subject: Intro. To Private Banking [print this page] Most of the people operating savings and checking accounts in the U.S. have a liquid net worth of less than $100,000 even though they may possess tangible assets that when combined exceed $100,000. To bank with a private bank an individual must have a minimum of $250,000 in liquid assets.
Private banking gives you customized and personalized service where the client is assigned a financial manager or adviser who will oversee the management of his financial portfolio of investments. Retail banks offer a variety of services and products to their clients such as checking accounts and investment services which can help them to increase their income. They also provide loans for college, automobiles and homes. Some might offer insurance schemes as well.
In private banking they have a wide array of financial products that are tailor made and customized as per the financial requirements of the client. They may need access to flexible lines of credit, management of financial portfolio in differing currencies or tax advice. As these clients can have businesses in various countries they may require assistance in handling complex financial regulatory requirements.
Once a financial adviser is designated to handle a valued customers financial portfolio he will work closely and in alignment with the clients best interests in mind. The manager or adviser goes ahead and designs a financial structure that is entirely customized to the clients requirements and specifications. This will include protection for the clients investments, expansion of assets, retirement and estate planning etc.
Private banking institutions also cater to clients who are worth more than $1 Million as it provides greater financial resources and flexibility. This also allows the fund manager to customize financial solutions that would include other options as a part of the alternate investment plan. The point to bear in mind here is that the options that will be made available are subject to the clients asset liquidity. This industry like the entire financial markets is extremely competitive with each bank trying to out do the other in terms of services and facilities.
Of all the banking types available private banking is the most unique in terms of facilities and services that are offered to a client. Its main objective is to exclusively manage a clients financial assets such as real estate, cash, orthodox and traditional investments, insurance etc. all are taken care of by a financial manager or adviser. He will also guide the client about the taxation rules and regulations that would be applicable to his portfolio. He further assists in setting up a retirement and an estate plan. For those who are of high net worth and need specialized solutions it a perfect match.
