Private banking vs wealth management

While private banks may offer these services as part of a wealth management unit, dedicated wealth managers do not take deposits or offer ... Privatebankingvswealthmanagement.Thesearetermsthatoftenoverlapandareusedinterchangeably.Thisispartlybecausethemajorityofmajorprivatebanks –UBS,CreditSuisse,JuliusBaer,Couttsetc–alsoofferawealthmanagementservice,asdothelargehighstreetnameslikeHSBCandBarclays. However,notallprivatebanksofferwealthmanagementandcertainlynotallwealthmanagersofferprivatebanking. PrivateBankerInternationalexaminesthedifferencesbetweenthetwoandhowthegreyareaislikelytobecomelessmonochromeintheyearsahead. Whatisprivatebanking? Inthesimplestterms,privatebankingislikenormalbankingbutwithmoremoney.Whilemostretailbankaccountscanbeopenedwithloosechange,privatebankingclientsarerequiredtopossessasizeableamountofwealth. Howmuchwealthvariesfromonebanktothenextbutgenerallyspeaking,thebenchmarkisasix-figuresumincashorsevenfiguresinassets.Whiletheproductsthataprivatebankprovidesdonotdiffergreatlyfromthatofaretailbank(currentaccounts,creditcards,loans,mortgagesetc),amorepersonalisedanddedicatedlevelofserviceisprovided. Related News SavantWealthbacksAustralianfintechfirmLumiant News BrooklynInvestmentGroup,Apexpartnertorolloutnewoffering News India’sKotakInvestmentAdvisorslaunchescuratedinvestmentplatform Andwhataboutwealthmanagement? Wealthmanagementisaimedathigh-net-worthindividuals(HNWIs)lookingforadviceandassistanceinmanagingtheirsubstantialportfolioinlinewiththeirgoals.Thisincludesgrowththroughinvestment,transferringassets,minimisingthebiteofthetaxmanand,occasionally,charitablegiving. Whileprivatebanksmayoffertheseservicesaspartofawealthmanagementunit,dedicatedwealthmanagersdonottakedepositsorofferlendingbecausetheydonothaveabankinglicence.Similarly,whileprivatebanksdonotnecessarilyofferguidanceoninvesting,thisisfundamentaltoawealthmanagementservice. Privatebankingvswealthmanagement: whodoeswhat? Themajorityoftheworld’slargestfinancialinstitutionsofferbothprivatebankingandwealthmanagementservices,butthereareanumberofwell-knownexceptions. Hampden&CoisoneoftheUK’snewestprivatebanks anddoesnotofferwealthmanagement.Anothernewplayer, MetroBankisahigh-streetbankthatoffersprivatebankingbuthasnotyetventuredintowealthmanagement.Someoftheoldestbanksintheworld,likeC.Hoare&Co(founded1672),arealsoprivatebankingonly. Ontheothersideofthecoin,CloseBrothers,RathbonesandBrooksMacdonaldareexamplesofpurewealthmanagerswhodonotofferbankingservices.Theirclientswilltypicallyusethemtoexpandtheirportfolioswhileusingaprivatebankfortheday-to-daymanagementoftheirfinances. UBSisoneofanumberofbankswhoarelessvocalabouttheirprivatebankingservicethanwealthmanagement PrivatebankingPR Manymajorbanksarenowincreasinglymorevocalaboutwealthmanagementthanprivatebanking.DeutscheBankandRBC,forexample,bothhaveseparate.com’ssetupfortheirwealthmanagementofferingbutnotprivatebanking. UBSmeanwhiledoesnotevenhaveprivatebankingamongtheserviceslistedonitshomepage. Thismayindicatetheyfeeltheterm“privatebanking”looksincreasingly passéin2019,suggestinghigh-browedelitismorevensecrecy.Inapost-2008world,financialinstitutionsmayhavedecidedthatprivatebankingismoreofanunder-the-counterservicethansomethingtheyshoulddisplayproudlyintheirshopwindow. Wealthmanagementexperts Wealthmanagement,bycomparison,soundsopenandinclusiveandisgenerallyfreeof2008-inducedbaggage.ItsegalitarianstandingisalsohelpedbytheprevalenceofinvestmentappssuchasNutmegandBetterment,bringingpeoplewhoarenotultra-wealthyorinstitutionalinvestorsintothewealthmanagementsphere. Certainprivatebanksmaywellbegintoseewealthmanagementamorelucrativearea,particularlyiftheythinkithasincreasedresonancewiththeyoungergeneration. CreditSuisse,forone,haspublicallypivotedtowealthmanagementinrecentyears,aspartofthetop-to-bottomrestructuringunderCEOTidjaneThiam,whichhasseenreducedoperationsinSouthAfrica,Canada,BrazilandRussia. Astheincreasingcostsofamorestringentregulatoryenvironmentandthedemandfortransparencymountup,CreditSuisse’sstriveforspecialismmaybeonethatotherprivatebanksfindthemselvescompelledtofollow. RelatedCompanies JamieCrawley NEWSLETTER Signup Ticktheboxesofthenewslettersyouwouldliketoreceive. PrivateBankerInternationalWeeklyRoundup Aweeklyroundupofthelatestnewsandanalysis,senteveryWednesday. PrivateBankerInternationalDigitalEdition Theindustry'smostcomprehensivenewsandinformationdeliveredeverymonth. Jobtitle Administrative Advertising/Marketing/PR/Product/Brand Audit/Accounting/Finance BoardLevelManagement Buyer/Purchasing/Procurement Compliance/Regulation/Risk Distribution/Logistics/SupplyChain Editorial/Media Engineering Facilities GraphicDesign/Design/Architecture HumanResources(HR)/Training/Education InformationManagement InformationTechnology Legal MedicalPractice Operations Politics Production/Manufacturing/Maintenance ProjectManagement Research/Development Safety/Security Sales/AccountManagement/CustomerServices/BusinessDevelopment Service/ProductManagement Strategy/Planning Web&Digital IconsenttoGlobalDataUKLimitedcollectingmydetailsprovidedviathisforminaccordancewiththePrivacyPolicy Signup SUBSCRIBED THANKYOU ThankyouforsubscribingtoPrivateBankerInternational