PRIVATE BANKING: EASY BANKING FOR HIGH NET WORTH INDIVIDUALS

Private banking is personalised financial and banking services offered to a bank's high net worth individuals (HNIs). In India, it is offered by foreign banks and a few private sector banks. Banks like Citibank , Standard Chartered , HSBC , HDFC , ICICI and the likes offer such services.

The main advantage of private banking is that a dedicated relationship manager is assigned to the customer who takes care of all his/her banking and financial needs. Be it a simple thing like wanting cash delivered at your doorstep, or complex financial planning for your kids, or your retirement, drafting a will, investing short-term surplus money, or buying a complex structured product - all of it is taken care of by the private banker.

Private banking is offered to high net worth customers. Depending on the perception of your financial wealth, the bank would offer you these services.

Different banks have different norms for customers eligible for such services. Some banks offer private banking to clients with 30 lakh investible surplus, while some others give them to those with 1 crore and above.

Your wealth would include things like fixed deposits, your investments in mutual funds, the balance in your savings account and so on.

The private banker helps you in all your banking and wealth management needs. To start with, the banker has to understanding the customer. So a private banker has initial meetings with the client to understand his/her risk profile, cash flows, needs and wants.

Based on the details obtained from such meetings, he develops an asset-allocation ratio for the client.

Using this model, he allocates the client's wealth into various assets that he feels opportune, such as equities, debt or real estate.

Within each category, he offers various products. Once a portfolio is restructured and built, it is monitored on a monthly or quarterly basis. The private banker comes up with appropriate strategies to enhance returns from the portfolio.

A private banker's role is to anticipate and understand client needs and to help achieve his immediate and long-term wealth goals. So whether you run a business, or are employed or a professional, a private banker should be able to help you.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/private-banking-easy-banking-for-high-net-worth-individuals/articleshow/8686736.cms