Wikipedia of Finance - Wiki-Financepedia - What is Private Banking and Services offered by Best Banks

What is Private Banking and Services offered by Best Banks


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
6 Citibank^ USA Approx. $550
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
11 BMO^ Canada Approx. $326
12 Deutsche* Germany Approx. $292
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
17 Santander^ Spain Approx. $218
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

Brand Valuation:

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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