As the need for a strong foundation for our financial affairs increases, private banking is looked at as a great option. Private banking is relationship banking with a professional advisor to take care of the banking, investment and other financial needs. This means the customer service rendered is more personal than it is with retail banking.
Nowadays, private banking has grown huge into a global industry and all the main banks have started their own separate private banking operations. Apart from banks, there exist other specialist institutions, some of which are well-known for their services. Some of these financial institutions and banks assign “private bankers” to their privileged clients, in order to facilitate their regular banking needs. They arrange meetings that fit the client’s schedule and things are taken care of with just a phone call from the client.
Earlier, private banking was meant to be a facility for high net worth individuals with liquidity in millions and designed to help them maintain and grow their wealth. It has become extremely competitive and there are many doors open for people, and even an individual with a five figure income can get an entry. This may not be a small sum but at least millions of dollars are not required like before. If the individual has $100,000 or more, then there is no limit to private banking agents that will pop the kettle.
The idea behind this innovative method of banking is that making money is much easier if there is some to spare initially. It can be grown through several investment opportunities, offshore portfolios, tax avoidance schemes etc. The consolidation of an individual’s or institutional finances coupled with the resources provided by the financial institutions makes it a powerful combination.
Leading financial institutions that provide private banking, offer services such as fiduciary and banking solutions, tax planning, asset and fund administration, investment management, wealth management etc. to affluent individuals, institutions and corporations. They help guide the clients in the right direction. Basically, clients will get a better class of service than the local banks.
As we all know, investment today is completely different from what it was before. It is now all about goal setting and making prudent and informed decisions. Most people need help with this and this is where private bankers can be of immense help and be the experienced and knowledgeable advisors people are always searching for. These people understand the ups and downs in the economy and the markets, and work with their clients to identify their needs for income, capital, liquidity and investment objectives.
However, not all can be trusted as there are many that charge higher but provide no value. When dealing with offshore private banks, there is the problem of not having any legal protection. It is important to take into consideration the reputation of the financial institution and not go with fly-by-night operators.
As global markets have grown more complex, to stay in tune with the fast-paced business scenario, many leading private banking institutions have come up with custom tailored and sophisticated investment plans for their clients. It could be anything that a client is looking for; right from securing a comfortable retirement, reduction of taxes, saving for children’s education, life insurance plans, pension plans or even capitalizing on existing investment opportunities.
Private banking brings that extra financial advantage to clients; the ability of bankers to listen to their clients’ aspirations, needs, concerns and financial dreams. When using a reputable financial institution, clients usually have a lasting relationship with their private bankers for years. Clients look towards them to provide solutions of high standard, which affords them the peace of mind they long for.