than you will from a high street bank. You will be able to build a close relationship with your account manager, and he or she will have a far better understanding of your financial situation, needs, wishes and attitude to risk than the average bank manager.
You will be able to speak to your account manager directly rather than having to deal with call centre staff or members of staff who don’t know you, and your account manager will be your point of contact for every aspect of the management of your account.
You can take advice from your account manager on a range of wealth management and investment products, and you can choose to be actively involved in the management of your portfolio or leave the decisions entirely in your bank’s hands. Most private banks offer both of these services.
Good private banks can provide advice on many financial areas that are relevant to High Net Worth Individuals including alternative investments (private equity, wine, gold, art etc.) and succession planning for those operating family businesses.
Private banks are also known for the discretion with which they deal with their clients’ financial matters. Although, of course, aspects of everybody’s finances have to be declared to the relevant authorities, most reputable private banks pride themselves in their confidentiality, a quality that is particularly important if you are trusting a bank with your personal wealth.