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Private banking is an elite service that generally features concierge-like attention to your finances, plus other perks and customized financial services. In most cases, however, only high-net-worth customers can access private banking.
Here’s what you need to know about private banking to decide whether it can help you reach your money goals.
What Is Private Banking?
Private banking, also known as “relationship management,” pairs banking clients with individuals or teams that handle all of their financial tasks within the bank.
The clients can skip the teller and call their private banker directly to get help or complete transactions. The private banker is already familiar with the client’s specific financial situation and is in an ideal position to make suggestions and recommendations.
While the concierge nature of private banking is one of its selling points, that’s not all a private banker offers. In addition to being the point of contact for private clients, a private banker can also pay bills, provide wealth management services and arrange for unique products outside the bank’s standard offerings.
In short, private banking offers clients a single coordinator for nearly all their banking and financial needs.
What Is a Private Banker?
Private bankers are financial professionals who provide concierge banking services. They are experts on the benefits a private bank can offer. They also know how to navigate channels and advocate for clients when necessary.
Most financial institutions hire only certified private bankers licensed by the Financial Industry Regulatory Authority (FINRA) or the North American Securities Administrators Association (NASAA).
Like a resort concierge, a private banker helps you maximize your banking experience with minimal stress. They provide guidance and suggestions based on the financial institution’s products and partnerships. They may also earn bonuses or commissions on financial products they recommend.
How Private Banking Works
Private banking takes a holistic approach to your finances. Whether you’re an executive, entrepreneur or owner of a family business, private banking considers the solutions that best fit your unique needs.
What Does a Private Banker Do?
A private banker helps craft a financial strategy and reduces friction when connecting you to additional banking resources. Private bankers should be well-versed in your financial situation and familiar with your short- and long-term financial goals.
Private bankers closely monitor the performance of your accounts and educate you on investment risk. During major life changes and tumultuous seasons in the market, private bankers explain your options and work with you to refine …….