Personal banking is the go-to for most people’s banking needs. It’s your standard banking experience, offering things like checking accounts, savings accounts, and debit cards. But when it comes to private banking, it’s all about a personalised banking experience.
Often used for larger financing needs, these account holders get personalised attention from experts, added financial solutions, and access to exclusive perks that regular banking just can’t match. Keep reading to discover the main differences between personal and private banking.
What is the Difference Between Personal and Private Banking?
While personal banking serves the general public with standard banking services, private banking caters to the unique needs of high-net-worth individuals with personalised attention, sophisticated financial solutions, and exclusive investment opportunities.
Understanding Private Banking
Private banking specialises in delivering customised financial services and products tailored specifically for high-net-worth individuals.
Typically provided by retail banks or other financial institutions, these offerings cater to a broad spectrum of wealth management needs. Unlike standard banking solutions that usually entail physical branch visits, private banking clients benefit from a dedicated relationship manager who accepts transaction instructions via phone or email, ensuring a personalised and convenient experience.
An Insight into Private Banking
Private banking operates with a distinct approach compared to traditional banking services, offering a more personalised and individualised experience facilitated by a dedicated and experienced “relationship manager” or “private banker” overseeing all financial affairs.
Tailored Services
Each client in private banking receives bespoke services, ranging from routine tasks like bill payments to complex financial transactions such as setting up jumbo mortgages. The private banker handles these tasks, ensuring a high level of personalised service.
Comprehensive Financial Management
Private banking extends beyond standard banking services to address clients’ overall financial situation. In addition to basic offerings like checking and savings accounts, it often encompasses specialised services such as financial planning, investment strategy advice, portfolio management, and retirement planning.
Eligibility Criteria
While private banking services are accessible to a wide range of clients, certain financial institutions impose minimum requirements for investable assets. Although most institutions set a threshold in the six figures, some exclusive firms may stipulate clients have at least £1 million to invest. However, individuals with assets as low as £50,000 may still qualify for specific private banking services.
Understanding Personal Banking
Personal banking, also referred to as retail banking or consumer banking, encompasses financial services tailored to individual customers rather than large corporations. Retail banks offer a comprehensive range of products, such as savings accounts and debit cards, to the general public, with a strong emphasis on delivering exceptional customer service.
This sector of banking caters to the needs of individuals, families, and small businesses, setting itself apart from corporate entities, government organisations, or other financial institutions. Some banks exclusively specialise in retail or consumer banking, operating without branches or divisions focusing on commercial or investment banking services.
Key Services Provided by Retail Banks
At retail banks, customers encounter a diverse selection of products and services meticulously designed to address various financial needs. These offerings include:
- Checking Accounts: These accounts facilitate everyday transactions, providing account holders with a convenient means to manage their finances and conduct routine payments
- Savings Accounts: Customers have the option to open savings accounts, enabling them to save and grow their money while earning interest on their deposits
- Debit Cards: Retail banks issue debit cards, granting customers convenient access to their funds for ATM withdrawals and point-of-sale transactions
- Credit Card Services: Many retail banks offer credit card services, allowing customers to make purchases and manage their finances efficiently while building their credit history
While personal banking serves the general public with standard banking services, private banking offers a tailored approach to meet the unique needs of high-net-worth individuals.
Through personalised attention, sophisticated financial solutions, and exclusive investment opportunities, private banking provides a comprehensive suite of services designed to optimise clients’ financial portfolios. With dedicated relationship managers overseeing all financial affairs and bespoke services ranging from routine transactions to complex financial planning, private banking offers a high level of personalised service unmatched by traditional banking models.
