The concept of private banking goes beyond the concept of day to day banking transactions in order to address a person’s financial condition. It is a complete amalgamation of providing financial solutions, retirement planning and ways to pass on wealth to the future generation. The idea of private baking has been gaining ground in the recent times owing to the benefits provided to high-end consumers.
What is private banking?
Private banking can be defined as personalized banking and financial services, meted out to the bank’s HNWI (High Net worth Individual) clients. HNWIs are people who have potentially secured more wealth than the average person. Thus, they have in plenty of what is needed to make alternative and conventional investments. In such cases, private banks make an attempt to provide individuals with the most suitable types of investments.
Private Banking Personalised Services
1. Customers availing private banking services are entitled to highly personalised services. Each customer is assigned a relationship manager or an account to adopt a customised approach to asset management. Therefore, in case the need arises, the customer can directly communicate with the management.
2. Any private bank in India lends out discounted services to the HNWIs on the grounds of the substantial assets that they hold. For example, there might be a reduction in the foreign exchange rate for customers who are into export businesses.
3. These banks often provide investment returns that surpass the benchmark indices. HNWIs can easily influence the investments by using extensive resources in their possession. For example, an HNWI might gain access to a hedge fund that is performing par excellence in the market, via an affiliation with a private bank.
4. There is a large section of private banks that do not carry FDIC insurance. Therefore, an aggressive approach towards the management can usually prove to be quite beneficial for the investors. It can also lead to a great deal of profit for fund managers.
Almost every private bank in India is known to follow an open product platform, through which they claim their services to be unbiased. They firmly believe that the client is provided with the best of what they can avail in the field. Since the concept of a private bank revolves solely around understanding the needs of the clients and providing a relevant solution for the same, only a few banks define their proposition value as required.
What is private banking?
Private banking can be defined as personalized banking and financial services, meted out to the bank’s HNWI (High Net worth Individual) clients. HNWIs are people who have potentially secured more wealth than the average person. Thus, they have in plenty of what is needed to make alternative and conventional investments. In such cases, private banks make an attempt to provide individuals with the most suitable types of investments.
Private Banking Personalised Services
1. Customers availing private banking services are entitled to highly personalised services. Each customer is assigned a relationship manager or an account to adopt a customised approach to asset management. Therefore, in case the need arises, the customer can directly communicate with the management.
2. Any private bank in India lends out discounted services to the HNWIs on the grounds of the substantial assets that they hold. For example, there might be a reduction in the foreign exchange rate for customers who are into export businesses.
3. These banks often provide investment returns that surpass the benchmark indices. HNWIs can easily influence the investments by using extensive resources in their possession. For example, an HNWI might gain access to a hedge fund that is performing par excellence in the market, via an affiliation with a private bank.
4. There is a large section of private banks that do not carry FDIC insurance. Therefore, an aggressive approach towards the management can usually prove to be quite beneficial for the investors. It can also lead to a great deal of profit for fund managers.
Almost every private bank in India is known to follow an open product platform, through which they claim their services to be unbiased. They firmly believe that the client is provided with the best of what they can avail in the field. Since the concept of a private bank revolves solely around understanding the needs of the clients and providing a relevant solution for the same, only a few banks define their proposition value as required.
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