The financial sector is extremely complicated and incredibly deep. Understanding how to work with your money is part and parcel of creating more of it. In order to properly approach your financial decision making in the future, it is important to know the key differences between Private Banking institutions and Wealth Management institutions. Both of these services can provide a wealth of benefits to individual applicants, so let’s explore both concepts further to understand them better.
1) What Is Private Banking?
Private banking is the more common concept to be discussed, today. Private banking generally refers to financial institutions that offer management services to High Net Worth Individuals (HNWIs). This is in comparison to a public financial institution.
Private banking services typically require an individual to possess more than $100k in assets as the six-figure mark is the typical threshold for working with a private bank. As an exclusive service, private banking can provide a host of benefits to the High Net Worth Individual.
Advantages of Private Banking: When you work with a private banking institution, you can receive advice pertaining to your investments as well as your overall financial health and wellness. Private banking services can even offer to both maintain and protect your assets. Here’s an example of a private bank directory for you to reference. Working with a private bank also means that you do not have to wait in line or rely on a teller.
Key Takeaway: Private banks are ideal for High Net Worth Individuals who want to receive personal care and attention from a team of financial professionals.
2) What Is Wealth Management?
Wealth management services are typically beholden to individuals of more affluent economic stature. These firms specialize in offering both advice and actionable investments on behalf of their clients, typically in the fields of stocks and funds. Wealth management professionals also perform financial services in the world of financing.
Advantages of Wealth Management: Receive one-on-one care in a sit-down atmosphere to discuss your financial goals. Receive personalized assistance concerning your investments and assets.
Key Takeaway: Wealth management services are not quite the same as Private Banking services as the level of care is slightly less personal. With that being said, wealth management is ideal for individuals of high net worth who are looking to invest in stocks and funds.
When it comes time to make a decision regarding financial services, there are many different items to juggle and conceptualize. Private banking and wealth management services both offer their own specific benefits. While private banking is ideal for general banking services for HNWI’s, wealth management services are more ideal for individuals looking to invest and improve their cash flow.
Wealth management and Private banking services both offer the kind of customized financial support that many individuals need. Ultimately, selecting a financial service will come down to personal preference. The facts outlined above should work as a guide as you push toward making the decision that works best for your financial situation.