What is a private bank? How to apply

Private banking has never had an exact definition. In layman’s terms, it is a cradle-to-grave financial service, a highly private service specifically for the wealthy.

It is necessary to tailor investment and financial products according to customer needs, to provide comprehensive investment and financing services to customer investment companies, and to provide education planning, immigration planning, reasonable tax avoidance, and trust planning services for the wealthy, their families, and their children.

According to the service classification of the Western banking industry:

1. It is Mass Banking, which does not limit the size of customer assets;

2. It is a VIP bank (Affluent Banking), the customer assets are more than 100,000 US dollars;

3. It is a private bank (Private Banking), the customer assets are required to be more than 1 million US dollars;

4. It is a family Family Office requires customers to have assets of more than 80 million U.S. dollars. Of course, the minimum financial asset amounts required by major international banks in different regions and different time periods are also slightly different.

For example, Goldman Sachs The threshold set for private banking customers in Hong Kong and Macao is US$10 million, HSBC’s minimum threshold is US$3 million, and UBS (ranked No. 1 in global private banking assets) has a financial asset requirement of only US$50 for offshore accounts of mainland Chinese customers. million dollars.

Extended information:

Private banking services are a type of banking services, specifically for the wealthy class, providing them with personal property investment and management services. Generally, they need to have at least 1 million. Only liquid assets above US dollars can apply for such services in larger international financial companies or banks.

The most important private banking services are asset management, investment planning, and providing special services according to customer needs. It can also save customers tax and financial transaction costs by setting up offshore companies, family trust funds, etc. Therefore, private banking services often combine trust, investment, banking, tax consulting and other financial services. The average annual profit rate of this type of service can reach 35%, which is much higher than other financial services.

In addition, through private banking services, customers can also access many stocks, bonds, etc. that ordinary people cannot purchase. Clients of private banking services often have the opportunity to invest in some private limited companies and gain priority in purchasing IPOs.

Baidu Encyclopedia-Private Bank