When is it Time to Consider Private Banking

December 13, 2022

Retail banks work well for most people, so those with typical financial situations can usually find the services they need at their local bank or national chain. Private banks offer advantages for high-net-worth individuals with complex wealth situations who need custom banking solutions and a higher level of customer service.

What Is Private Banking?

Private banking gives the client a team of experts who will manage their financial situation within the bank. Clients of private banks do not need to wait for a teller or make frequent branch visits. Instead, they can call their private banker for transaction assistance or answers to their questions. The personal banker knows the intricacies of the client’s finances and coordinates with their in-house team of experts to make well-informed recommendations.

Sometimes referred to as “relationship management,” private banking allows clients to pay bills, manage wealth, and access unique financial products. Private banks provide concierge services, making life easier and more profitable for their clients. High-net-worth individuals typically realize the need for a level of responsiveness and strategic advisement that retail banking cannot provide, signaling the time to consider a private bank.

Private Banking Services

A private bank offers tailored solutions for clients, rejecting the one-size-fits-all approach. These services include:

• Financial Planning: For interested clients, private bankers advise them on financial decisions, such as buying a house, planning for retirement, and creating college funds.
• Wealth Management: Private bankers serve as financial planners, advising clients on investing, asset allocation, and risk management.
• Lending: A private bank can offer loans to clients for significant purchases, such as real estate, luxury travel, classic cars, superyachts, and high-end collectibles.
• Tax Planning: These financial professionals are also experts in tax law and can advise clients on reducing their tax burden.
• Estate Planning: Private banking experts can also help with the earlier stages of estate planning.

A private bank may offer more services, such as risk management, but these five are the most common. Individuals considering a private bank should research various institutions to find the right fit for their needs.

Who Benefits From a Private Bank?

The personalized service of a private bank is especially effective for those with complicated wealth situations. Private banking benefits individuals such as:

High Earners Early in Their Careers

Some people earn high salaries early in their careers, so they need a higher level of financial advice as soon as possible. They will avoid money pitfalls if they receive personalized tax guidance, long-term investing, and goal advice.

Business Owners

Business finances are notoriously complex, especially for those who have invested their wealth in the company. Owners may deal with income from distributions instead of salary and must consider employee benefit programs and retirement planning.

Those With Multi-Generational Wealth

Maintaining the family fortune is often complicated, particularly when it involves multiple generations. Private banks can advise these clients on management strategies while educating younger family members about maintaining the family legacy.

Individuals With Sudden Wealth

Many people dream of sudden wealth, but they may find it overwhelming when it comes. Clients who have won the lottery or received a surprise inheritance may have little experience managing large amounts of money. A private bank can advise them on financial fundamentals and help them preserve and expand their wealth.

Those Needing a Sudden Change

Major life events such as a divorce or death in the family often disrupt finances. People who need to make a sudden change in their financial management will benefit from private banking services. The personal banker or banking team can quickly analyze a client’s needs and advise them on how to direct their funds. Plus, the client can depend on their banker’s discretion.

The First Western Trust Advantage

First Western Trust believes its clients deserve a customized, holistic approach to financial security. Their expert team offers integrated wealth management solutions tailored to an individual’s needs.

They also provide structure and customized account and payment strategies that integrate seamlessly into a client’s financial plan. Clients with complex wealth situations will benefit from the individualized service that First Western Trust offers.

Our services include:

• Lending Services
• Depository Services
• Mortgage Services
• Personal Banking Services
• Risk Management and Insurance Services

Wealth is an advantage that comes with complications. At First Western Trust, private bankers understand the complexities and responsibilities, offering superior service and a customized approach to a client’s financial situation.

Closing Thoughts

Some clients need a higher level of banking service, including those with complicated wealth situations, business owners, younger high-earners, and those with sudden wealth. A private bank offers solutions for these individuals who may not get what they need from a regular bank.

Contact First Western Trust today and take your first step toward private banking with a dedicated banker and team of financial experts.