Private banking: What is it, and who is it for?

Many banks and wealth management firms (including UBT!) offer private banking, a service that caters to busy professionals whose time is at a premium and whose high net worth makes their banking needs unique. But unless you’ve worked with a private banker, you may not be aware of just what that service can entail. Read on for what you need to know about private banking to decide whether it’s an amenity that has a place in your financial landscape.

What is private banking?

Private banking (also known as relationship banking) partners clients with relationship managers who handle all their banking and financial tasks, from the ordinary account transfer to the complex loan agreement. Instead of visiting a branch or placing calls to the bank’s switchboard, the client calls their private banker directly to ask for advice, get assistance, or make transactions. The private banker, who would already be familiar with the client’s specific financial situation, can easily make suggestions and work on their client’s behalf to help meet their financial goals. This personalized attention and concierge approach comes with additional perks, such as easy access to departmental experts, relationship advantages, and special events.

What does private banking offer?

Not all banks and wealth management firms offer the same private banking services, but optimally, you would find customized service made up of the following:

• Specific premium checking or savings accounts that reflect the preferential rates and higher limits associated with emerging wealth or high net worth
• Highly personalized service that extends beyond “normal” conventions or hours, with a team of experts dedicated to meeting your unique and diverse needs
• Wealth management, including investment and financial planning guidance on everything from asset allocation to risk management
• Fiduciary and trust services, including estate planning and tax specialists
• Mortgage loans for residential and vacation homes
• Commercial lending and treasury management services to accommodate business needs
• Lines of credit, perhaps with reduced rates or waived fees
• Credit card services
• Agricultural lending and equipment finance

The more diverse your bank offerings, the more robust your private banking experience will be. It’s essential that the institution you decide on incorporates wealth management services into their private banking offerings for a service that goes beyond the transactional. The goal is to simplify your life while enhancing your fiscal future.

Who is private banking for?

While the guidelines for private banking vary among institutions, this elite service is ideal for individuals with a net worth of $1,000,000 or greater. The one-stop shop philosophy makes sense for busy professionals earning $250,000 a year or more.

Private banking usually requires a minimum balance, which may include deposit accounts, investments, or both.

Why would I want a private banker?

Private banking can provide a simple and seamless solution to handling your banking and wealth management, providing one key point person who coordinates an entire team of experts to meet your financial needs. So if your financial situation would benefit from a single point of contact, personalized guidance, and customized financial solutions, you may want to consider private banking.

How do I learn more about UBT’s Private Banking department?

We’re glad you asked! We would love to have you as a customer. You can learn more about our Private Banking team and find contact information on our website — the team would be happy to go over their services with you, help you determine if you’re a good fit, and let you know of any special offers that you may be able to take advantage of.