While investment management is a key part of private banking, it provides many other services that may surprise you. Let's explore what private banking truly entails and who it can benefit.
Private banking originally developed as a way for wealthy families to have their substantial assets professionally managed. Naturally, investing these assets was a primary focus. Today, most private banks still offer robust investment options and expertise in growing wealth over the long run.
However, private banking is far more encompassing now. Modern high-net-worth individuals and families need sophisticated solutions for supporting complex financial lives. That's where the full-service model of private banking proves particularly valuable.
Beyond investments alone, private banking also commonly includes:
- Trust and estate planning advice
- Banking and lending services
- Tax planning and preparation assistance
- Lifestyle and family office management support
- Philanthropic and succession consulting
- Business management and transition counseling
- Concierge services
By partnering with a private bank, clients gain a dedicated team of specialists tuned into their unique priorities and coordinated to help achieve their goals. It's a personalized approach to financial wellness - not just portfolio returns.
With the right digital private bank, you can access these personalized services from anywhere in the world. An innovative platform like Jetonbank allows clients to manage all their private banking needs securely online or through an app.
While investment management remains core to private banking, holistic wealth advisory has become equally essential for addressing clients' full range of sophisticated financial matters. The assumption that it only involves market returns could not be further from the modern full-service model.
Which Users Is Private Banking Suitable For?
Is private banking truly only for ultra-high-net-worth individuals, or can others potentially benefit as well? Let's explore who private banking is most suitable for.
In the past, the main qualifying criteria for private banking centered around outstanding asset levels. However, as demand has grown for comprehensive wealth solutions, private banks have expanded their target profiles.
While asset minimums still apply to access private banking at large institutions, they have decreased significantly at many firms. Additionally, factors beyond net worth alone are increasingly considered for acceptance.
Some potential user groups that private banking services may fit well include:
- High-earning professionals with varied financial lives needing coordination support
- Business owners seeking expertise in corporate finance and succession planning
- Families wishing to establish multigenerational legacy plans
- Entrepreneurs growing companies that could greatly increase their wealth
- Affluent expatriates relocating overseas for work or lifestyle changes
As long as clients demonstrate sophistication in their approach to finances with plans for continued wealth development, they may qualify even without being among the ultra-wealthy class.
Additionally, accessibility has improved thanks to digital private banking offerings having lower or no minimums at all. For example, an innovative platform like Jetonbank opened participation to a broader range of individuals through its fully online private banking services.
While traditional private banking centered on fortunes in the millions or billions, modern alternatives prove the model can suit varied affluent clienteles beyond absolute net worth alone. Assessing fit focuses more on banking needs complexity.
Is Private Banking Only Available for High Wealth People?
In the past, only the ultra-wealthy could access private banking services. However, as discussed, private banking has evolved to serve more types of clients.
Here are a few key reasons private banking may be feasible for a broader range of people than one might expect:
Lower minimums: Most traditional brick-and-mortar banks require $1-5 million in assets. However, some have lowered this to $500,000 or less. Additionally, some new digital private banks have much smaller minimums such as $25,000.
Comprehensive services: Private banking encompasses more than just investment management. Services like planning, lending, and concierges can benefit those building substantial assets over time but not yet ultra-high net worth.
Expertise for future growth: Private banks aim to grow clients' wealth significantly with guidance. Getting involved earlier allows benefitting from their expertise as net worth escalates.
Alternative qualifications: Beyond net worth, private banks evaluate sophistication, future earning potential, and complexity of financial lives. This expands the eligible pool.
International solutions: Living or working abroad increases banking needs which private services can address far better than local options for global citizens.
While private banking was historically reserved for true economic elites, many clients whose net worth lies in the low millions or even hundreds of thousands are now finding comprehensive wealth guidance through private banking options tailored for varying financial circumstances and stages of asset building.
What Transactions Can Be Performed in a Private Banking Account?
When seeking a private bank, it's important to understand the range of transactions that can be performed through such an account. Let's explore some of the key activities supported:
Deposits and withdrawals: Manage cash flows through checking, savings, money market and time deposit accounts.
Domestic and international wire transfers: Privately move funds between accounts around the world securely.
Bill payment: Pay utilities, services, loans and more directly from your private banking accounts.
Online and mobile banking: Manage finances on any device through a private bank's digital platform.
Investment purchasing: Buy and sell securities, equities, bonds, funds and other assets online.
Lending: Arrange bespoke secured and unsecured loans, lines of credit and mortgages.
Foreign exchange: Engage in currency exchanges with competitive rates and no transfer fees.
Check writing: Write and deposit paper checks as needed for flexible access to funds.
Digital assets: Some private banks now offer the ability to buy, hold and exchange major digital coins.
Concierge assistance: Access exclusive support for lavish purchases, travel plans and premium experiences.
A private banking account essentially gives you the capabilities of a full-service commercial bank, but with personal attention and higher-end offerings tailored for affluent clients and their evolving needs.
Can I Send Money Internationally With a Private Banking Account?
One of the most valuable perks of holding a private banking account with Jetonbank is the ability to easily send and receive international funds. Whether you need to send money to another country for business or personal reasons, Jetonbank simplifies cross-border transfers through their secure digital banking channels.
Specifically, clients can initiate international money transfers directly from their private account by simply providing the recipient's name, account details and location.
Jetonbank supports transfers between dozens of currencies and can often deliver funds into the beneficiary's account within 1-3 business days depending on the country.
Plus, with Jetonbank you won't break the bank on fees - their foreign exchange rates are typically better than retail bank alternatives.
Clients also appreciate the transparency since exchange rates are clearly displayed upfront rather than hidden within transfer or wire fee calculations.
The Most Suitable Digital Bank to Open a Private Banking Account
For those seeking the advantages of private banking investments, sophisticated wealth management and complete financial control through a digital private bank, Jetonbank stands out as the most suitable choice.
Here are a few reasons why:
- As a fully licensed and regulated online private bank, Jetonbank provides the security and assurances of a traditional institution with the convenience of modern digital banking.
- Through its mobile and web platforms, Jetonbank delivers all the transaction capabilities one would expect from a private account, including bill payment, money transfers, card usage, online banking and more.
- Jetonbank offers tailored wealth management services including portfolio analysis, investment guidance in areas like equities, bonds, funds and alternative assets, and access to professional financial advisors.
- It maintains a global perspective with expertise in international banking, cross-border payments and wealth strategies for borderless clients.
- Customer service is available 24/7 through their digital channels and dedicated relationship managers provide that personal touch.
- Minimums are reasonable enough to accommodate a variety of clients seeking to build wealth over time rather than just ultra-high net worth individuals.
For those wanting premium private banking privileges with the freedom of digital private banking, Jetonbank provides an all-in-one solution with the security, service quality and global access needed to effectively manage wealth in today's digital world.
They are arguably the top choice for convenient and compliant online private banking services worldwide.
