The banking landscape is made up of:
Retail banking, which presents standard investments to the widest audience; The private bank, destined to clients with substantial financial assets. The latter promises high-end personalized management, which individuals and wealthy professionals cannot find with a traditional financial advisor. Having become more accessible, it is now opening up to the upper middle class in the form of online banking but also of a neobank, 100% mobile.
Private banking: what is it?
It is a banking establishment providing tailor-made financial services to clients with substantial net worth. More commonly called wealth management, these services offer personalized support in the valuation of financial assets and real estate investment. Their particularity being to adapt to the situation and the needs of each person. Moreover, all the major banks have their private hubs, such as private banking or LCL Private bank, etc.
A bank with active financial management
Private wealth advisers systematically suggest active management of investments, with the aim of generating a high return . To suffer a capital loss is certainly real, but the gains will necessarily be significant. The challenge for each investor is therefore to diversify their investments in order to obtain attractive remuneration. And it is up to the private banker to direct them towards a financial product whose risk level is compatible with their objectives and ambitions.
Financial entry conditions
Private banking establishments are very selective. However, entry conditions remain variable and the minimum amount of financial assets required to access them depends on the services desired. Choosing wealth management is the assurance of benefiting from a complete offer. The heritage advisor is available, since he manages few clients. The approach of the private banking service is less global and the advisor has a more extensive client portfolio, making it less present. But current households can open an account with a capital of 250,000 Euros.
Why choose a private bank?
With personalized banking solutions and high-performance financial products, private banking has what it takes. Certain specialized establishments, such as the Edmond de Rothschild Group, only welcome a millionaire clientele. However, it is no longer reserved only for very high income and accepts a wider clientele. Today, network banks set a lower access threshold to the image of BNP Paribas. You just need to have cash, which the banker will grow to get paid.
Neobank, online banking…: various services
The services of a private banking agency are developed around the management of financial assets and asset optimization. Thus, it is possible to take advantage of:
- Legal, tax and financial advice;
- A complete annual financial statement;
- Targeted studies to meet individual needs: inheritance, creation of a company, etc .;
- From an online bank;
- From a digital or neobank bank, offering a fluid financial experience.
In any case, the performance and the diversity of the funds depend on the client’s investment capacity. Regarding the 6 points mentioned above, ING is a Dutch online bank very well positioned on this lever. It offers a Savings Coach and a Coaching system.
Open an ING account
Advantages compared to conventional banks
The range of financial products is much wider. It is even possible to qualify for offers from companies outside the parent company. There are also multiple options for wealth diversification: investment in luxury real estate, art, wine, investments in unlisted securities, etc. As for wealth management, the client has at their disposal an experienced team composed of ” a wealth manager who manages his assets, wealth engineers and legal and tax experts who provide their knowledge on technical points.
Several meetings are planned throughout the year, depending on the type of assets and the signed mandate. Interviews can perfectly be organized at the client’s home or at his workplace, if he so wishes. In addition to being available, the private banker takes care of his family and entrepreneurial heritage, coordinates the various areas of expertise in order to meet the most complex requests of his client.