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Private banking – What services do you offer?

Private banking - What services do you offer?

Private banking differs from the banks that we usually use in our day-to-day business because it has clients with above-average assets and who have a special interest in investments. For this reason, it offers them specific services and according to their capital. Discover on this page what private banking consists of and what differentiating services it can offer.

private banking

ALL YOU NEED TO KNOW:

  • How is private banking different from commercial banking?
  • What premium services does the customer offer this banking?
  • Where can we find personal banking?
  • How much money do we need to access it?
  • How much does it cost to be a customer of private banking?
  • Questions and doubts of the financial forum
  • Latest blog posts

How is private banking different from commercial banking?

How is private banking different from commercial banking?

We understand by private banking (in some banks called personal banking) the most personalized service offered by some entities to their VIP clients, that is, those with a heritage that is well above the average. In private banking, they are advised on how to optimize their capital.

As we have already mentioned, not all clients have access to the private banking service, since a minimum equity is necessary and to meet certain requirements, which will vary according to the bank. In addition, the products and services offered by private banks are different from those of the traditional one.

What premium services does the customer offer this banking?

What premium services does the customer offer this banking?

Being a different part of the commercial, private banking offers its clients specific services. In each entity they are usually different, but in general there are some that are repeated in all banks:

  • The client will have a personal manager and a team specialized in investment. In this way, you can analyze the client’s special circumstances and have control over your assets, your preferences, your financial needs and, above all, your risk profile. Thus, an investment proposal can be designed and the pertinent periodic monitoring carried out.
  • In addition to a customized advisory service, the entities that have private banking offer discretional portfolio management services, sicavs and various customized products .
  • Being a client of private banking also usually provides a notoriously preferential treatment that translates into different advantages such as absence of commissions on some products, special cards, better conditions in the contracting of any banking product, invitations to exclusive events …

Where can we find personal banking?

Where can we find personal banking?

Almost all banks have a private banking service, unless they are small banks that have just been born or are highly specialized in a single sector. In fact, it is possible to find banks that are exclusively dedicated to managing large assets , that is, they do not have clients with medium capital. This differentiation is usually made between “traditional” client and private banking client because the products to access are not the same.

In private banking, there are usually personal managers who are responsible for guiding the client in terms of investments.

If you want to know which banks have the best services, on this page you will find the ranking of private banks in Spain .

How much money do we need to access it?

How much money do we need to access it?

The minimum investment to access a Private Banking service depends on each entity, although the minimum required is rarely less than 100,000 euros of financial liquid assets. In fact, in larger banks, the minimum is usually higher. Let’s see the most important private banks in Spain in the following table:

FIRST NAME HERITAGE 2018 (Millions €) NUMBER OF CLIENTS MINIMUM HERITAGE
Santander Private Banking in Spain 90,000 500,000
CaixaBank Private Banking 61,091 57,469 500,000
BBVA Private Banking and Wealth 59,673 49,856 500,000
Bankinter Private Banking 31,200 31.123 1,000,000
Sabadell Urquijo Private Banking 25,837 28,694 500,000
UBS 16,000 1,000,000
Banca March 12.102 300,000
Deutsche Bank 12,172 500,000
Andbank Spain 7.640 50,000 300,000

How much does it cost to be a customer of private banking?

How much does it cost to be a customer of private banking?

All the advice obtained in private banking is not free. In general, we can differentiate three main collection models:

  • The bank takes an annual percentage of the patrimony that the client has. For example, one of Santander’s investment models takes between 0.4% and 0.8%, depending on the risk profile of the portfolio.
  • The bank charges what is called the ” success rate “, that is, it only takes part of the profits obtained from the investments (BBVA, for example, takes 10%). These rates can be negotiable and reduced if the benefits are high or the equity is very high.

  • The service is free and the bank only takes a portion of the investment management fees. However, this model is disappearing, as banks, in order to improve their profitability, have increased the commissions received, above all, from private banking clients, so that this does not affect private clients as much.