CandleFocus

Private Banking

Private banking is a financial service, offered by banking institutions, catering to high-net-worth individuals who have significantly larger amounts of wealth than the average person. Private banking customers benefit from customized investment advice, potentially discounted fees, access to exclusive investments, and dedicated relationship management.

Services provided by private banking institutions range from basic managed portfolios to comprehensive wealth management. Private banking customers have access to a private banker or wealth manager who understands their individual needs and investments, and can develop strategies to help grow their wealth. Private bankers provide tax planning and advice, estate planning and protection, and succession planning. Private bankers can also provide lifestyle assessments, to ensure that the HNWI’s investments will lead to the desired lifestyle.

Another attractive aspect that private banks offer is access to exclusive investments such as alternative investments, private debt, and venture capital, which are not available to the general public. Many private bankers also have access to private equity transactions that can provide lucrative returns.

Private banking may also be associated with certain privileges, such as access to credit facilities, lending services, budgeting advice, and banking secrecy. Private banking customers often get priority access to services and preferential pricing on products.

Overall, private banking offers many benefits to the HNWI customer, such as access to exclusive investments, personal relationship management, and potential savings on fees. Fees for private banking services are typically higher than traditional banking services, but the return on investment can be significantly higher due to increased access to exclusive investments and personalized advice.

Glossary Index