Why should I offer private banking services

Individuals who have a vast amount of wealth seek the services of professional and qualified individuals to advise and guide them with regards to their investments. Banks and other financial institutions that offer private banking services to their clients are able to cater to these wealthy individuals.

Benefits of offering private banking services

Individuals and companies from across the globe that wish to engage in financial activity in a different jurisdiction are required to obtain a banking license from the relevant regulatory body. This banking license can commonly be obtained from the Financial Services Commission (FSC) of the jurisdiction. Once obtained, the banking license enables the bank to conduct financial activity with their clients. These services tend to include private banking as it is one of the most sought after services in the banking industry.

Private banking services are mostly availed by high net worth individuals who seek the advice and guidance of a qualified and experienced individual to help them manage their wealth. Banks that offer these services are able to draw in a broader and more affluent clientele. Thus enabling the bank to create a larger capital income, as private banking services come with a charge.

In addition, by encouraging current clients to invest in private banking services, banks are ensuring that their clients conduct the majority of their banking business within a particular financial institution. Therefore clients are more likely to choose a broad range of services and financial products that are available from their banking institution (such as mortgages, pensions, insurance and investments). This will encourage clients to bank predominantly within their financial institution, ensuring that the majority of the assets are based with one bank.