What Are The Features Of Private Banking?

There are different kinds of banks in every country – Public or Government-run banks and Private banks. They have many common characteristics and encourage people to save money and invest in different assets and financial products. They have various charges for their services but work under the regulations of the Reserve Bank of India (RBI). They follow most of the guidelines. Government-run banks are different from private banks in many ways.

Many private banking sectors and companies offer additional and specialised features to their customers. They can open a savings account with them as well and even borrow loans if required. Customers can also access online banking facilities such as internet banking, SMS banking, mobile banking, phone banking, etc. They also have specialised banking apps for transactions and bill payments.

Following are the features it offers:

1. Eligibility

Clients need to fulfil specific requirements to be eligible to benefit from priority banking services. It includes the maintenance of a minimum balance in the form of deposits, individual retirement accounts, investments, or other types of assets. The minimum amount deposited in the account may also include linked deposits and investments.

2. Dedicated Representation

Every client reports to a dedicated relationship manager, or a team of people with a thorough understanding of their asset ownership, risk ability, preferences, and long-term financial goals. They offer various facilities which include cheque deposits, initiation of wire transfer services, orders of cheques, etc.

3. Perks

Clients of privilege banking often receive benefits such as lower annual percentage rates for mortgages, higher annual percentage yield on securities which include certificates of deposits (CDs), free safe deposit boxes, etc. They can also charge a small amount of interest on a large loan so that it generates sufficient revenue for the bank.

4. High Management Fees

Clients need to pay large amounts of fees for the services taken from private banks. They also pay for portfolio management and interest on loans. They get a lot of privacy in terms of financial evaluations, interest rates, and investment strategies. They also get discounted charges and favourable rates, which attract a lot of customers.

5. Target Market

The upper-class section of society is the primary target market of private bankers. While performing regular lending activities, they may access tax documents or other personal documents to discover potential clients.

6. Ability to choose products as per the investment portfolio:

The most significant benefit of choosing premium banking services is the ability to select the products and solutions as per the investment portfolio. The manager provides investors with the best solutions that are customised to suit their needs. Most of the banking and financial services want to serve wealthy clients. However, the mechanism may vary from banks. They aim to create a base in most of the countries where they can provide premium and exclusive services to their customers.

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Created on Oct 7th 2020 07:33. Viewed 214 times.

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