Private banking and wealth management are two services that are offered to clients with high net worth or assets they want to grow. But what’s the difference between the two? This article will break down both services.
What is Private Banking?
Private banking includes all of the typical features that you would expect from banking - deposits, lending, etc. - but with an extra level of attention and service for high net worth individuals. This is all carried out through a financial institution. The criteria for eligibility is up to each institution, but typically this service is reserved for those with at least six figures in assets.
Private banking usually includes the following services:
● A dedicated banker for personalized service
● No waiting in line
● Access to exclusive rates
● Some financial advice
● Delegate routine transactions to a banker
Private bankers may offer financial advice and guidance, but their primary goal is to provide superior banking services to these high net worth clients.
What is Wealth Management?
Wealth management by contrast is more focused on managing and growing wealth strategically, vs. the handling of assets and money.
Wealth management is a financial advisory service that creates a strategy for managing, increasing, and distributing wealth. The person who aids in this service is called a wealth advisor.
Wealth management includes all of the following services, in one:
- Benefit Planning
- Educational Planning
- Estate Planning and Wealth Transfer Services
- Insurance and Risk Management Services
- Long-term and Elder Care Services
- Financial Organizational Services
- Retirement Planning Services and Tax Planning Services
- Services for Business Owners or Executives
Wealth management is more than just advising you on new opportunities – it’s a holistic strategy that looks at your overall wealth to determine best paths forward.
Additionally, wealth management is typically offered to clients with a net worth of $250,000 or more, which is a lower eligibility point than private banking.
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Private Banking vs Wealth Management
Now that you know the difference between the two, which one should you choose: private banking or wealth management? The truth is that both services often go hand in hand. For high net worth individuals, both offer different but complementary benefits.
Private banking provides an extra level of care and attention to your assets, while wealth management helps you increase those assets.
For many people, however, they don’t have the 6 figure value yet for private banking - but they are ready for wealth management.
Wealth Management with Greater Midwest Financial Group
With almost 70 years of experience combined, our wealth advisors understand what it takes to make the most of the money you make.
Your personal wealth advisor has the experience to help maximize your assets and build your wealth in a stable and diversified way. We’ll work closely with you to understand your risk tolerance and income needs. Then we’ll capitalize on your resources to help meet your savings goals and enjoy a safe, secure future.
⇾ Read Now: What Can Wealth Management Do for Me?
We’re proud to be Five Star Wealth Managers
In conjunction with Mpls. St.Paul Magazine and Twin Cities Business, Five Star Professional has recognized an outstanding group of Twin Cities-area wealth managers. Five Star Wealth Managers are named using an in-depth research methodology that includes ten objective criteria.
Greater Midwest Financial Group is a financial advisory firm serving St. Paul, Minneapolis, and the wider Twin Cities area. We specialize in wealth management, retirement planning, asset management, and other personal finance needs.