Private banks are banks reserved for the wealthiest individuals in the world. Conventional banks deal with what most people think of when they think of banks - loans, checkings/savings accounts, safety deposit boxes, etc. Private banks provide these services, but they also provide much more.
For individuals with a significant amount of wealth (and we're talking about $10M minimum for most of the big private banks. I believe that upwards of $50M net worth is a typical average, indicating that relatively stratospheric wealth is what we're dealing with here), they want much more than just an account. They want personalized service, and advice on exactly how to handle their money. Private banks offer personalized asset allocation, personalized investment advice, etc.
In addition to the nuts and bolts of financial management, private banks also deal with various issues that come with significant amounts of money. Some examples are philanthropy, legal issues, and succession (wealthy clients want to know how to get their wealth to their descendents with minimal taxes).
Private banking is all about relationships. Banks assign one banker, or a team of bankers, to clients who will work to develop a long term relationship. This contrasts with a commercial bank, where work is very transaction oriented (i.e. a customer comes in to do something, you help, and then the customer leaves).
Merits?
- If you like working with people and developing relatinoships with them, this could be a good place.
- Good pay (not compared with hedge funds or private equity, but good by most standards).
- It's possible to make good connections, since you're dealing with wealthy and powerful individuals.
- Relatively good work hours for a finance job.
Drawbacks...
- Wealthy people are notoriously demanding. Of course this is a generalization, but it's something to consider.
- This isn't exactly the same as helping AIDS infected orphans in Africa obtain water. If you're looking for personal fulfillment, this will be much more of a stretch.
- Competition for jobs in the most exclusive private banks is fierce, as it is in most finance positions.
The future looks bright for private banks, as wealth in the US and abroad is quickly increasing (India and China's wealthiest are only getting wealthier). There is a record number of millionaire households in the US, and more people are clamoring for the attention, prestige, and benefits of association with a private bank.
2007-02-15 14:10:27
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answer #1
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answered by AB 2
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Private banking is a banking procedure which allows its all customer for their daily needs of banking in bank which is govern by a private organization or some men who are not related to the government of any country. A Bank which is regulated by government is called government bank. Private do about all the works which are done by government bank.
see more https://bankingdiplomasolution.blogspot.com/
2016-05-26 23:16:55
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answer #2
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answered by mahmud 1
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what is mertis?
Private banking is the banks offering special services to their richest clients. More products, better rates, higher levels of service. Ultimately, the bank is just trying to find ways to make more money off the client, and pampering them is an easy way to get them to pay you more. Just like a ritzy hotel compared to a motel 6. You both get a room, but a lot of the price difference is based on the extras.
2007-02-15 06:33:53
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answer #3
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answered by Yanswersmonitorsarenazis 5
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Nationalised Banks are in part owned and managed through the authorities.to boot as RBI. deepest Banks are owned through organization communities to boot as investors and also they are managed to a constrained volume through RBI. each and every Depositor is certain of go back of Rs a million lac deposited in a monetary company lower than the Deposit insurance and credit Giramtee scheme, at the same time as the funding in a nationalied monetary company is fairly useful in the interest of conserving the important, (besides the undeniable fact that the returns would no longer be very severe), area of the investible surplus would properly be deposited in a private monetary company also depending upon the promoters. HDFC monetary company is promoted through HDFC, a very solid monetary company. Nabard bonds RBI bonds Public Provident Fund supply the great aspect about tax advantages.
2016-12-04 05:24:50
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answer #4
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answered by ? 4
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1
2017-03-06 07:28:33
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answer #5
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answered by Ontiveros 3
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I used to work in one a few years ago. There are many extras that go with it because it is for the wealthy clients only (usually starting with a few million to invest). A lot of hand holding for them & their investments. they get regular consultations, free tickets to events, many extra services for free like deposit boxes, wire transfers (which trust me, they send & get many wires), business relations b/c many of them have businesses. Portfolio & asset management and many specialized stuff just for them.
The future is bright for them so long as there is wealth & trust funds out there.
2007-02-15 06:43:47
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answer #6
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answered by ricks 5
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The luxury of the rich. A bit overrated in my opinion. The fees are high and the service a bit snooty. It is set up more to stroke egos than anything else.
2007-02-22 13:12:10
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answer #7
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answered by ttm 1
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