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Sunday, 21 February 2016

Crucial Info About Private Banking

By Larry Foster


This is the type of banking that is offered more on the personal basis to the clients. They include banking, investment and other types of financial services. These services are provided to the high net worth people in the society. Private banking is an exclusive form of wealth management and it is available to high income earners or the wealthy.

Presently, a lot of monetary institutions have this as one of their services. They are no longer scared of offering their services to the less high net worth person persons of the society. Members of a certain household are now getting offers for them to join this bracket and also as a way to entice them, their credit cards are being pre-approved.

Is there any significance of this form of banking? Formerly, it was all about the members enjoying many forms of privileges for example they had a financial advisor at their beck and call to advise them on matters of investments, pensions and what a few. They also got a personal bank officer for professional guidance. Nowadays, most banks offer the same so its no longer a luxury.

During stormy market periods, private bankers are the people to bank with. They will see their clients through the difficult period no matter how long it may take. They will give you attractive lines of credit with good interest rates. Their turnaround happens to be really fast than any other type of bank which is pretty much advantageous.

Whenever you have trouble with your account, you can always contact the relationship manager for assistance. They will gladly help you solve any problems and if at that moment they are not able to, they will direct you to a team of experts and within no time, you will be assisted. The technical support team will always be at your beck and call.

What are the risks of these service especially those offered online? The banks that give this type of service usually have a type of security system in place. The clients financial data is always protected by their personal username ID and also password that is known only known to them. Sharing of this information is always discouraged to reduce the risk of being hacked.

Private bankers normally obtain their fees by charging the assets they are managing by 1 to 1.5 %. No wonder they are paid well. The issue is that it is really hard to validate the charges once you match it up with the investment performance of the bankers. There are new fish in the market that charge much less than that and they do a great job on your portfolio.

Is there any reason at all to make your account private? Before switching you have to look at the pros and cons first. One of the pros is that they are about the only lenders that still offer mortgages of about 1 million dollars. The con is that they over charge their services which may not be worth it since you can get the same service at a cheaper price.




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