Key Benefits of Private Banking

Is it possible to find a banker who anticipates your needs, collaborates with your other advisors, offers fully integrated financial services beyond traditional banking and lending—and perhaps even makes the occasional house call?

While it may sound like a tall order, an increasing number of individuals and businesses today are moving toward the more personalized, proactive service model private banking embodies. Here are some of the benefits you can expect if you choose a private bank for your financial needs.

More personalized service

Most clients today enjoy the convenience of electronic banking and online account access for their day-to-day transactions. But many also want a more personal connection with a bank that knows their unique situation and values their business.

When they have a question or issue, they tend to prefer high-touch attention delivered right away rather than having to call a toll-free number. This type of responsive, accessible, individualized service is a hallmark of private banking.

A dedicated private banker

Private banks are in a unique position to work one on one with people who want a solid financial plan and a relationship with a banker who truly listens and understands their individual, family and business needs. To access these personalized services, clients must meet private bank requirements and private banking criteria.

Every private banking client is assigned a dedicated relationship manager who provides personalized service and support on a daily basis. The relationship manager is also part of a larger team of banking, lending, wealth management and trust professionals who offer ongoing support and counsel.

A more integrated process

Those looking for an approach where all of their bank, investment, trust and retirement accounts work together to meet their unique goals can find this type of holistic, relationship-based focus within private banking. This comprehensive service model is a key benefit of working with a private bank. Like all banks, private banks also provide traditional checking and savings accounts insured by the Federal Deposit Insurance Corporation, or FDIC.

Relationship benefits

Most private banks also offer additional benefits to clients who maintain a certain level of assets in their accounts. This may include fee waivers on banking services, preferred interest rates on qualifying new loans and lines of credit, and bonus interest rates on select deposit and savings accounts.

Typical private bank clients

The current profile of a private banking client is far more complex than simply ultrawealthy clients or those who've inherited their wealth. Today's private banking clients are individuals and businesses in all stages of the wealth creation process who seek a banking relationship with an experienced banking and wealth management organization that can:

• Demonstrate expertise and breadth in a variety of financial management disciplines
• Provide exceptional personal service
• Anticipate their financial, trust and estate planning needs
• Provide ongoing recommendations to drive future growth of their assets or business

Is private banking right for you?

Here are a few factors to consider as you decide whether to work with a private bank.

Level of service

The first step is to determine what you're looking for in a banking relationship. Is it a one-on-one relationship with a trusted financial advisor who meets private banking criteria and can work with you, your family and your business for the long term?

Expertise in multiple disciplines

If you're among the 75 million baby boomers on the cusp of retirement, you'll likely want to build a relationship with a bank that understands retirement, tax, trust and estate planning, as well as business succession planning and personal lending. This level of expertise is one of the key benefits of private banking, ensuring that all aspects of your financial life are addressed.

If you're a business owner or professional with a desire to grow and manage your wealth within a diverse portfolio, you may want an advisor who understands not only your banking needs but also your short- and long-term investment goals. Working closely with an investment team, this advisor should also provide you with a customized investment plan based on an understanding of your specific goals and risk tolerance.

Business acumen

If you run a small business, it's a good idea to have a trusted banker who can advise you in the various financial aspects of operating a company—from cash management to wealth management. If you're looking to expand your business, you may also benefit from a banking relationship that provides counsel in commercial loans and financing.

How to choose a private banking partner

If you decide that a private bank is the right solution for you, the next step is choosing the right bank for your needs.

Ask existing clients of the private banks you're considering, or check with your attorney, financial planner or accountant for recommendations. Decide if the institutions you're researching have the stability and performance standards to help you reach your financial goals. Look at their mission statements to see if they match your investing philosophy.

After you've identified several banks, arrange personal interviews with the appropriate bank personnel. Make sure the people you interview are the ones who will actually be managing your account. At a private bank, you'll typically have one key contact and access to a team of financial experts who can assist you with specific transactions and services. You want to feel comfortable that this team will effectively work on your behalf and confident that you can fully trust their advice. The essence of a private bank is reflected in the quality and longevity of the relationships it forges over time.

The bottom line

With any private bank you choose, communication is key. Private banking isn't just about financial transactions—it's about building meaningful connections. From the outset, you should have a clear understanding of what you want and what you can expect from your private bank.

You'll also likely need to spend time discussing your financial goals and preferences, which your advisor will need in order to tailor a financial plan that best suits your situation. A solid private bank will want your input because it'll help them design a customized financial plan that helps you meet your financial goals.