Private Banking- who is it for?
What is private banking?
This service is addressed only to the wealthiest and most demanding bank customers. This elite service includes: individually tailored offer, own advisor and reliability of banking services.
As part of the standard private banking service, a wealthy client may receive a long-term personalised wealth management offer. As part of these services, most often it is also servicing current financing. Each product offered to such a client is tailored to their individual needs.
As part of private banking, wealthy clients receive prestigious credit and debit cards, individually prepared deposit and savings programs and rentier deposits. Very often clients in private banking receive legal and accounting support as well as in philanthropic activities, private medical care and support in investing in the real estate market.
What clients is private banking for?
Private banking is reserved only for the richest people. For a bank, a wealthy customer is a “sure” customer. There is a minimal risk that debts in his name will not be paid on time. Thus, the bank does not have to worry about losses in the form of unpaid debt.
A wealthy client means high assets that will be deposited in a bank in order to multiply them and get more profit from them. As a result, the bank will invest capital that will allow it to finance loan products for average customers.
What must the amount of assets be to use this service?
There is no clear answer to this question, as banks are very flexible in this matter. Most often, to become a VIP client for a bank, you must have a minimum deposit of 500 thousand euro. For some banks, you need EUR 1 million to become a VIP customer.
Private banking in Europe
The private banking service is not geographically limited in any way. The banking products under this service can vary greatly. Thus, banking privacy is always adapted to the individual needs of customers in a given country. A wealthy Swiss or German has completely different property resources than a Czech or a Spaniard.
The private banking service in Europe has a number of features that distinguish it from other continents. The first is that 80% of the clients of these services are businessmen – this result is much higher than in other countries, which is why the European offer of the service is addressed to such people.
Which banks offer this service?
Financial experts from Forbes magazine awarded 5/5 stars to the private banking service in the following banks: Santander Bank, Citi, Goldman Sachs Europe. Slightly lower, because 4/5 stars were awarded to the following banks: LGT Bank, Goldman Lampe Bank, Credit Suisse, UBS.
