What is private banking and how do they differ from conventional baking system?

Question

What are the bright sides of private banking ?

Answer 1

Banks usually offer "Private Banking" to individuals with high net worths - usually around 1 million or more.

With this type of banking, each individual is supposed to get a banker to oversee much of their financial picture, in exchange for the high net worth client keeping their money at that bank. Of course, there are also money management fees and so forth.

Since I am a do it yourselfer (not that I have a million dollars), I would not see much advantage to this service. In fact, many of the banks charge fees way in excess of the value they actually bring to your portfolio, and with internet stock trading becoming extremely cheap, it's easier and cheaper to manager your own portfolio (my opinion).