Confidentiality and personalized services. Perhaps these two factors separate private banking from its typical retail banking counterpart, helping clients make informed and strategic financial decisions that can potentially deliver long-term and short-term profits.
Private banking is a personalized type of financial and banking services that are usually available to high-earning entities who own substantial investment assets. With private banking, these high net-worth individuals (HNWIs) can choose from a wide variety of options that are often customized based on their financial preferences as well as future financial goals.
Clients of private banks have their own relationship managers or a private banker to guide them on how to handle and manage their assets. In addition, they enjoy more sophisticated products as well as a more focused and tailored customer service experience.
One of the primary reasons why HNWIs choose private banking is its dedication to client privacy. Generally, dealings between the bank and its client remain anonymous, promising a high level of confidentiality in every transaction.
In addition, because of HNWIs’ substantial assets, private banks offer generous discounts on their services. For instance, clients involved in an export enterprise can benefit from a more favorable foreign exchange rate. Not only that, investors are given the opportunity to have an exclusive access to several top-performing hedge funds, just by being affiliated with a private bank.
Although the lessons of the global financial crisis in 2008 made authorities impose a more stringent and often restrictive regulatory setting for private banks, these changes, have actually helped ensure that clients get the best and most appropriate financial advice that they deserve.
For more insights on private banking, consult with an advisor from one of the leaders in the industry, LOM Financial.