Private Banking vs Wealth Management: What is the Difference? Private Banking vs Wealth Management: What is the Difference?
Private banking and wealth management are often used interchangeably to describe banking services that are personalized to a specific client's financial needs and goals, but there are important distinctions between each service.
While wealth management focuses on a personalized approach to financial planning along with investment management, and portfolio management, private banking services provide high-net-worth clients with a holistic and tailored approach to banking and financial services.
Below, we'll dive deeper into the differences between private banking and wealth management services, the pros and cons of each, and more.
Quicklinks:
- What is Private Banking?
- What are Wealth Management Services?
- Private Banking vs. Wealth Management
- How to Get Started with Elevate Banking at Leader Bank
- Elevate Banking Products
- Elevate Banking Services
What is Private Banking?
Private banking, also sometimes referred to as relationship banking or concierge banking, is a service offered by many financial institutions (including Leader Bank) to higher net-worth individuals or families that include personalized banking services with a consultative approach to meeting their financial goals due to the complexity of their financial situation. Generally, banks that offer private banking services want to be a one-stop shop for their clients' banking needs.
If you qualify for private banking services at a financial institution you'll likely be set up with a private banker, also known as a relationship banker, who will work with you one-on-one across the various products and services the bank offers. Your relationship banker will reach out to you periodically to check in on your financial goals and offer advice on any products and services the bank offers that can help you achieve these goals. While each financial institution's private banking services will differ, the common theme among them will be a more personalized banking experience and access to specialized banking products and services.
What are Wealth Management Services?
Unlike Private Banking, your bank may not offer private wealth management services (including Leader Bank, which does not offer wealth management services). A wealth management firm will work to provide ultra-high-net-worth clients with investment advice, financial management, asset management, and portfolio management services.
In exchange for a fee that is usually represented by a percentage of your total assets under management, a wealth management advisor assigned to you by your wealth management firm will work with you to understand your financial goals, determine how comfortable you are with risk, and then use that information to create an investment strategy that will help you work toward those goals. In doing so, your wealth manager will manage your investment portfolio and utilize various investment products that fall within the stipulations you set out for your advisor.
In addition to investment management services, wealth management firms also often offer financial planning services to help you plan for your long-term financial future and grow your wealth. For instance, wealth management may help a client determine whether retiring by a certain age is financially feasible and if so what financial and investment products they can use to make it happen. They can also help you set realistic spending habits and give you important advice on how to determine your living expenses -- two very important factors in helping you achieve your financial goals.
Private Banking vs. Wealth Management
While both private banking and wealth management are services targeted to high-net-worth individuals they differ notably in several ways. Ultimately, the biggest difference between wealth management and private banking is that private banking usually does not involve receiving investment management and investment advice. A wealth management professional will be directly involved in actually investing in assets on behalf of their clients in addition to providing financial advice. On the other hand, private banking involves a holistic approach to banking where a private banker will work with you to determine what retail banking solutions are best suited to help you achieve your financial goals. As a private banking client, you'll be able to use your bank as a one-stop shop for all of your banking and lending needs, and likely receive more competitive interest rates on certain accounts.
How to Get Started with Elevate Banking at Leader Bank
Founded with a vision of offering forward-thinking products and services to help our clients and advisors achieve their financial goals, Elevate Banking at Leader Bank provides a world-class premier relationship banking experience to help you achieve the next level of financial success and security. With a focus on long-lasting, prosperous client relationships built on trust and transparency, Elevate Banking offers you a personal advisor to assist with everything from account opening to expert financial guidance at every turn.
Whether helping a client across the country open an account using e-sign or assisting a local business with a remote scanner install in person, Elevate Banking can be tailored to each client’s needs.
Elevate Banking Products:
- Elevate Checking
- Elevate Money Market
- Certificates of Deposit
- Online and Mobile Banking with Enhanced Limits
- Complimentary Checks and Debit Card Services
- Remote Deposit Scanner
- Elevate Cash Reserve
Elevate Banking Services:
- Specialized Rates
- Deposit Placement Available to Maximize FDIC Coverage
- 24/7 Access to Private Banker
- Streamlined Digital Account Opening
- ACH and Wire Services
- Commercial and Residential Lending Services
The Elevate Banking team is ready to provide you with the best in concierge banking! Get started with our innovative relationship banking solutions today by clicking the button below!
