Private Banking Definition:
Private banking is the bank that provides customised financial solutions to high net worth individuals or those who belong to higher income class. Private Banks aims to provide best investment and wealth management products for those high net worth individuals who can invest large amount of money. Services provided by private banks includes protecting assets, investing into assets, retirement planning, customised financial solutions, safeguarding wealth for next generation, etc.
Private Banks provide specialized and dedicated relationship manager for an individual who are willing to invest amount between Rs.32,50,000/- (around $50,000) to Rs.3,25,00,000 (around $5,00,000) whereas some of the largest private bank only provides dedicate financial services for an individual who’s investment size is more than Rs.3,25,00,000 (around $5,00,000). Private Banks plays an important role in wealth management for affluent class of individuals.
The Largest Bank in the world known as Private Wealth Management Bank or Largest Private Banks:
Here we will present list of top Private Bank (or private banking divisions/subsidiaries of large bank holding companies) in terms of AUM (Assets under management), as of start-2015 are:
|Rank||Bank||Country||AUM (in US$ billion)|
|1||Union Biblical Seminary (UBS)^||Switzerland||Approx. $2,035|
|2||Morgan Stanley^||USA||Approx. $2,025|
|3||Bank of America*||USA||Approx. $1,984|
|4||Credit Suisse^||Switzerland||Approx. $883|
|5||Royal Bank of Canada (RBC)^||Canada||Approx. $704|
|7||JP Morgan & Co.*||USA||Approx. $428|
|8||BNP Paribas^||France||Approx. $370|
|9||HSBC Bank^||UK||Approx. $365|
|10||Goldman Sachs Group, Inc.^||USA||Approx. $363|
|13||Julius Baer Group^||Switzerland||Approx. $289|
|14||ABN AMRO^||Netherlands||Approx. $231|
|15||Wells Fargo^||USA||Approx. $225|
|16||Northern Trust^||USA||Approx. $224|
|18||Bank J. Safra Sarasin^||Switzerland||Approx. $213|
|19||BNY Mellon*||USA||Approx. $191|
|20||Crédit Agricole^||France||Approx. $171|
^ = Private Bank and Wealth Management
* = Global Wealth, Asset and Investment Management
Some of the banks offer integrated solutions to meet their customers financial and business needs under one roof. Few of the bank claims to be the best among private bank with strong advisory team and past data reveals their product and brand valuation.
In recent years, private banks are able to provide their personal finance and relationship management services internationally thru the medium of internet and mobile banking. Modern research says that numbers of high net worth individuals are sinking in developed countries like Europe whereas number of billionaires and millionaires are growing at the faster rate in Asia. Technology of online banking has ensured banking services to customers without exclusive branches. Due to technology this shift of money flow between countries is no more barriers to banks that have gain a good brand valuation in private banking sector.
Private banks have to put great efforts for lead generation via wholesale banking or tie ups with corporate or retail banking or other revenue sharing module for attracting new customers. Whereas good branded private banks doesn’t have to rely heavily on banking networks. They are mostly relied on client referrals. A referral to friends or family members are the primary source of lead generation for branded banks since they provide exclusive services and support to retain their client confidence.
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Basics of Banking and Financial Services for Beginners
- Chapter 1: What is Bank and Role of Bank in Economic Development
- Chapter 2: Different Types of Financial Services Provided by Banks
- Chapter 3: Different Types of Banking and Financial Institutions
- Chapter 4: What is Retail Banking and Services provided by the Banks
- Chapter 5: What is Commercial Bank and Services offered by Banks
- Currently Reading: What is Private Banking and Services offered by Best Banks
- Chapter 7: What is Investment Banking and Services offered by Bankers
- Chapter 8: What is Investment? How to Start Systematic Investment Plan?
- Chapter 9: What is Fixed Income Securities Market?
- Chapter 10: What are Bond Funds? Difference between Stocks and Bonds
- Chapter 11: What is Stock Market? How to Invest in Stock Market?
- Chapter 12: What is a Mutual Funds? Types of Mutual Funds with Examples
- Chapter 13: What is Futures Trading? How to Trade in Future Contracts?
- Chapter 14: What is Options Trading? How does Options Trading Works?
- Chapter 15: Banking Quiz - Basics of Banking and Financial Services for Beginners
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