What Is Private Banking
Private banking is a term which refers to the service provided by financial institutions like banks to private individuals who have the power to invest a considerable size of assets. The service is basically exclusive, catering mainly to people who have a big fortune. Until recent years, private banking was a service that was open to people who had a liquidity worth of at least two million dollars but now individuals can take advantage of private banking with a starter sum of $250,000. There are many banks around the globe that offer such services to their more wealthy clients and many can actually boast a collection of assets worth more than a trillion dollars, gathered from their various affluent clients.
Private banking encompasses many things. A host of services is provided to clients when they choose private banking and these are inclusive of wealth management, tax planning, investment planning and inheritance planning as well as savings. In short it is a concept pertaining to dealing with the personal finance portfolio of the rich people, or more well-off people, of the society. With private banking individuals are given a total and complete picture of their wealth in simple terms and are given advice on how to achieve their personal goals that have to do with their money.
Customized strategies are fully planned out and passed onto these clients, then their approval is taken and a specialized team set in place only to deal with private banking clients start working to attain the goals set out. The fact is that everyone will have different ideas about how to invest their wealth and how to save better and the best solutions are presented to them completely along the lines of how unique the situation is. One of the main services provided with private banking is the planning ahead factor. Most banks encourage their wealthy clients to invest in a way that there is an additional source of income and the future is secured financially for the coming generations.
Because private banking is offered to people who are wealthy, another aspect that comes into play is the fact that such people tend to have a lifestyle that many people cannot comprehend. There are investments into multiple houses, maybe art, perhaps sports cars and so on. Private banking to offer specialist advice into the management of such activities including advice on tax, media and even philanthropy, something which is often taken for granted when it comes to wealth. Financing is offered if and when needed as well.
In general most banks that offer private banking will take their fees in a fixed amount that is based on how the portfolio of the clients finances perform while others will send a charge that has to do with the number of transactions that took place across any given year. Such banks also tend to offer global private banking meaning that they have branches across the world so that if their clients move home, they dont have to worry about moving their banks too.
Private banking encompasses many things. A host of services is provided to clients when they choose private banking and these are inclusive of wealth management, tax planning, investment planning and inheritance planning as well as savings. In short it is a concept pertaining to dealing with the personal finance portfolio of the rich people, or more well-off people, of the society. With private banking individuals are given a total and complete picture of their wealth in simple terms and are given advice on how to achieve their personal goals that have to do with their money.
Customized strategies are fully planned out and passed onto these clients, then their approval is taken and a specialized team set in place only to deal with private banking clients start working to attain the goals set out. The fact is that everyone will have different ideas about how to invest their wealth and how to save better and the best solutions are presented to them completely along the lines of how unique the situation is. One of the main services provided with private banking is the planning ahead factor. Most banks encourage their wealthy clients to invest in a way that there is an additional source of income and the future is secured financially for the coming generations.
Because private banking is offered to people who are wealthy, another aspect that comes into play is the fact that such people tend to have a lifestyle that many people cannot comprehend. There are investments into multiple houses, maybe art, perhaps sports cars and so on. Private banking to offer specialist advice into the management of such activities including advice on tax, media and even philanthropy, something which is often taken for granted when it comes to wealth. Financing is offered if and when needed as well.
In general most banks that offer private banking will take their fees in a fixed amount that is based on how the portfolio of the clients finances perform while others will send a charge that has to do with the number of transactions that took place across any given year. Such banks also tend to offer global private banking meaning that they have branches across the world so that if their clients move home, they dont have to worry about moving their banks too.
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