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Right Criteria To Select Private Banking Account
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Private banking is a form of personalized financial and banking service that is catered to the banks high net worth individuals, who have accrued wealth that bypasses the average persons. Private Banks aim to provide these individuals with the most appropriate options, so that they can provide the bank with enough capital through investments and these individuals will have an access to a large variety of investment options. In this article, we give you the right criteria to select a private banking account.
• Good referrals
A good referral is crucial in the private banking business. While various banks have implemented various methods to acquire new clients, most banks rely on banking referrals and tie ups with their retail and corporate banking divisions. It is a common belief amongst private banks that the primary source of leads must be client referrals, where a high net worth individual would refer the services of the private banking to his friends, thus gaining more high net worth clients to invest in the bank. Thus if a private has a good referral from a client, you may want to consider it as a good investment choice.
• Fee charges model
Most banks charge their clients in different ways and methods. Some follow the transactional model where the banks do not charge the client any advisory fee, but succeed on the commissions they receive through third party product distribution. In recent times, most banks follow a hybrid system where the banks charge a fixed free for certain products or services and an advisory fee for the rest. A few selected banks follow the complete advisory fee model and charge the clients a percent of AUM. Choose a model that suits your needs well, and will be beneficial to you. It is mostly valuable, if you choose the advisory fee model because in the near future there is a high possibility that the margins of the commissions might decrease.
• Value scheme
Most private banks have a definite value proposition which defines themselves along certain factors and meet the basic needs across the rest. These value proposition factors are normally parent brands, one bank approach, unbiased advice, unified platform, quality research and a good advisory team. Most parent brands have a strong presence internationally and provide private banking as a trustworthy and confident service. The one bank approach offers a tailored and integrated proposition to satisfy the clients personal as well as his business needs. Most private banks today offer a more open ended product platform service to provide an unbiased advice and yet serve the client without restrictions. A few banks claim to offer a strong advisory team that would reflect in their products and service that are offered to the clients. Choose the ones that suit your needs and provide you with the best satisfactory service.
Author Bio :- Neha Sharma; a finance student, has extensive knowledge about private banking. She wishes to share this information to the public so that others can gain from it.
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