Difference between private banking and wealth management
Deciding where to bank and how to invest is one of the most important considerations for would be investors; banking has evolved over the years from a reserve of the elite in society to a common tool used by everyone in the society.
Many people are earning lots of money in the world and becoming wealthy. Many of them however, do not know the benefits of banking especially private banking to increasing their wealth.
Private banking: is a type of personalized banking service offered by many high street banks and private banks. Private banking enables the individual to communicate with the accounts manager on a personal level.
The account holder will be able to get access to their funds at a personalized level quick and easy without having to deal with the other staff of the bank.
The funds in a private account are also better protected thus will reap more from the banks services in terms of interest rates.
Wealth management is a financial management service provided by professionals. These services are usually delivered to high-end individuals with a big checkbook.
Wealth management will focus on long-term investments for an individual as opposed to short-term. There are some firms that cater to the needs of middle level family wealth management as opposed to high-end clients.
Wealth management firms will cater to your individual financial needs according to your requirements. Many people tend to assume that they can perform their own financial management; they forget the tax reprieves wealth management institutions offer them.
The main difference between private banking and wealth management is that financial banking is banking service that does not necessarily deal with investments for clients.
A client may open an account just to deposit money in while in wealth management the user opens an account to improve on their financial well being in the end.
The wealth management institutions offer some kind of high return savings for clients.
Wealth management can be offered by many institutions including mutual funds and other types of funds.
Private banking can only be offered by a financial institution such as a commercial or a private bank.
The private bank can also service the management of wealthy for their clients. This saves them a lot of time and gives them a peace of mind.
It is basically evident that private banking can be extended to cover wealth management but wealth management firms cannot provide private banking facilities to clients; if they need the service, they need to go to a bank of their choice or visit any other financial institution.