AllAboutFinanceCareers Finance jobs, courses & advice. All good. All in one place.

Private Banking

Private banking is a collection of products and services designed to cater for a bank’s wealthiest customers. This division is likely to deal with high profile individuals and companies who need extra support to manage their money due to the amount they have. We’re talking successful business people, footballers, celebrities…

Private banking: exclusive services for exclusive people…

A bank’s private banking department offers much more tailored services and advice all round to meet these high net worth individuals’ (HNWI) needs. For example, there are usually more insurance products, pension scheme options, advice and support relating to complex tax requirements that come with having lots of money, and advice relating to setting up beneficiary funds.

Team structure…

A private banking team will usually consist of relationship managers, financial advisers, wealth managers and back office operations. Clients are assigned a relationship manager who fronts the wealth management team and will act as their personal contact at their beck and call for all matters relating to their private account. These relationship managers are experts in building rapport and close working relationships with their clients and providing financial advice.

It’s the relationship manager’s job to get to know their client and their financial needs inside out in order to provide the best service for them. They will meet face-to-face with their clients when they can or at the clients’ request to discuss suitable financial plans and provide regular updates on their plan’s progress. This role is likely to involve networking activities too to help build bonds with clients. They must keep the client complete happy with the services they receive.

Specialist financial advisers take care of some of the more intricate details of financial planning and support the relationship manager in the work they do with the client. They help to develop financial plans according to the information collected by the relationship manager. Some specialist financial advisers focus on investment plans for clients, conducting research and risk management duties to provide bespoke plans for what they want to achieve.

In terms of investments, banks will offer a portfolio management service as part of their private banking division to provide discretionary portfolio management: a service which makes investment decisions and moves on the clients’ behalf and allows them to get on with running their businesses, estates or countries, kicking balls for a living or singing their little hearts out; whatever they do on a day-to-day basis.