Wealthy individuals usually have private bankers that offer services regular banks don’t offer to their customers. However, with changes in the financial industry and technology making most things accessible to everyone, a vast majority of us can get access to services that are offered by private bankers.
What Services Do Private Bankers Offer?
The services offered by private bankers usually fall under four major categories, namely, banking services, advisory services, investment services, and perqs. These services are offered at a premium price to their millionaire customers.
Banking Services
All private bankers offer standard banking services. They process your payments, receive deposits, and offer loans, among other things. You’ll find that these banking services are offered by all banks to all customers.
The only difference is that banks, in the past, would require customers to visit the branch to make use of any of these services. However, with the technological advancements made in the banking sector, you can handle a vast majority of these affairs online, from the comfort of your home.
Advisory Services
Private bankers are well connected to investment managers, tax accountants, estate planners, etc. So, in addition to taking care of their customers’ banking requirements, private bankers would also put them in touch with important finance professionals.
Now, if you don’t have millions in your account and aren’t extremely busy, it’s unlikely you’ll need a private banker to do all the leg work for you. In fact, with some research, you should be able to find a reputed accountant, tax consultant, or financial advisor.
Investment Services
Private bankers also help their customers make investments. Most private banks have an investment arm and the customer is charged a fraction of their assets under management for the investment services offered to them. The charge, of course, reduces if the customer has more to invest. Today, this is a service that most banks and brokers will offer to you.
They are also likely to offer these services to you at a fraction of the cost charged by a private bank. You can also choose to build your investment portfolio on your own if you know enough about the stock market.
Perqs
Private bankers also offer concierge services to their customers. So, a private banker can get you invites to exclusive events, tickets that are hard to buy, and make your travel arrangements for you. However, with disposable income increasing, concierge services have become extremely popular. While your lender is unlikely to offer concierge services to you if you only have a checking or savings account, a number of credit card companies offer these services along with upscale credit cards.
Are Private Bankers Necessary?
Some financial transactions are so complex that it can actually pay to have a private banker take care of them. For example, if you are cashing out on a multi-million dollar business, it is likely that you’ll need to be in touch with a range of financial experts. In such a situation, a private banker would be your best bet to get in touch with top finance professionals.