If you have visited your bank’s website in recent years, you may have noticed the existence of a specific tab dedicated to private banking or Private banking. Indeed, many general banks have now set up a subsidiary dedicated to their high-end customers. Formerly reserved for people with very substantial financial assets, this range of services has recently opened up more widely to a certain upper middle class belonging to the CSP +.
But what is the point of using this type of service? And what is the difference with a traditional bank?
The advantages of Private Banking
Being a client of a private bank has many advantages which allow these specific offers to stand out from so-called “retail” banks, ie open to all clients regardless of income. The main advantage of having recourse to Private banking is to maintain a privileged relationship with your banker.
This indeed manages a smaller clientele and therefore has more time to devote to you. This gives you truly personalized services and an offer that is perfectly suited to you. Owing to significant experience in financial management, belonging to a bank of this type also allows you to have access to more efficient financial products which remain not very accessible to the general public, such as specialized funds or structured products. .
Private Banking is indeed distinguished by its wealth expertise and allows you to benefit from the best investment advice.
Which establishments today?
Today, several groups share the private banking market. These can fall into two categories. On the one hand, the subsidiaries of large retail banks whose entry ticket remains relatively accessible and which are intended mainly for a so-called mass affluent clientele, with financial assets exceeding 100,000 euros, but not placing them still among the wealthiest clients (High net worth).
This clientele, if it belongs to the CSP +, does not always have an asset allowing them to integrate the second category of private establishments: those whose entry ticket starts at 500,000 or even more than one million euros. . More select but also more prestigious, these establishments are aimed at the wealthiest and offer exclusive wealth management services.
How to integrate such a bank?
To join a private bank and benefit from its many advantages, it is necessary to have a certain financial heritage, the amount of which can vary from simple to fivefold. According to a study carried out by the newspaper L’Opinion, the threshold can range from 150,000 euros for certain subsidiaries of retail banks to more than 2 million euros. But beyond the sole question of the minimum wealth to own, you must determine whether you really need to use Private Banking to manage your assets.
In many cases, the services offered by a general bank will be sufficient and you will then be unnecessary to pay fees for services that are not essential to you.