What is private banking and how much money do you need to access it?

Keeping money in a joint bank account is the only option for most mortals… However, banks sometimes reserve a spot for their smaller clients. bonussuch as private banking, also called personal banking or private wealth.

By definition, private banking is a segment of the banking sector that is characterized by a high degree of customization and highly professional management of customer assets. Because of this, banking companies reserve this type of service for the highest net worth on the market.

To gain access to private banking, banking firms – in addition to high net worth – look for a very specific customer profile, which they assess based on a number of criteria, such as: Your risk tolerance, your investment goals, your financial planning, your tax situation…

Actually a set of pretty strict requirements that few people have access to. However, if successful, the private banking customer usually receives very advantageous conditions, which make it easier for him to increase his assets in the medium and long term than the customer of a traditional bank.

How much equity is required to access private banking?

The minimum equity required to be a private banking client varies significantly by company. In the market, the offer is diverse, although banks such as Andbank or Banca March set the reduction at 300,000 euros. In other cases, such as Bankinter Banca Privada or UBS, the minimum reaches one million euros.

Furthermore, within the private banking segment, it is useful to distinguish between two types of management. On the one hand, it’s noticeable the US model, which focuses on corporate clients who want to increase their returns through investments; and on the other hand the Swiss model, whose typical clients are wealthy people who want to further increase their wealth. based on reducing their taxes – theoretically legal – and earning returns close to inflation.

At the top of private banking are the private wealtha model for large family fortunes over 10 million euros who are not only looking for asset management, but also need other additional services such as real estate brokerage or advice on selected investments such as art or philanthropy.

What exclusive services does Private Banking offer?

The main reason for moving into private banking (if your wealth allows) is to gain access to a range of investment products that would not make you profitable in traditional investment banking. For example, some exclusive investment funds that ask for at least 100,000 euros start investing.

In addition, private banking tends to be more specialized in investments family officesReal estate assets – via a partner, for example – or SICAVs, all with more professional tax or financial planning advice.

In short, if you have equity of at least 300,000 euros and want to delegate its management, Private Banking is the best option on the market to optimize your resources and achieve greater profitability in the medium and long term.

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