What is privet banking?

Private banking refers to the services provided by banks to high net worth individuals (HNWIs) or ultra high net worth individuals (UHNWIs) who require more personalized and exclusive financial services than the general public.

Private banking provides personalized services and banking products, such as specialized credit solutions, wealth management, investment advice and portfolio management, tax planning, estate planning, and asset protection services. Private banks aim to offer confidentiality, personalized financial services, and access to exclusive investment opportunities and financial products.

Private banking began in the 19th century with the emergence of private banks in Switzerland and France. Private banking is now a global industry, with many large banks having separate divisions specifically focusing on private banking services.

Private banking is often regulated more strictly than retail banking due to the higher risks associated with dealing with wealthy individuals, as well as the importance of confidentiality to clients.

While private banking services are designed for HNWIs and UHNWIs, some banks also offer similar services to wealthy families and closely held businesses.

Overall, private banking provides customized and exclusive services to clients who require specialized financial solutions and who are able to meet the high minimum wealth requirements for these types of services.