Banking is tailored to specific demographics and not every method suits the general populace. For instance, there is a vast difference between private banking and wealth management systems. You may not be aware of the distinction between the two, but these differences are vital for you to choose the right form of banking.
Here is a look at some of the differences between private banking in India and the wealth management systems.
1. Service range
Private banking mainly deals with business asset management. However, the services that fall under it include banking, brokerage and overall asset management. It also offers simple tax consulting services.
Wealth management, however, deals with deeper concerns when it comes to business finance. The service deals with asset allocation, tax planning, family arbitrage, pensions, estate planning and even philanthropy.
2. Choosing services
Private banking offers select packages for people considered to have a high net worth or for people considered to be having ultra-net worth. These packages cannot be modified to suit the needs of a particular client.
In case of wealth management systems, however, the bank offers a consultant who deals with the needs of each client individually. For instance, one client may require philanthropy consultation while the other may be more concerned about estate planning.
3. Options offered
Private banking in India usually deals with limited services that the particular bank may be offering. This means that as a client you are bound to sign up to one of the services offered by the private bank you are affiliated to.
A wealth manager on the other hand is a person who does not work for any particular bank. So, he/she will consider the services offered by all banks and choose the one that is best suited for you and your needs. This is why people who sign up for a wealth management service may use several banks at once.
4. Focus on client’s needs
Since private banking offers just a few choice packages, there is very little need to understand the individual needs of the client and form a relationship with them. This means that there is very little interaction with clients and you, as a client, cannot seek special treatment from the bank.
However, a wealth manager begins his work by forming a deep relationship with the client. This gives them the opportunity to judge the financial situation and the needs of the client in question.
Here is a look at some of the differences between private banking in India and the wealth management systems.
1. Service range
Private banking mainly deals with business asset management. However, the services that fall under it include banking, brokerage and overall asset management. It also offers simple tax consulting services.
Wealth management, however, deals with deeper concerns when it comes to business finance. The service deals with asset allocation, tax planning, family arbitrage, pensions, estate planning and even philanthropy.
2. Choosing services
Private banking offers select packages for people considered to have a high net worth or for people considered to be having ultra-net worth. These packages cannot be modified to suit the needs of a particular client.
In case of wealth management systems, however, the bank offers a consultant who deals with the needs of each client individually. For instance, one client may require philanthropy consultation while the other may be more concerned about estate planning.
3. Options offered
Private banking in India usually deals with limited services that the particular bank may be offering. This means that as a client you are bound to sign up to one of the services offered by the private bank you are affiliated to.
A wealth manager on the other hand is a person who does not work for any particular bank. So, he/she will consider the services offered by all banks and choose the one that is best suited for you and your needs. This is why people who sign up for a wealth management service may use several banks at once.
4. Focus on client’s needs
Since private banking offers just a few choice packages, there is very little need to understand the individual needs of the client and form a relationship with them. This means that there is very little interaction with clients and you, as a client, cannot seek special treatment from the bank.
However, a wealth manager begins his work by forming a deep relationship with the client. This gives them the opportunity to judge the financial situation and the needs of the client in question.
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