Banking

Hannah Beecham  Monday, Feb 7 2011  15.59

Privately Speaking

Overall, three features define private banking – wealth management, personal service and confidentiality. A good private bank should offer its clients more than just a ‘posh’ credit card. As well as all the essential transaction banking facilities, expats knocking on the doors of a private bank do so because they are at that financial stage of their lives when what they need is a fully operational relationship manager. This expert must be experienced enough to be able to appreciate exactly the financial aspirations, aims and attitudes of each individual client and act accordingly to ensure profitable investment management practices.

Core services

The kinds of core services expatriates can expect from a private bank are listed below and you can use this check list when approaching and comparing services. Be sure to ascertain whether the services are offered at an entry level you can afford and always check what the charges are for each service.

• Debit/credit cards
• Discretionary portfolio management
• Advisory portfolio management
• Derivatives brokerage
• Equities brokerage
• Collective investment brokerage
• Gearing facilities
• Trust, tax and estate planning
• Pension planning
• Property management

How much to walk through the door?

As for entry levels, not all private banks lay down hard and fast rules on the minimum sums required to secure their services. In many ways this is about private banks turning to new money, rather than relying on inheriting the next generation of old family money. Private banks have their sights set on the future prospects of clients, say those currently running a successful business as much as they do on the current asset value held on deposit. However, a benchmark figure is helpful for expats to ascertain whether it is worth enquiring about private banking service and those researching these will find minimum entry levels with some banks as low as £25,000, while others still insist on an asset-worth of at least £500,000.

Compare one against another

It is useful to make comparisons between a number of private banks to gain an insight into what each one has to offer and whether this fits your own niche needs. Check out whether you can access the following: multi-currency facilities, tax advice, share-dealing, internet banking, and high-interest savings accounts. You should also investigate the range of in-house investment products.

Expats should also note that an increasing number of offshore retail banks are offering their customers the opportunity to become private banking clients. Assuming you are happy with your bank, it might be worth asking the manager, first of all, what level of private banking service is offered and measuring this against your choice of dedicated private banks.