Definition: What is a Private Bank?
Private banking is a specialized type of banking service designed to serve the needs of people who have a large net worth, who run businesses, or who otherwise have banking needs that greatly exceed that of the average individual.
A private bank offers these types of services to its clients.
Typically, this is a branch of a large bank.
Smaller banks are less likely to offer these types of services, because most people who fall into the high net worth category are more likely to need the services a major bank can offer.
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Additional Details and Definition of Private Banking
A private bank is often characterized by hands on service.
Unlike a regular customer banking experience where you deal with whoever is at the teller box, these banks try to offer personalized service where an account manager will work with specific clients in order to build a relationship with them and to better understand their unique financial needs.
A private bank also offers services that regular banks don’t need to typically worry about with their customers.
For instance, they may provide guidance on acquiring large cost assets.
These private banking services aren’t offered to other types of customers because they simply can’t afford the entry price point into some of these types of investments.
They also help with things like planning for retirement or for wealth succession planning.
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