Private Banking refers to banking institutions that provide banking, investment and financial services to individuals who enjoy high levels of income or have significant assets to invest and manage.

Wealth Management refers to a bouquet of services that helps individuals to plan, manage and make use of opportunities to grow their wealth / assets. These services are esentially geared towards three goals – protecting, managing and growing wealth. An example of such a service provider is Citibank International Personal Bank Singapore.

Although technically speaking, Private Banking and Wealth Management may refer to different topics, in common parlance, they are treated interchangeably and refer to a range of services catering exclusively to the needs and requirements of High Networth customers. Here we will take a broad look at the services offered under the Private Banking / Wealth Management umbrella:

Evaluation services

Alternatively known as investor profiling this includes understanding your risk tolerance, i.e., your capacity for undertaking financial risk. Your risk tolerance could depend upon a multitude of factors like responsibilities, objectives, your personality, your age and lifestage.

Evaluation also includes understanding your financial needs and expectations in detail including in- and out-cash flows, investment objectives, investment horizon and liquidity requirements. An understanding of these factors is critical to devising appropriate financial strategies.

And, as your profile changes with time and lifestage it is important to carry out the evaluation process at suitable intervals.

Products offerings

A Private Bank is distinguished by its wide range of products. Products could include equities, bonds, commodities, mutual funds, insurance, derivatives, a range of savings/current accounts, multi-currency accounts, private equity, real estate funds, structured funds, products and portfolios, art investments etc. A hallmark of a Private Bank’s product portfolio is its international scope.

But a Private Bank doesn’t stop with just providing you with a wide range of standard, structured and even exotic products; an investment plan is drawn in accordance with an asset allocation strategy that is based on your risk profile and your particular situation.

And, finally product services also include a superior transactional platform, whether you are a “do-it-yourself” investor or are availing of managed investment services.

Research and Advisory services

Devising a product mix relevant to your needs, especially given the multitude of products in each asset class, requires a deep understanding of the various products available including the skill to compare competing products, and deep research. Once your portfolio has been created it is important to keep balancing it with respect to the allocated asset mix in keeping with changing market dynamics.

The research teams’ of Private Banks deliver the required high-quality research which is then delivered to you through advisories as actionable reports / recommendations. Advisory services could also extend to real estate, tax, succession planning and other areas as per the client’s needs.

Lending services

Your Private Banking Wealth Manager can connect you to the lines of financing best able to support your goals given your financial circumstances. Customized lending products range from securities backed finance, high-end residential mortgage, specialised asset finance, margin trading facilities, home equity lines, individualised credit lines and loans, credit and overdraft facilities for foreign exchange, derivatives and commodities and standby letters of credit to highly structured complex credit facilities.

Such tailored lending facilities are available to individuals, personal investment companies, family trusts and estates. Private banking debt products also come to you at rates discounted to the standard market rate.

Legacy services

Estate planning refers to the process of arranging and planning your succession and financial affairs and includes the management of your estate during and beyond your lifetime. A Private Bank can provide a range of services to help ensure smooth succession planning. These could include –

Advisory – Advise on the structuring of an estate plan in line with the client’s expectations.

Drafting and Execution – Including drafting of wills, trust deeds and other ancillary/related documents.

Trusteeship – Acting as a Trustee for administration and distribution of the estate.

Executorship – Acting as an Executor for administration of the estate on the death of the settlor.

Safe Custody – Providing safe custody for all the movable assets like jewellery, paintings, title documents of various properties etc.

Estate planning can get complex especially when assets are sited in international locations as this would mean dealing with different national regulations. A Private Bank’s services can help you unravel this maze while ensuring smooth succession of your assets/properties.

In addition to the above broad categories, some private banking and wealth management firms may also provide other services including:

Family Office or Family Enterprise services that provide a very hands-on, “office”-like approach to managing your family’s wealth and investments. These services seek to help family business owners manage governance and sustain family enterprises across generations given changing socio-political-economic conditions.

Corporate services – Private banking customers can also extend their banking relationship to include their corporate selfs. And, private banks can help them with a platter of services and products that include providing research, advisory and implementation support for mergers and acquisitions, divestitures, joint ventures, financial restructurings, equity and debt capital raisings, identifying and utilizing emerging market opportunities, leveraged buyouts, infrastructure financing, project finance, management buyouts and buyins etc across borders.